Microfinance and Womens Micro-enterprises: Assessing the Impacts of Microfinance on Business Performance and Standard of Living

This study attempts to investigate the impact of microcredit program on its clients business performance and standard of living. A survey would be conducted on the sample, which purposely be extracted from a microfinance institution’s female clients who own and run microenterprises in Surabaya-Indonesia, to provide sufficient data of selected standard of living indicators. By analyzing the data using both quantitative and qualitative research methods, the study concludes that most of the indicators have significantly changed after the clients received the credit. It also reveals that the microcredit apparently gives a positive impact on the clients’ standard of living. In the case of business performance, it seems that the microcredit could not greatly improve clients’ business performance. These results could be an indication that the credit has not been solely used for expanding their business, but mostly for other purposes.