Journal of Small Business and Entrepreneurship Development

To What Extent Micro Lending Institution’s Policy Help to Improve Income and Employment Prospects of Women Startups: Case Study from Jordan
Nebal Al- Maaitah

Abstract
Our descriptive correlational study used Regression analysis to investigate the impact of microenterprises offered by lending institutions on the level of income and job creation of women startups in Jordan. Our independent variables will be policies practiced in lending institutions (lending, profitability, monitoring and following up and non-financial policy). The study used a mixed-method combining between quantitative and qualitative data through questionnaire survey, in-depth interview, published and unpublished reports. A sample of 385 women loan recipients was selected randomly from the leading microlending institutions in Jordan. Our findings indicate a positive impact for lending, monitoring and following up and non-financial policy on borrower’s level of income. It has not been shown any effect of profitability policy on the level of income. We also find that profitability, monitoring and following up and non-financial policy have an impact on job creation. However, it has not been shown any effect of lending policy on job creation. Terms and conditions of loans contribute to providing income security to participants but do not contribute to creating employment opportunities. The current incentive for financial sustainability can trigger mission drift.

Full Text: PDF     DOI: 10.15640/jsbed.v7n1a4