Impact of Islamic and conventional microfinance on poverty alleviation: A qualitative analysis
Keywords:
Islamic Microfinance, Conventional Microfinance, Poverty Alleviation, QualitativeAbstract
This study attempts to analyze the influence of Islamic and conventional microfinance on poverty alleviation in Pakistan. This study adopts a qualitative approach of investigation. It conducts 16 in-depth interviews with Islamic and conventional microfinance clients to evaluate the influence of microfinance on poverty alleviation. The study results reveal that Islamic microfinance significantly contribute towards poverty alleviation as compared to conventional microfinance. Further, it has identified some important factors like entrepreneurship, social capital, awareness, education, religiosity, and empowerment that may help to enhance the influence of microfinance towards poverty alleviation. This research may help microfinance researchers, governments, practitioners, and rating agencies to focus on suggested factors that may affect the connection between microfinance and poverty alleviation. This study may help to understand the poor living conditions and financial difficulties of microfinance clients and may help the social organizations to devise strategies to serve them in a better way to overcome their financial challenges as well as to cope with their family issues. To the best of our knowledge, this will be the first study showing a qualitative analysis related to the impact of both Islamic and conventional microfinance on poverty alleviation.
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