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Research Articles

Vol. 3 No. 1 (2024): OPJU Business Review

Understanding the Impact of Microfinance on Economic Development: A Historical Perspective

DOI:
https://doi.org/10.63825/opjubr.2024.3.1.845
Submitted
11 August 2025
Published
12 September 2025

Abstract

Despite this study digs into the multi-layered connection among microfinance and development of the economy, meaning to give a complete comprehension of the effect of microfinance on different parts of financial development. Microfinance has emerged as a useful asset in the battle against poverty, and its part in cultivating financial improvement has been a subject of huge interest. The review considers the difficulties and impediments that microfinance initiatives face and proposes expected roads for future examination and strategy proposals. It examines issues connected with sustainability, over-obligation, and the requirement for capable loaning and customer security. The historical perspective is taken into account while interpreting and commenting on the current study about the impact of microfinance on economic development. The purpose of this paper is to investigate and study the connection among microfinance and economic development, and to give a more profound comprehension of how microfinance intercessions can impact economic growth and poverty reduction. The effect of microfinance is dependent upon a few contexts oriented factors and requires a nuanced approach. A top to bottom comprehension of the mind-boggling elements engaged with microfinance and economic development is fundamental for policymakers, experts, and scientists planning to expand the advantages of microfinance for destitution decrease and financial development.

References

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