Assignment on geographic factor of "Market growth"

 "Market growth" strategies in Sri Lanka: The market of Srilanka is growing according to the demand of the customer in the market, also by creating innovative ideas for meeting the needs and categories of the client (herath, H.M.W.A.,Guneratne,L.H.P.,& sanderatne,N., 2015) The policy of the NGO and banks are clear, they provide a loan in small amount, without any kind of license and agreement. Women usually collect loan from microfinance banks as because government banks require a formal source for borrowing money and micro-financing banks provides loans without any sources. Many districts of Sri Lanka are below the poverty line, and there is a lack of technology and all. "Microfinance banks" helped in a different part of Sri Lanka, and resulted in growth rate and rated in decreasing poverty rate of 30.9% to 25% in 12 consecutive years. Districts like Kandy, material, Badulla, Monaragala, Nuwara Eliya are being helped by WHO.

        After this many self-help groups and microfinance bank came in action and they got success in empowering the rural people, but the main target of the group is to provide better facilities and requirement for women. Microfinance bank in Srilanka plays an important role, microfinance helps the country with capital and shows the existing connection through the social platform and also mitigate the barriers in the country, against the collective action (Thrikawala, 2017)

Developing technology helped the country to improve on their financial assets, with the help of technology. Many financial ways are developed for countries are "Bikash for Bangladesh", "M-Pesa in Kenya" but as remaining of technology also the country remained low in "financial transaction"

Some geographic factors like:

1." Microfinance state as Sri Lanka": Microfinance has helped ion growing in-country GDP and microfinance banks like Janshakti Banks which are providing loans to the people of rural people at a fixed rate of interest. Microfinance banks are one of the advanced forms of transferring of funds informal system. The economy is growing as there is a lot of rural people in the country and results in a high requirement of financial assets.

2." Loan management and distribution": Groups are made by the leader and the agents for performing their task at zero cost for their institution (Van Damme,p.,Wijesiri,M.,& Meoli, 2016) The borrower of the loan get ready with loan "as per rules of the company" and ensure that the payment get 5 ready at the end of the week. The agents of the banks work as an operational worker, like providing loan to the borrowers and also arranging the loan for the borrower according to the experience they have gained from the borrower.

3. Forward movement: Microfinance banks are kind of banks that are working with less pressure, high profit and at low interest. Microfinance bank of Sri Lanka like Janshakti Bank develop their technology for making easier of the work. Modern technology helps to both borrowers and loan provider as it became much easier to provide loans. 

Role of Women in Microfinance

               Founder of Grameen Banks, Mr. Muhammad Yunus addressed at the Australian Business Chambers Forum in Melbourne that any earned credit by women straight spend on the well being of children. They always think about the future. They are concern about such thought that losing money will lead to distrust. But men are overconfident and now their priorities are to enjoy money.

           It is stated on the Grameen website that Grameen discovered that women are more reliable in paying back. Scholars of researches had admitted this microfinance principle that poor women with financial access from MFIs lead to better development of households and families.Financial efficiency of microfinance could be improved if they target the women for financial services.Women's clients' accounts are mostly less associated with, write off loans, risky portfolios and credit loss for IMFs. Dual goals could be achieved by giving microfinancing services to women, number one that women are more trustworthy in paying back loans thus bring efficiency for MFIs and second reason is that lending to women could have long term effects on poverty alleviation as their utmost preference is their children and family.

           (Hofstetter, 2008) studied the customary law related to the participation of women in microfinance. Study found that customers and law are problematic for microfinance enterprises but programs of this microfinance could bring alteration in customs and laws including the empowerment of women. (Fletschner, 2009) identify that emerging countries' law affects the most to women getting access to financial capital.

           ( Stevenson & St-Onge, 2005) research was focused on credit creation for Tanzanian Women and showed the constraints of institutional and cultural to get access to credit and deduced this conclusion via field experiment conducted in Sri Lanka.

           Women are given less opportunity in terms of credit as compared to men. Rate of return is much lower for microfinance capital given to women than men but it does not represent the actual picture of women’s ability, entrepreneurial skills or risk aversion. However, women's privileges are limited to access financial capital but they seemed to be considered much safer loan payers.

           (Bernstein & Seibel, 2011) explained the microfinance and loan payments and explained that women are considered more trustworthy in terms of usage of credit for well being of their families.

Women play a vital role in economic development and particularly poor household development mainly dependent on them. Important discussion needs to be done on women and gender development differences in microfinance. Some researches came up with a game-theoretical model of activity choices. Its findings showed that female empowerment has been nurtured by microfinance organizations. Women's adoption of high productivity activities is being conditioned by access to credit in the informal economy. Such developments decrease the cost of male-controlled activities because of their less involvement in the informal economy.Another study focused on informal practices of women by exploring the complexity and diversity based on survey data held in Senegal, argued that measures could be complemented throught microfinance services that are there to minimize the effects of systemic cause of inequality.  

           Grameen Bank initially make portofolio of men as clients but eventually they start focusing on women clients more than men because of women's repayment history as compare to men clients.

Empirical investigation done by (Hossain, 1988) showed that 81 percent of Bangladeshi women have paid their loans timely as compare to 75 percent of men. One study reported that reported that groups with a higher percentage of repayment are of women and identified that 95% of women repaid their loans compare to men who were 75% out of the sample size.

A well-reputed MFI in Indonesia BRI claimed that their focus level on women clients on repayment had never intense but still they are receiving repayment in a timely manner.

(Sarker, 2001) stated that women's investment strategies are much conservative and cautious hence, their repayment record is quite impressive.

Women could easily come under the pressure of their peers and involvement of recovery managers. Women are more sensitive to verbal hostility by recovery workers because of their reputation and honor matters to them. Women are usually more interested to work closely to their home place that’s why they are much more easier to monitor and track by the MFIs’ managers.They showed that men have ample areas from where they could manage to get credit, it could be formal or informal channels but for women it is hard to find means for financial support that’s why they are more carful in repaying the credit amount to protect their trust level for future loans.

Literature discussed this matter in detailed through empirical studies and theoretical studies that women are much more ideal options for MFIs to do credit financing. As women’ record has been observed more positive in repaying the loan, it means the rate of return is much higher in female loans which leads to efficiency of MFIs.

        In simple words, this factor indicates if there is higher participation from the women workforce, then the growth trend of the "microfinance" sector can see a significant improvement. From the Sri Lankan scenario, initially, the Government started offering the "microloan" to women at high-interest rates

 This (figure 1-4) showns the relationship with the  mirco credit , high interest rate and micr laon and This resulted in violent protests, but the Government managed to set the interest rates as per their affordability, and in those days the other non-banking financial companies started waiving loans to the poorer women Whereas the "Indicator of benefit to the poorest" can determine the benefit of providing the investment to low-income groups of people in the society. This would help to come out from the poverty line and can help to boost the growth of "microfinance" institution to a considerable extent. "Microcredit helped to empower the Sri-Lankan women by" strengthening "the" economic roles" by providing them with a high rate of employment so that they can bring many positive effects in the society

        Nowadays women are contributing to the economic change of the country. With this microfinance is helping for their economic growth and providing a better and sustainable livelihood for their communities and families. Microfinance has the potential to contribute to gender and promote better working conditions for women. The empowerment is applied for the disabled group of people who are usually linked with the vision and equality condition to live in society. The dimension that are helping the women for their empowerment in self capabilities towards their health, knowledge, education, confidence, health, institutional culture and other kinds of resources that are provided to women with better opportunities. The main concept of empowerment of women is to increase the point, what is needed for a woman, which are most needed for women to marginalized in society. Two performances force women from gaining empowerment are aid "donor performance" and financial problem. It is also one of the main problems in the country like Srilanka. Financial problem is one of the major causes in the country, as people usually belong from poor background and women don't get the proper way to utilize their skills and all. For developing the growth of the country many researchers have gone to the root to find out the problem and it has been analyzed that the main problem is on the rural part of the country that is not developed because of some country issues.

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