Impact of Micro Finance on Profitability of Small Farmer’s A Case of Agriculture Sector of Pakistan

Abstract

The current study is planned to investigate the impact of micro finance on the profitability of small agriculture farmers that how does micro finance influence their profitability. The objective of the study was to investigate the function of micro finance in generating profits for the small agriculture farmers of Tehsil sadder Bahawalpur. The sample of the study includes 150 small agriculture farmers of Tehsil sadder Bahawalpur Results of the study explain that micro finance has significant impact on the profitability of small agriculture farmers and there is a positive relationship between micro finance and profitability of small agriculture farmers. Houseman test was conducted to decide the appropriate analysis techniques from fixed and random effect for this particular study which prove that random effect technique is appropriate for this particular panel data study.

Keywords: Micro finance, impact, profitability, small agriculture farmers,