Business Microfinancing in the Province of Rizal

Abstract

The study intends to determine the economic impact of microfinance in the Province of Rizal, specifically in the depressed areas in lower Antipolo City. A descriptive method of research was employed to the study in determining the impact of microfinance, especially its contribution/relevance in the households. The respondents were composed of 100 individuals with existing businesses registered in barangays who availed/applied of loans in microfinancing institutions. Findings show that there was a great impact in terms of household, business and society. The study notes differences; the assessment of the respondents varies on the category of business they are engaged in and in number of years in business. In order to improve the microfinance program and the objectives of microfinance institutions, the researcher recommends considering to increase the loanable amount the poor households can avail from microfinance institutions, to increase potential capital and earn bigger revenues, which will help boost household income and spending. Furthermore, microfinance institutions, through the help of the government, should promote sustainable businesses which can carry on operations and would open new level of positions within the business industry. Moreover, the government should consider strengthening its advocacy in encouraging the entrepreneurial poor to engage in micro, small, and medium enterprises to alleviate the economic conditions of the poor households. Microfinance institutions should continue to provide and promote programs or skills trainings that would open new business ideas for households who want to engage in entrepreneurship.