Role of Micro-Financing in Creation of Self-Employment in Pakistan: A Case Study of District Bahawalpur

Abstract

Employment problem is one of the key issues in developing countries especially in Pakistan.

Self-employment (own business) is integral part of the society, majority of the people of our country is belong to business sector. Micro finance plays role in improving self-employment through business or productive activities. In this study an attempt is made to explore the determinants of self-employment in which micro finance is key determinant. This study used bivariate regression analysis based on primary data of Bahawalpur City and to check the relationship of different socio economic determinants on self-employment. Self-employment is measured by binary number as 01 coding of dummy dependent. As taking loan or not taking loan. Similarly all explanatory variables measured by binary coding shape of 01.The results show that self-employment at remarkably influenced by age, education, sex, family wealth, marital status, technical skill, micro finance and loan purpose. More over at the end it is concluded that microfinance is major independent variable in this research and it has positively and highly significant impact on self-employment,i.e. 200% or 2 times may can increase self-employment if provides loan at easy grounds.

Keywords: microfinance, self-employment, bivariate logistic regression,