Assessing the Impact of Government’s Microfinance on the Economic Dimensions, Rural Entrepreneurship and Sustainable Employment of the Javanrud township, Kermanshah province

Subject Areas : Regional Planning

Erfan Abdi ¹ , AHMAD TAGHDISI ² , JAFAR TAVAKOLI ³

1 - PhD. Student, University of Isfahan, Isfahan, Iran
2 - Assistant Professor, University of Isfahan, Isfahan, Iran
3 - Assistant Professor, University of Razi, Kermanshah, Iran

Received: 2019-12-09 Accepted : 2020-01-07 Published : 2021-07-23

Keywords: Entrepreneurship, Microfinance, Economic Dimensions, Sustainable Employment,

Abstract :

[e-mail]   09127120806
Abstract:
Jobs and unemployment are among the most important economic issues in any country, such a way that increasing employment and reducing unemployment considered as one of the toasted headsets of our societies. So assigning “Microfinance’’ is one of the favorite strategies of scholars and politicians to liquidate poverty and reduce unemployment in different countries. This study was conducted to evaluate the effect of Government’s Microfinance on the Rural Entrepreneurship and Sustainable Employment in Javanrud.
The present study is of applied and descriptive-analytical nature in terms of nature and purpose. The research population consists of all rural people in Javanrud who have used government funds from the karafariniomid Fund and the Agricultural Bank between 2006-2017 years(N:921).The main research tool was a questionnaire validated by the opinions of academic professors and Approved after necessary corrections. The field data collecting's tool is a questionnaire which it's validity was certificated by University masters and experts and it's reliability was approved by Cronbach's alpha. Analysis findings shows getting small found credits has positive effects on stable earning, and establishment of employment and also on reducing production cost; and ease of access to elemental materials. The most correlation was between the amount of received credits and  increased income indicators which it was the rate correlation  /967 also it was /906 on variety of income recourses; improvement of life standards and increasing in the productivity and  make new job opportunity which it was /842.The least conjunction was  ease of getting the credit and low lending rate which it was /252;cooperation with borrowers /265;ease of payment processes /336;and it has effects on using machines by villagers and increasing their assets. The results of Person's conjunction test shows that there is a meaningful and direct connection between governmental small credits and financial aspects. Indeed, governmental small credits at the meaningful level of 0/05 has an important role in making entrepreneurship and stable employment of villagers as one of the main aspects of rural development.
Introduction
Small loans, are triggers Facilitating and developing small businesses, Previous employment consolidation and Increase in new businesses and also Are revitalizing the rural economy by increasing the awareness and knowledge of new business development and create self-employment opportunities. Due to the Rural Development Strategies and Pay special attention to empowerment, reducing rural poverty, reducing migration and the economic importance of rural development, it can be said to create a radical transformation in rural areas It will be practical with economic transformation in it.  Because that motivates to work through Removing barriers to economic growth, improving access to productive resources, protecting villagers will reduce vulnerability and create more economic opportunities, promote living standards and prosperity, and ultimately keep pace with regional and global changes.  That They have a direct relationship with the economic development of rural areas and One way to achieve this Providing financial and credit benefits, in particular micro-credit, and guiding it in the process of rural development. Jobs and unemployment are among the most important economic issues in any country, such a way that increasing employment and reducing unemployment considered as one of the toasted headsets of our societies. So assigning “Microfinance’’ is one of the favorite strategies of scholars and politicians to liquidate poverty and reduce unemployment in different countries. This study was conducted to evaluate the effect of Government’s Microfinance on the Rural Entrepreneurship and Sustainable Employment in Javanrud.
 
Methodology
The present study is of applied and descriptive-analytical nature in terms of nature and purpose. The research population consists of all rural people in Javanrud who have used government funds from the "karafarini Omid" Fund and the Agricultural Bank between 2006-2017 years(N:921). The main research tool was a questionnaire validated by the opinions of academic professors and Approved after necessary corrections. The field data collecting's tool is a questionnaire which it's validity was certificated by University masters and experts and its reliability was approved by Cronbach's alpha. To check that the variables are normal The Kolmogorov-Smirnov test is used and Data were analyzed by means of means comparison tests, Pearson correlation coefficient and regression analysis in SPSS software.
Results and discussion
 To investigate the level of satisfaction of villagers with the performance of government micro credit (As an independent research variable) Has been used since Frequency distribution table and mean comparison test (one-sample t-test). The results of the table show the frequency distribution 22.8% of villagers are satisfied with the performance of government micro-credit at weak and very low levels, 10.7% on average and 66.5% at high and very high levels. Also sample t-test results (Considering the number 3 as the basis of the test) it shows The average calculated with a value of 3.96, Significantly Above average and above average.  Upper and lower bound positive, as well as t-statistics and mean deviation It also confirms that the calculated average is above the average. So it can be said that Satisfaction of villagers in the study area with the performance of government micro credit was acceptable and The reasons for this can be found The impact of these credits on the economic dimension of entrepreneurship and sustainable employment of rural residents of Javanrood. also Analysis findings shows getting small found credits has positive effects on stable earning, and establishment of employment and also on reducing production cost; and ease of access to elemental materials. The most correlation was between the amount of received credits and  increased income indicators which it was the rate correlation  /967 also it was /906 on variety of income recourses; improvement of life standards and increasing in the productivity and  make new job opportunity which it was /842.The least conjunction was  ease of getting the credit and low lending rate which it was /252;cooperation with borrowers /265;ease of payment processes /336;and it has effects on using machines by villagers and increasing their assets. The results of Person's conjunction test show that there is a meaningful and direct connection between governmental small credits and financial aspects. Indeed, governmental small credits at the meaningful level of 0/05 has an important role in making entrepreneurship and stable employment of villagers as one of the main aspects of rural development.
 
Conclusion
The results of the analysis, it shows. Clearly the success rate and impact of micro credit on
Family decision-making, economic and social empowerment of individuals, youth and rural women, heads of unemployed households, employment of other family members and out-of-family rural people and ultimately reduce rural poverty. It is much easier to get micro-credit facilities from the Hope Entrepreneurship Fund and the Agricultural Bank than to borrow from other institutions and banks, with less complexity and administrative bureaucracy and in many cases it does not require collateral and Earnings are in the normal range (4%) That The core features of micro-credits are entrepreneurship and employment sustainability. Analysis of correlation between components Indicates the linear relationship between Creating employment and entrepreneurship, increasing income and saving, and empowering individuals with micro-credit are granted. According to the research findings, Micro-credits have significantly increased education, economic empowerment and created entrepreneurial opportunities in the rural environment and these credits have led to self-employment and the expansion of existing businesses as well as the creation of new ones and Because the Agricultural Bank and the Entrepreneurship Fund of Hope oversee the payment,  implementation and continuity of the project at all stages  Ultimately, this has led to the continuity and sustainability of people's employment and the creation of sustainable entrepreneurship. It can be concluded that the micro-credits paid have a significant impact on the creation of sustainable employment and rural entrepreneurship in Javanrud.

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