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This study was conducted with the objective of investigating the impact of BG MFI services on the livelihood of client households using a combination of cross-section and time series data.
The study has found out that BG MFI client households have improved their livelihood as indicated by the change in livelihood indicators of housing quality, ownership of important household assets ( fixed and movable), and improved their business turnover and profits.
The research finding also shows that, ‘very poor’ client households benefited more from microfinance program in building important household assets, than their ‘not- so- poor’ counterparts.
Further, it was found out that there are varied socio-economic or poverty graduation pathways depending on whether households are very poor or not so poor.
Livelihood improvement for very poor clients is more of asset, while the not so poor clients have improved their business volume (even if the marginal change is not significantly high).
This indicates, BG MFI has a very strong value creation effect on the livelihood of very poor clients than that of not-so-poor clients.
Not-so- poor clients have very limited benefits from the program.
Getachew MekonninEducation:Bachelor & Master Degree in Economics; specializing in rural development and finance.
Profession:Over the last 10 years, Getachew has increasingly specialized in the field of micro finance: market research, product development and training.
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