Abandoning Microfinance in Turkey: An Explanatory Study

Ali Kabasakal; Amna Malık

Abandoning Microfinance in Turkey: An Explanatory Study

Year 2019, Volume: 5 Issue: 1, 25 - 37, 01.03.2019

Abstract

Microfinance has brought a change in the economic life of the participants of the society by providing an opportunity to the financially disadvantaged individuals to be employed and be financially independent. Microfinance is a financial instrument that can be utilized to combat poverty and other challenges hindering the progress of countries. It has managed to impact the lives of thousands of families within Turkey and on a global level too. Recently, it has been observed that the number of clients of microfinance has decreased. Therefore, the objective of the research is to identify the reasons of dissatisfaction among microfinance borrowers which leads to their separation from the microfinance institution. A total of 150 drop-out clients from Turkish Grameen Microfinance Program have been considered through the random sampling method for the research via the survey method of face-to-face interviews. Change in income level of the drop-out clients was an important reference in the method of microfinance as an instrument against poverty. The recommendations of this research like repayment period and microcredit limit can be considered and these suggestions may contribute to better managerial strategies and organizational plans for the development of microfinance institutions

Keywords

Microfinance, Poverty, Microfinance Clients.

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