Abstract:
Most of the household microenterprises take microfinance from microfinance
institution, some household enterprises it facilities use effectively, but most of
household microenterprises it misuse. When household microenterprises misuse
microfinance credits, household microenterprises can't successful. Main objective of
supplying microfinance credit is should be reduced poverty in increasing household
microenterprises. But today economy has not achieved this objective. Therefore, in
this study was conducted to an analysis of the effect of micro credit program on
performance of household enterprises, considering the variables of micro credit
lending terms, training & technologies, networking and performance of household
enterprises.
Data was collected through questionnaires with 130 houseboat *microenterprises that
obtain micro-credit equal or below Rs. 50,000 from Ruhuna development bank,
Sanasa bank and Samurdhi bank situated in southern province. From the estimation it
may be able to conclude that the micro credit program is effective in generating
income, saving, employment and assets for the household enterprises. Therefore
Researcher can conclude that household enterprises performance has increased.
Finally, researcher can conclude that micro credit program(micro credit lending terms,
technology & training services, networking) have high level impact to household
enterprises performance. And also researcher can conclude that micro credit
program(micro credit lending terms, technology & training services, networking)
.
have moderate positive relationship to household enterprises performance. Further
researcher can conclude that there is significant relationship between micro credit
lending terms, technology & training services, networking and household enterprises
performance in southern province.
