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| Socio-Economic Factors Affecting Access to Formal Credit by Microenterprises in District Charsadda, Khyberpukhtunkhwa |
Wajahat Hussain, Sajad Ali, Aqeel Yousaf, Israr Ahmad
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Abstract:
The current study has tried to evaluate micro enterprisers socioeconomic characteristics and its impact on access to micro credit. This study has focused on the most vulnerable households in the district Charsadda. A sample of 95 respondents were selected by employing purposive sampling technique. Out of 95 sample, 60 (63%) respondents were access to micro credit whose take loan from bank and micro finance institution (formal). While 35(37%) respondent whose take loan from other sources (informal). The study has collected data from the sample respondent with the help of enumerator through closed ended questionnaire. The data was analyzed through SPSS software version 22. The study employed, Fishers Exact test, cross tabulation and Pearson Rank Correlation for data analysis. The findings of the study revealed that age, education level, marital status and annual income of the respondent have a significant impact on access to credit. While family size shows insignificant association with access to micro credit. Moreover, the socio-economic characteristics were also correlated with the access to credit. The study suggested that government should pledge schemes that would create employment opportunities for the young and lower income group to empower them a stable and trustworthy stream of income. This will open ways for them to get access to microcredit since income enriches access to credit through improvement of repayment capability.
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