A Multivariate Model of Micro Credit and Rural Women Entrepreneurship Development in Bangladesh

By Sharmina Afrin, Nazrul Islam, Shahid Ahmed. 2009

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In Bangladesh, micro credit programs have positive socioeconomic impact on the rural women borrowers. However, it is perceived that the micro credit programs help the rural women borrowers to survive only and do not help them to develop entrepreneurial capabilities. Hence, this paper aims at identifying the factors related to the development of entrepreneurship among the rural women borrowers through micro credit programs. A multivariate analysis technique like Factor Analysis was conducted to identify the entrepreneurship development related factors. Structural equation modeling was used to develop a model of micro credit program and the development of rural women entrepreneurship in Bangladesh. Results show that the financial management skills and the group identity of the women borrowers have significant relationship with the development of rural women entrepreneurship in Bangladesh. The experience from the parent’s family of the borrowers and the option limit may also lead to the rural women borrowers to be entrepreneurial.

Subfields: Business and International Management, Economics and Econometrics, Sociology and Political Science

View Paper: https://www.semanticscholar.org/paper/aa3042fa0bb83b62d6194319f31d6f436efbd7f2

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