The Impact of Micro-finance on Self-employment and Poverty Reduction: A case of Sindh Rural Support Organization and Tameer Micro Finance Bank, Sindh

  • Israr Ahmed University of Sindh.
  • Imamuddin Khoso University of Sindh.
Keywords: Micro finance(MF), Reduction of poverty(PR), self-employment(SE), Sindh rural support organization(SRSO), Telenor microfinance bank(TBM).


Micro finance is well-organized and successful instrument to decrease poverty. Although microfinance Sector in Pakistan has recognize important development and attain little cost formations. The major reason of study is to forecast that how Micro finance decreases poverty or not and method of self-employment in rural and urban of Sindh successful or not. A most important mean of this research article was to calculate that what type of Impact of microfinance on reduction of poverty and Self-employment with Supply lending and Demand following hypotheses theory. Researcher used Stratified random sampling technique 500 clients of each organization (TMB and SRSO) was selected for testing PLS with Smartpls 3. After assessment of responses with the help PLS of measurement and structural model result shows positive impact of independent variable (IV) on Dependent variables (DVs).


Download data is not yet available.

Author Biographies

Israr Ahmed, University of Sindh.

PhD. Scholar IBA, University of Sindh.

Imamuddin Khoso, University of Sindh.

Professor (PhD Supervisor) IBA University of Sindh.


ADB. (2000). Finance for the Poor.Microfinance Development Strategy, Manila. Asian Development Bank (ADB).

ADB. (2012). MICROFINANCE DEVELOPMENT STRATEGY 2000 Sector Performance and Client Welfare.

Awan, A. G., & Ibrahim, M. A. (2015). Role of Micro-Financing in Creation of Self-Employment in Pakistan: A Case Study of District Bahawalpur. Journal of economics and sustainable development.

Awan, P. A., & Ibrahim, M. A. (2015). Role of Micro-Financing in Creation of Self-Employment in Pakistan: A Case Study of District Bahawalpur. Journal of Economics and Sustainable Development Vol.6, No.7, 38-45.

Basharat, A., Arshad, A., & Ali, K. (2014). Pakistan Microfinance Review 2014. Pakistan Microfinance Network.

Blanchflower, D. G. (2000). Self-employment in OECD countries. Labour Economics, 7, 471-505. doi:

Brau, J. C., & Woller, G. M. (2004). Microfinance: A Comprehensive Review of the Existing Literature. The Journal of Entrepreneurial Finance, 9(1). Retrieved from

Chow, S., Vieito, J., & Wong, W. K. (2018, June 26). Do both demand-following and supply-leading theories hold true in developing countries? Munich Personal RePEc Archive, 1-41. doi:

Datta, S. K., & Singh, K. (2019, July 15). Variation and Determinants of Financial Inclusion and association with Human Development: A Cross Country Analysis. IMB Management Review. doi:

Erhardt, E. (2017, April 27). Microfinance beyond self-employment: evidence for firms in Bulgaria. Labour Economics, 47, 75-95. doi:

Fornell , C., & Larcker, D. F. (1981). Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. Journal of Marketing Research, 18(1), 39-50.

Ghanghro, A. A., & Khan, N. (Dec 2015). Estimating Potential Market size for Microcredit in Pakistan. Pakistna Microfinance Network.

Hair, J. F., Hult, G. M., Ringle, C. M., & Sarstedt, M. (2014). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM) (Vol. Second Edition). Los Angeles: SAGE Publications, Inc.

Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2-24. doi:

Hearth H. (2018). MICROFINANCE T h e o r y and P r a c t i c e, (Vol. First Edition). Kularatne Mawatha, Colombo , Sri Lanka: S. Godage & Brothers (Pvt) Ltd.

Husain, I., Qureshi, A. A., & Hussain, N. (2019). The Economy of Modern Sindh Opportunities Lost and Lessons for the Future. Karachi: OXFORD University press.

JCR-VIS. (May 2015). Microfinance Sector. JCR-VIS Credit Rating Company Limited.

Kahn, A., Rahman, T., & Wright, R. (2016, July). The Impact of Micro-Credit on Employment: Evidence from Bangladesh and Pakistan. IZA Discussion Paper.

Khan, ,. M., Zhuang, J., Gunatilake, H., Niimi, Y., Jiang, Y., Hasan, R., & Khor, N. (October 2009). Financial Sector Development, Economic Growth, Financial Sector Development, Economic Growth,. ADB Economics Working Paper Series No. 173.

Khanam, D., Mohiuddin, M., Hoque, A., & Webe, O. (2018). Financing micro-entrepreneurs for poverty alleviation: a performance analysis of microfinance services offered by BRAC, ASA, and Proshika from Bangladesh. Journal of Global Entrepreneurship Research. doi:

Khandker, S. R., Baqui Khalily, M. A., & Samad, H. A. (2015). Mitigating seasonal hunger with microfinance in Bangladesh: how does a flexible programme compare with the regular ones? Journal of Development Effectiveness, 7(1), 23-42. doi:

Marconatto, D. A., Cruz, L. B., Moura, G. L., & Teixeira, E. G. (2017). Why the microfinance institutions exist: lending groups as a mechanism to enhance informational symmetry and enforcement activities. O&S - Salvador, v. 24,(n. 83), 633-654.

Mohsin, S., Bashir, M. F., & Tariq, Y. B. (2018, Sep 28). Outreach and Performance Analysis of Microfinance Bank of Pakistan. Business & Economic Review:, Vol. 10, (No.3), pp. 21-40.

Murinde, V. E. (1994). Financial development and economic growth in Singapore:demand-following or supply-leading?,. Applied Financial Economics, 4(6), 391-404.

Noreen, U., Imran, R., Zaheer, A., & Saif, M. I. (2011). Impact of Microfinance on Poverty: A Case of Pakistan. World Applied Sciences Journal 12, 877-883.

Pakistan Bureau of Statistics . (2018, January 03). Block Wise Provisional Summary Results of 6th Population & Housing Census-2017. Retrieved July 05, 2020, from Pakistan Bureau of Statistics (PBS):

Patrick, H. (1966). Financial development and economic growth in underdeveloped countries. Economic development and Cultural change, 14(2), 174-189.

Pervaiz, Z., Ali, D. A., Chani, M. I., & Jan, s. a. (January 2011). Poverty, Inflation and Economic Growth:Empirical Evidence from Pakistan. world Applied sciences journal, 1058-1063.

Robinson, J. (1952). The generalization of the general theory In: the rate of interest and other essays. London: MacMillan.

Rudrabatla, R., Roy, S., & Kumar, K. (2015). Role of Microfinance for Improving Quality of Life by Providing Financial Services to Low-income Group: A Critical Review. International Journal of Applied Engineering Research, ISSN 0973-4562 Vol. 10 No.55.

Sangwan, S., & Nayak, N. C. (2019, MAy 07). Do outreach approaches differ between Self Help Group Bank Linkage and Microfinance Institution based microfinance? Evidences from Indian states. Journal of Social and Economic Development. doi:

Shaheen, I., Hussain, I., & Mujtaba, G. (2018). Role of Microfinance in Economic Empowerment of Women in Lahore, Pakistan: A Study of Akhuwat Supported Women Clients. International Journal of Economics and Financial Issues, 8(2), 337-343.

Shastri. (2009). Microfinance and Poverty Reduction in India A Comparative Study with Asian Countyries. African Journal of Business Management ., 136-140.

Sidek, M. H., Sami, W., & Hamid, M. R. (2017). Discriminant Validity Assessment: Use of Fornell & Larcker Criterion Versus HTMT Criterion. Journal of Physics: Conference Series,890, 1-5. doi:

Tariq, M., Aleemi, A. R., & Iqbal, D. A. (2015, Fall). INVESTIGATING THE ROLE OF MICRO FINANCE ON ECONOMIC AND SOCIAL DEVELOPMENT OF PEOPLE: A CASE STUDY AREAS OF SIND, PAKISTAN. IBT Journal of Business Studies (Formerly Journal of Management & Social Sciences), Vol. 11,( No. 2,), 182-199.

World Bank . (2018). Report of the World Bank on poverty statistics. United Nations Economic and Social Council.


Yusuf, M.-B. O., Shirazi, N. S., & Ghani, G. M. (2013). The Impact of Pakistan Poverty Alleviation Fund on Poverty in Pakistan: An Empirical Analysis. Middle-East Journal of Scientific Research 13 (10), 1335-1344.
How to Cite
Ahmed, I., & Khoso, I. (2020). The Impact of Micro-finance on Self-employment and Poverty Reduction: A case of Sindh Rural Support Organization and Tameer Micro Finance Bank, Sindh. Amazonia Investiga, 9(32), 18-27.