The Impact of Micro-Financial Institutions on Employment in Kosovo

Session

Management, Business and Economics

Description

In general, microfinance institutions are organizations that provide small loans to low-income individuals or family businesses. Microfinance institutions, or MFIs, come in all shapes and sizes. They may differ in scale, experience, legal status, strategies, and budget. These organizations provide financial services to individuals and businesses with financial difficulties. Microfinance institutions aim to stimulate economic activity among those people with low incomes, for whom access to formal banking services is impossible. With the lending activity of these institutions, local businesses began to become more active in the markets, consequently impacting Kosovo's employment rate. This study examined the effect of microfinance institutions on employment levels in Kosovo. The study employed secondary data from the Association of Microfinance Institutions of Kosovo and the Central Bank of Kosovo. The study adopted Pearson correlation and multivariate regression techniques for data analyses. The results showed that microfinance institutions and employment were positively and significantly related.

Proceedings Editor

Edmond Hajrizi

ISBN

978-9951-550-50-5

Location

UBT Kampus, Lipjan

Start Date

29-10-2022 12:00 AM

End Date

30-10-2022 12:00 AM

DOI

10.33107/ubt-ic.2022.419

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Oct 29th, 12:00 AM Oct 30th, 12:00 AM

The Impact of Micro-Financial Institutions on Employment in Kosovo

UBT Kampus, Lipjan

In general, microfinance institutions are organizations that provide small loans to low-income individuals or family businesses. Microfinance institutions, or MFIs, come in all shapes and sizes. They may differ in scale, experience, legal status, strategies, and budget. These organizations provide financial services to individuals and businesses with financial difficulties. Microfinance institutions aim to stimulate economic activity among those people with low incomes, for whom access to formal banking services is impossible. With the lending activity of these institutions, local businesses began to become more active in the markets, consequently impacting Kosovo's employment rate. This study examined the effect of microfinance institutions on employment levels in Kosovo. The study employed secondary data from the Association of Microfinance Institutions of Kosovo and the Central Bank of Kosovo. The study adopted Pearson correlation and multivariate regression techniques for data analyses. The results showed that microfinance institutions and employment were positively and significantly related.