Advertisement

Microfinance Impact Assessment Methodologies: Is it Qualitative, Quantitative or Both?

Chapter

Abstract

Microfinance impact assessment is essentially a way of determining the effect of microfinance programme on the participants over a given period of time. However, the research approach and method to derive the effect vary. The positivists argue for the use of quantitative method to explain the reason for changes among microfinance programme beneficiaries. This is achievable by using statistical tests for explanation and prediction of the phenomena under study. This leads to generalisation of result such that the outcome of sample can be used to determine the result of the population. However, the interpretivists lend their work to the inductive strategies that meaningful microfinance impact assessment cannot be determined by using quantitative methods of data collection and analysis. Rather, a coherent and useful microfinance impact should be based on qualitative methods. It is recommended that future studies should strive for the use of mixed method such that both the qualitative and quantitative approaches are used in a single study.

Keywords

Microfinance Mixed method Qualitative Quantitative 

JEL classification

B26 D14 D61 D71 G23 

References

  1. Adjei, J. K., & Arun, T. (2009). Microfinance programmes and the poor: Whom are they reaching? Evidence from Ghana (Working Paper 72). Manchester: Brooks World Poverty Institute.Google Scholar
  2. Adjei, J., Arun, T., & Hossain, F. (2009). Asset building and poverty reduction in Ghana: The case of microfinance. Savings and Development, 3(33), 265–291.Google Scholar
  3. Annim, S. K., Awusabo-Asare, K., & Asare-Mintah, D. (2008). Spatial and socio-economic dimensions of clients of microfinance institutions in Ghana. Journal of Geography and Regional Planning, 1(5), 085–096.Google Scholar
  4. Anyanwu, J. C. (2005). Rural poverty in Nigeria: Profile, determinants and exit paths. Tunisia: African Development Bank.Google Scholar
  5. Buckley, G. (1997). Microfinance in Africa: Is it either the problem or the solution? World Development, 25(7), 1081–1093.CrossRefGoogle Scholar
  6. Calkins, P., & Ngo, A. (2005). The impacts of farmer cooperatives on the standard of living of cocoa producing villages in Cote d’Ivoire and Ghana. Canada: Societe de Cooperation pour le Developpement International.Google Scholar
  7. Copestake, J., Johnson, S., & Wright, K. (2002). Impact assessment of microfinance: Towards a new protocol for collection and analysis of qualitative data. Improving the Impact of Microfinance on Poverty: Action Research Programme (Working Paper No. 7).Google Scholar
  8. Copestake, J. P., Dawson, J., Fanning, P., Mckay, A., & Wright-Revolledo, K. (2005). Monitoring the diversity of the poverty outreach and impact of microfinance: A comparison of methods using data from Peru. Development Policy Review, 23(6), 703–723.CrossRefGoogle Scholar
  9. Edgcomb, E. L., & Garber, C. (1998). Practitioner-led impact assessment: A test in Honduras. Washington, DC: Management System International.Google Scholar
  10. Falaiye, C. (2002). Assessing the impact of microcredit on rural Nigerian women. Unpublished dissertation (M.Sc.), University of Guelph.Google Scholar
  11. Ghosh, B. N. (1992). Scientific method and social research (5th ed.). India: Sterling Publishers Private Limited.Google Scholar
  12. Haile, A. (2003). The impact of microfinance in Ethiopia. Unpublished dissertation (M.A.), Addis Ababa University.Google Scholar
  13. Haque, M. S., & Yamao, M. (2008). Can microcredit alleviate rural poverty? A case study of Bangladesh. Proceedings of World Academy of Science, Engineering and Technology, 36, 663–671.Google Scholar
  14. Holmgreen, C. (2011). Do cooperatives improve the well-being of the individual? A case study of a Bolivian farmers’ cooperative. Unpublished dissertation (B.Sc.), Lund University.Google Scholar
  15. Hulme, D. (2000). Impact assessment methodologies for microfinance: Theory, experience and better practice. World Development, 28(1), 79–98.CrossRefGoogle Scholar
  16. Larocque, P., Kalala, J., & Gaboury, A. (2002). The impact of savings and credit cooperatives in Burkina Faso. Ottawa: Developpement International Desjardins.Google Scholar
  17. Mawa, B. (2008). Impact of microfinance: Towards achieving poverty alleviation. Pakistan Journal of Social Sciences, 5(9), 876–882.Google Scholar
  18. May, T. (2001). Social research: Issues, methods and process (3rd ed.). Berkshire: Open University Press.Google Scholar
  19. Morris, G., & Barnes, C. (2005). An assessment of the impact of microfinance services in Uganda. Washington, DC: National Academy of Public Administration.Google Scholar
  20. Nelson, C. (2000). Learning from clients: Assessment tools for microfinance practitioners. Washington, DC: The Small Enterprise Education and Promotion Network.Google Scholar
  21. Oke, J. T., Adeyemo, O. R., & Agbonlahor, M. (2007). An empirical analysis of microcredit repayment in south western Nigeria. Humanity and Social Sciences Journal, 2(1), 63–74.Google Scholar
  22. Oluyombo, O. O. (2007). Funding of small scale enterprises: The microfinance option. Ilorin Journal of Business and Social Sciences, 12(1), 1–9.Google Scholar
  23. Oluyombo, O. O. (2011). Research companion for students and professionals. Ogun: Treasure Land Academy.Google Scholar
  24. Oluyombo, O. O. (2012). The role of cooperative societies in rural finance: Evidence from Ogun State, Nigeria. Unpublished thesis (Ph.D.). De Montfort University.Google Scholar
  25. Oluyombo, O. O. (2013). Impact of cooperative finance on household income generation. DLSU Business and Economic Review, 23(1), 53–65.Google Scholar
  26. Park, A., & Ren, C. (2001). Microfinance with Chinese characteristics. World Development, 29(1), 39–62.CrossRefGoogle Scholar
  27. Pawlak, K., & Szubert, D. (2004). Counting (on) your prospective clients: Guiding principles in measuring microfinance client satisfaction and loyalty. Microfinance centre for Central and Eastern Europe and the new independent States. MFC Spotlight Note, 8, 1–16.Google Scholar
  28. Robson, C. (2002). Real world research (2nd ed.). Oxford: Blackwell.Google Scholar
  29. Saunders, M., Lewis, P., & Thornhill, A. (2009). Research methods for business students (5th ed.). England: Pearson Education Limited.Google Scholar
  30. Sebstad, J. (1998). Toward guidelines for lower-cost impact assessment methodologies for microenterprise programs. Washington, DC: Management System International.Google Scholar
  31. Sharma, N., Simkhada, N. R., & Shrestha, R. (2005). Impact assessment of SACCOSs in Nepal’s hill districts: Findings of an action research. Kathmandu: Centre for Micro-Finance (Pvt) Ltd.Google Scholar
  32. Shaw, J. (2004). Microenterprise occupation and poverty reduction in microfinance programs: Evidence from Sri Lanka. World Development, 32(7), 1247–1264.CrossRefGoogle Scholar
  33. Todd, H. (2000). Poverty reduced through microfinance: The impact of ASHI in the Philippines. Malaysia: CASHPOR Technical Services.Google Scholar
  34. Westover, J. (2008). The record of microfinance: The effectiveness/ineffectiveness of microfinance programs as a means of alleviating poverty. Electronic Journal of Sociology, 1–8. http://www.sociology.org/content/2008westoverfinance.pdf.
  35. Yoshikawa, H., Weisner, T. S., Kalil, A., & Way, N. (2008). Mixing qualitative and quantitative research in developmental science: Uses and methodological choices. Developmental Psychology, 44(2), 344–354.CrossRefGoogle Scholar

Copyright information

© The Author(s) 2017

Authors and Affiliations

  1. 1.Department of Accounting, School of Management and Social SciencesPan Atlantic UniversityLagosNigeria
  2. 2.Department of Financial StudiesRedeemer’s UniversityOsogboNigeria

Personalised recommendations