Availability of Microfinance & Its Impact on Economic Growth: A Case Study of Rural Areas of Khyber Pakhtunkhwa

Abstract

Microfinance is one of the most widely used tools for poverty reduction all over the world. This research provides an overview of the availability of microfinance and its impact on economic growth in the rural areas of Khyber Pakhtunkhwa, Pakistan. Opinion survey of the locals of different rural areas of Khyber Pakhtunkhwa has been conducted using schedule method. A sample size of 100 people has been selected from the randomly selected 35 villages of Khyber Pakhtunkhwa. Descriptive statistics for center and dispersion have been used for the purpose of analysis. Findings suggest that there is a huge gap between the amount of microfinance needed and the amount of microfinance that is available in the rural areas of Khyber Pakhtunkhwa. Moreover, the available microfinance facilities are not generating sufficient economic activities.Available at SSRN: http://ssrn.com/abstract=1944406