Microfinance is considered an important financial instrument to generate
income. The study has focused to ascertain the effect of microfinance on
poverty eradication. For this purpose, the random sampling method has been adopted and
primary data from 368 respondents has been collected from the two main districts of Sindh,
Pakistan. Two different statistical tools have been used to analyze the data. Simple
independent t-test has been used for the analysis of the variance in variables (i.e. livelihood,
business development, income, and employment) before and after the involvements of
microfinance in the business activity of respondents and linear regression test used to find out
the relation between the dependent variable (i.e. microfinance) and independent variable (i.e.
livelihood, business development, income, and employment). It has been ascertained the
p<0.005 and r=0.78 the values show the strong relationship between the dependent and
independent variables and as well as microfinance facility has a positive effect on poverty
1-Sikander Hussain Soomro Professor, Department of Economics, Khairpur University, Sind, Pakistan. 2-Parveen Shah Professor, Department of Economics, Khairpur University, Sindh, Pakistan. 3-Muhammad Saleem Rahpoto Professor, Department of Economics, Khairpur University, Sindh, Pakistan.
Microfinance, Business Development, Revenue, Employment, Socioeconomic Development