Bulacan State University – Sarmiento Campus

Kaypian, City of San Jose del Monte, Bulacan

THE IMPACT OF MICRO-FINANCE ON WOMEN ENTREPRENEURS IN

CITY OF SAN JOSE DEL MONTE, BULACAN

A Research Paper by

Ma. Perpetua Arcilla- Serapio

November 2011

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 Abstract

This research analyzes the impact of micro-finance on the lives of women in some district

of San Jose del Monte, Bulacan. Despite the growing number of micro-finance programs in City

of San Jose del Monte, limited analysis of the impact of micro-finance on women has been

conducted. Women in City of San Jose del Monte lack economic opportunities such as credit due

to deep rooted traditional cultural barriers and existing social norms among others. A sample size

of 293 respondents made up of 80 women borrowers from Center for Community

Transformation in Muzon Branch and 213 women borrowers in KASAGANA KA Branch and 1

staff member of Center for Community Transformation and KASAGANA KA office were used

in the study. The results revealed that the majority of the women have experienced positive

changes on their lives through micro-financial opportunities offered Center for Community

Transformation and KASAGANA KA. Some women respondents encountered a wide ranging

risks associated with taking a loan, including business, institution lending methodology and

family constraints.

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 List of Table

Table 1.1 Age Structure, Civil Status Page 27

Table 1.2 Educational Attainment Page 19

Table 1.3 Year joined the program, Type of Business Page 30

Table 1.4 Amount of Start –up Capital, Source of Capital Page 31

Table 1.5 Household diet, Reported Income Page 32

Table of Contents
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Acknowledgement.........................................................................................................................i

Dedication……….........................................................................................................................ii

Abstract…….................................................................................................................................iii

List of Tables................................................................................................................................iv

CHAPTER I

NTRODUCTION..........................................................................................................................1

Statement of the Problem.......................................................................................................2

Hypothesis of the Study....................................................................................................... 3

Significance of the Study………………………………………………………………………….3

Delimitations of the Study.............................................................................................................4

Conceptual Framework.................................................................................................................5

Definition of Terms......................................................................................................................6

CHAPTER II: LITERATURE REVIEW

Foreign Literature.........................................................................................................................8

Local Literature…………………................................................................................................10

Local Studies…………………………………………………………………………………......11

Foreign Studies…………………………………………………………………………………..15

CHAPTER III: RESEARCH METHODOLOGY

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Research design………………………………………………………………………………….17

Design strategy…………………………………………………………………………………..18

Data Collection and Fieldwork Strategies……………………………………………………….18

Analysis Strategy………………………………………………………………………………...19

Population Sample……………………………………………………………………………….19

Population an Sample Size……………………………………………………………………….20

Instrument Used………………………………………………………………………………….20

Sampling Technique……………………………………………………………………..20

Interview…………………………………………………………………………………21

Observation………………………………………………………………………………22

Data Collection Procedures………………………………………………………………23

Type an Nature Data……………………………………………………………………………..24

Data Collection Instruments……………………………………………………………………..24

Data processing and Analysis…………………………………………………………………....25

Statistical Treatment of Data…………………………………………………………………….25

Formula…………………………………………………………………………………..26

CHAPTER IV:

PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA………………………………….27

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CHAPTER V:

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

Summary........................................................................................................................................37

Conclusions....................................................................................................................................40

Recommendations........................................................................................................................ 42

References………………..…………………………………………………………………….. 44

Appendices

Letter……………………………………………………………………………….

Questionnaires………………………………………………………………………

Curriculum Vitae

CHAPTER I

RESEARCH PROBLEM AND ITS BACKGROUND

INTRODUCTION

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 Growing up within this culture where our parents are responsible for their homes.

We are taught that our fathers should work, go to the office, support financially. The decision

makers are the mothers who are taking care of the family and do household chores and making

ends meet. This set-up is no longer true; mothers now are more active in the financial

management of their homes with shared responsibilities they enter into micro-financing activities

to make ends meet. Micro-finance means providing CD members of the society with very small

loans to help them engage in productive activities or grow their small businesses. Like us, many

less fortunate people need and use financial services all the time. They save and borrow, invest in

home repairs and improvements to meet occasional and domestic expenses such as food and

school fees. However, there are some 500 million low income entrepreneurs in the world and

about 5% have access to financial services. Indeed, the financial services available to the less

fortunate people often have serious limitations in terms of cost, risk and convenience. As a result,

over time, microfinance has come to include a broader range of services such as credit, savings,

insurance, etc.

Microfinance institutions are becoming an integral part of an exciting evolution in the

financial spheres of our world in which individuals in poor and developing countries can get

small loans to start businesses. Earlier, the word microfinance referred only to the monetary

assistance that was offered to poor people who otherwise would not have been eligible to get

such financial aids from banks. The major reason for denial by the banks to these small scale

entrepreneurs is that they have no sufficient securities or assets to use as valued collateral.

According to World Vision, "The term microfinance refers to the practice of providing

financial services to people in impoverished countries who have no collateral, credit history, or

access to traditional lending service." Micro-finance institutions manage and administer the loans

and credit programs.

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 Poverty and survival are some of the reasons why we chose this topic. There are

thousands of problems that our country is encountering at the present such as: corruption,

environment problems, drug and crimes, increasing rate of unemployment and falling rate of

literacy, labor exportation and exploitation, gender inequality and a lot more that are caused by

poverty. Despite this situation, it is very interesting on how Filipinos manage to survive on their

daily needs and this is where the role of women is predominantly seen.

Statement of the Problem

The primary problem of this study is to find out the impact of Micro-finance on Women

entrepreneurs in CSJDM, Bulacan.

Specifically, this study sought answers to the following questions

1. What is the profile of the respondents in terms of:

1.1 What is the Age of Women involves in Micro-finance?

1.1 What is the most predominant civil status of women that is most likely to borrow?

1.2 What was the year the respondents started borrowing money from Micro - Financing

agencies?

1.2 What are the businesses that women usually into?

1.3 What is the educational attainment of women in Micro-finance?

1.3 What is the source of start- up capital?

1.4 How much is the amount of start - up capital?

1.4 What is the result of the reported income?

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1.5 Has the household budget in food and nutrition really improved?

(1) Is there a significant effect on the economic lives of women entrepreneur from Micro-finance

businesses?

(2) Does the loan given to the women help the economic needs of their families?

Hypothesis of the Study:

The null hypothesis of the study is:

There is no significant influence between the Micro-finance institutions in the Economic lives of

women entrepreneurs in San Jose del Monte, Bulacan.

Significance of the study

The research aims to analyze and evaluate the impact of small loans on the lives of

women in the City of San Jose del Monte district is accomplished by studying and evaluating the

trend of lives of women’s lives who have been receiving loans from a micro-finance

organization. It is anticipated that at the end of the study this research will provide a balanced

picture of the positive and negative impact from receiving such loans.

For the women entrepreneurs through the help of micro-finance women can get a capital

to start a business in order to give and to satisfy the needs of their family. It will also help to

enhance their capability in handling the business.

The government is a sole player in planning and formulating policies in the country. The

Laws governing financial institutions are passed by the Democratic, and the Bangko Central of

the Philippines regulates the formation and the conduct of financial institutions. This study will

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reveal the importance of such institutions and further the understanding of its importance to

society. Understanding its importance, the government can also be able to provide support

services and strategies to enforce the micro-finance industry in order to reach the economically

active less fortunate women of City of San Jose del Monte.

This contribution will be a milestone for different stakeholders, policy makers and

decision makers at national and international levels who are or will be interested to maintain the

quality of life of these young students. In the end we will be an instrument to help these young

minds decide on what is the correct course or career pattern that will lead them to a happy and

prosperous life.

Delimitations to the Study

The case study presented in this research has methodological shortcomings. The time

period to conduct the research was bounded to two months and this had an impact on limited

sample size and coverage area due to time constraints. Some of the areas were not easily

accessible by using public transport and therefore several areas within San Jose del Monte were

not included in the study. There was a need of a control group of women without micro- financial

services in order to make analytical comparisons within the San Jose del Monte area. The major

aim would be to demonstrate whether there is a substantial difference between the two groups.

The researcher in this study was supported by the knowledge of language. The responses

from the women respondents were influenced by the way the researcher asked the question and

the researchers’ role was not to interpret the expressions from the women’s views, but it was to

take the words as they were spoken and build the concepts from existing theories. Literature

addressing women, micro-finance and micro-entrepreneurs in San Jose del Monte is scanty and

there is a severe lack of statistical information from local and central government offices.

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Conceptual Framework

Describe the Process in which the proponents have to undergo to analyze of what is the Impact of
Micro-finance in Women Entrepreneur in City of San Jose Del Monte, Bulacan.

INPUT PROCESS OUTPUT

INPUT Pr
2 Financial Institutions
in Muzon and Sapang INTERVIEWS
Palay branch. To know if
VIDEO whether the
CCT) INTERVIEWS lending companies
makes a negative
KASAGANA KA OBSERVATIONS
or positive impact
Development Center to the Women
Entrepreneur.

Figure 1.1 Conceptual Framework of the

analyze system

Definition of Terms

Micro-finance Institution (MFI). The term refers to an institution which provides

financial services to low-income clients, including the self-employed. Financial services

generally include savings and credit, and some micro-finance organizations also provide

insurance and payment services.

Micro-credit, Micro-finance, small loans and credit. Micro-credit is the provision of

small loans. According to the Micro-credit Summit in 1997, the definition of micro-credit is:

small loans to very poor people for self-employment projects that generate income, allowing

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them to care for themselves and their families. Micro-finance is the provision of a range of

financial services in addition to credit, such as options for insurance schemes or opportunities to

save. It is, however, a term that is used interchangeably. For the purpose of this study, micro-

credit, micro-finance, small loans and credit will be used interchangeably with respect to micro

financial services.

Micro-entrepreneur. Micro-entrepreneur is a person who is engaged in micro-enterprise

activities. The greatest concentration of the informal sector is on non-farm activities like

commerce, trade, services, manufacturing, and mining.

Informal sector. The informal sector is integrated as individuals or groups of people who

are engaged in legitimate (micro, small or medium scale) enterprises, some of whom may be

regulated by the government but the vast majority are considered to be operating outside the

legal regulations of the state.

Empowerment. In this study, empowerment can be seen as a multi-dimensional social

process that helps women to gain control over their own lives, their families, their communities,

and their society by acting on issues that they define as important. Additionally, empowerment

can be seen as a process that fosters power in women for use in gaining access to resources.

CCT. Center for Community Transformation, CCT Credit Cooperative’s root can be

traced from the Center for Community Transformation, a Christian development

organization organized in 1992. CCT started out as an informal organization of

development professionals who shared the common vision of helping the poor.

KASAGANA KA Development Center. Started at the year 2004.

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 CHAPTER 2

REVIEW OF RELATED LITERATURE AND STUDIES

In this chapter, the literature review is based on the research issues of this study: an

analysis of the impact of micro-finance on women micro-entrepreneurs.

An outline of the organizational structure and operations of CCT and KASAGANA KA is

briefly provided. In reviewing the literature, an attempt was made to identify and analyze areas

which women borrowers experience changes in their lives when they are provided loans for their

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enterprise activities. The literature review also helped to answer the research questions posed in

the study.

FOREIGN LITERATURE

Micro-finance has emerged as a fundamental part of the new development paradigm,

described by the phrase “participation and development.” Many aid donors and Non-

Governmental Organizations (NGOs) are attracted by the tremendous success of the micro-

finance programs. First, micro-finance programs are successfully reaching the poor, particularly

low-income women micro-entrepreneurs. Second, the programs are recovering outstanding

loans, some program recording over 95 percent repayment rates. Third, micro-credit is seen as a

development model designed to reduce poverty and improve self-sufficiency. Fourth, while

micro-credit was purposely designed to reduce and or alleviate poverty, empowerment has

emerged as one of the key objectives of micro-finance programs. Government and micro-finance

institutions perceive women’s incorporation in the market economy will consequently enable the

women to improve employment opportunities and production, accumulate assets, as well as

alleviate poverty and achieve sustainable growth. Furthermore, NGO’s and other lending

institutions intend to facilitate the availability of capital in order for micro-enterprises to grow

and overcome traditional gender bias.

The famed Grameen Bank in Bangladesh, established in 1983, has become an

international model for micro-credit programs as an antipoverty strategy. In Bangladesh alone,

more than four million women receive micro-finance services (Murdoch, 2000; Rahman, 1999).

Programs based on the Bangladesh model have been replicated all over the world; the most

remarkable aspect of the Grameen Bank’s operation has been its high loan recovery rate, in the

range of 98% and above (Jain 1996). High repayment rates are interpreted to mean that women

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are using loans productively and they effectively controlling loans. Other micro-financial

institutions which are considered outstandingly successful in providing micro-financial services

to the poor include Banco Solidário, S.A. (BancoSol) in Bolivia, and Bank Rakyat Indonesia-

Unit Desa in Indonesia (BRI-UD). At present, it is estimated there are about 7,000 micro lenders

who serve about twenty five million micro-entrepreneurs worldwide, the majority being women

in rural areas (Pearls and Phillips, 2001).

Micro-credit programs have designed several features and mechanisms that have

favorably contributed to their success. As noted earlier, the majority of micro-credit programs

have women as main borrowers; in the 1998 survey of 925 member institutions, the Micro-credit

Summit Council of Practitioners reported that about 76 percent of clients were women (Adams et

al, 2000). Analysts have pointed out that repayments rates by women; have led many programs

to target women (Mayoux, 1999). Characteristically “self help” oriented micro-credit programs

have targeted women because women are more likely to invest in caring for the family and

women can contribute greatly to improvements in family welfare, and wider social and political

empowerment (Mayoux, 1995; Ledgerwood, 1999; Pitt and Khandker, 1998). An important

feature of micro-finance development includes the opportunity for borrowers to form joint

liability groups, as an alternative of tangible collateral. Usually loans are small, the first loan size

is averaging US $ 50-100 depending on the country’s socio-economic development. Micro-

finance programs are considered flexible; loan terms are short, 2-6 months at interest rates higher

than most commercial bank rates. Additionally, loan repayments are collected frequently to

ensure close monitoring.

LOCAL LITERATURE

During the last few years, the volume of microfinance activity has grown considerably in

the Philippines and an increasing number of financial institutions have engaged in retail

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microfinance operations. While this sector has been traditionally dominated by rural banks, non-

governmental organizations (NGOs) and finance cooperatives, in 2009 a number of commercial

banks sought entrance into the retail microfinance market like for example the two micro finance

that we choose to study; (CCT) Center for Community Transformation and KASAGANA KA.

However, the idea of accessing small loans for low income people from private individuals is as

old as the recorded history of humanity. Conventional lending institutions are reluctant to assist

micro-enterprise because they typically fail to meet a lender’s criteria. Micro-entrepreneurs,

therefore, have to raise capital by themselves, from family members, friends, and relatives. Some

resort to informal lending such as moneylenders who charge exorbitant interest rates which

increase poverty to the borrowers and they become highly vulnerable to dubious lending

practices. As a result, income raised by women themselves or families and friends is insufficient

to start significant enterprises which are likely to grow quickly.

The Philippines’ microfinance sector is credited as one of the oldest and most active in

the world. While the roots of microfinance activity date back to the early 1900s through

cooperatives, microfinance, as described today, surfaced in the 1980s and was codified into

national law in 1997 with the signing of the Social Reform and Poverty Alleviation Act

(RA8425), and the establishment of both the National Anti-Poverty Commission and the

National Strategy for Microfinance. With approximately 33% of the country’s 92 million

population considered to be living below the poverty threshold, poverty alleviation is one of the

government’s top priorities and microfinance is a primary tool to address this issue. The ultimate

goal of the government’s National Strategy for Microfinance is to create a sustainable private

microfinance market, where the private sector drives market dynamics, such as products and

pricing, and the government’s role is limited to providing an environment which enables the

market to thrive.

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LOCAL STUDIES

Historically, the native women of the Philippines enjoy high socio-economic status. They

could own property, contribute to the economy, even serve as priestesses, or ascend to the tribal

throne (Salazar, 2000).

Spanish colonization which began in 1521 and ended in 1898 relegated the native women

to home and (the Catholic) church. On the other hand, American colonization (1898-1946),

which opened the public schools to women as well as the professions, was not able to raise the

social consciousness of the Filipinos which trapped the women in the double standard of

morality. It took many years of efforts from more gender-conscious women and gender-sensitive

men who were in decision-making positions or in influential organizations to gradually appeal

off the barriers to fuller women’s emancipation.

The suffrage during the American regime succeeded, after a long battle, to get the vote

for the women in the Philippines in 1937. (Aquino, 1994). But while women got the vote, and

more registered women than men actually voted, there has not been a woman’s vote, in the sense

that they have not really gotten certain candidates elected (Tapales, 1993). Nor did the women

run for office. Very few have, such that Congress has only had 10% women (the Senate has

slightly more now at 12.5%). (Aguilar, 1992; Naz, 2002). The party list system has enabled more

women to be represented in Congress At the local level, the percentages of women city and

municipal mayors (2001 election figures) are 13.54% and 13.8%, respectively. Women governors

account for 16.4% of the 79 Governors. (Tapales, 2002).

This favorable occupational distribution does not mean that women were without

economic problems. Although women were eligible for high positions, these were more often

obtained by men. In 1990 women represented 64 percent of graduate students but held only 159

17
of 982 career top executive positions in the civil service. In the private sector, only about 15

percent of top-level positions were held by women.

According to many observers, because men relegated household tasks to women,

employed women carried a double burden. This burden was moderated somewhat by the

availability of relatives and servants who functioned as helpers and child caretakers, but the use

of servants and relatives has sometimes been denounced as the equivalent of exploiting some

women to free others.

The organization under study, CCT Credit Cooperative’s roots can be traced from the

Center for Community Transformation (CCT), a Christian development organization organized

in 1992. CCT started out as an informal organization of development professionals who shared

the common vision of helping the poor. This group believed that real development could be best

achieved by enriching the spirituality of a person. CCT believes that approaches to development

must be holistic and transformational.

The cooperative is one of the three institutions that received technical assistance support

under the Microfinance Sector Strengthening Project (MSSP) together with the Center for

Agriculture and Rural Development (CARD) and Life Bank. The MSSP is a project

implemented by the United Nations Development Programme (UNDP). The objective of the

project is to make the MFI operations of the three institutions efficient and sustainable using the

ASA methodology.

Currently, CCT’s implementing structures include the Center for Community

Transformation, Inc., CCT Credit Cooperative, Visions of Hope Foundation, and CCT Heritage

Tours. CCT Credit Cooperative manages CCT’s microfinance program. CCT formally

transferred its microfinance operations to CCT Credit Cooperative in 2004. The cooperative

18
began its operations in January 2004. The cooperative integrates microfinance into its

transformational programs and services for the poor.

CCT Credit Cooperative received technical assistance on the use of the ASA

methodology under the MSSP. One key feature of this methodology is its emphasis on

individual liability as opposed to group liability. Another key feature of the ASA methodology is

its simple and low-cost microfinance technology.

The cooperative offers a regular loan with a minimum loan amount of PhP4,000 and a

maximum of PhP 30,000. Interest rate ranges from 3.1% to 3.3% per month, depending on loan

term. In addition, the cooperative also offers housing improvement loans to its members.

CCT Credit Cooperative manages 71 branches in Metro Manila, Bulacan, Laguna,

Cavite, Nueva Ecija, Negros Occidental, Iloilo, Capiz, South Cotabato, Cotabato City, Sultan

Kudarat, Saranggani, General Santos City, Misamis Oriental, Davao City, and Davao del Sur.

As of December 31, 2004, the cooperative served 51,624 active clients, 44,877 of whom

are active borrowers. 97.7% of borrowers are women. Its loan portfolio reached PhP 165.3

million.

CCT Credit Cooperative targets poor women, accounting for 97.7% of its active

borrowers. Its average loan balance is PhP 3,683, equivalent to 6.1% of per capita GNP.

CCT Credit Cooperative integrates microfinance into its transformational programs and

services for the poor. Weekly meetings are called Fellowship meetings. In Fellowship meetings,

Bible studies are made, peer advices are given, and loan payments are collected. In addition,

CCT Credit Cooperative is one of the most aggressive MFIs in the Philippines in terms of

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expansion. In 2004, its number of active borrowers increased from 29,397 to 44,877, a growth

of 52.7%.

Aside from providing regular and housing loans, the cooperative also offers micro-

insurance to its members. From weekly payments of PhP 5, members’ beneficiaries are entitled

to receive PhP 30,000 in case of death due to sickness, and PhP 60,000 in case of death due to

accident. Children of CCT Credit Cooperative members that are on their third year as college

students can also benefit from Vision of Hope Foundation’s Study Now, Pay Later Program.

Visions of Hope Foundation manages CCT’s education programs.

CCT Credit Cooperative is an institution with assets amounting to PhP168.2 million as of

December 2004. Outstanding loans at the end of December 2004 reached PhP 165.3 million with

PAR > 1 day of 6.9%. It had liabilities, members’ equity, and statutory reserves of PhP 156.2

million, PhP 8.2 million, and PhP 3.9 million, respectively. The cooperative achieved an OSS

ratio of 122.6% and an FSS ratio of 117.9% in December 2004. (Source: CCT Credit

Cooperative Audited FS 2004 – PAR, Microfinance Council of the Philippines Database – OSS,

FSS)

Major challenges faced by the cooperative in connection with its rapid expansion are

manpower recruitment and the maintenance of a high quality of its loan portfolio.

CCT formally transferred its microfinance operations to CCT Credit Cooperative in 2004.

The cooperative began its operations in January 2004. Cooperatives are authorized by law to

collect savings from their members. The cooperative submits reports to the Cooperative

Development Authority (CDA), the government agency that is tasked to regulate and supervise

cooperatives in the Philippines.

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 CCT and KASAGANA KA are some of the major programs which has engaged its

activities in the providing of working capital for poor women micro-entrepreneurs in San Jose

del Mote. In general, women entrepreneurs who are in the informal sector are largely classified

to be clients of this organization. Women of all social groups, ages, and wealth who are engaged

in the informal sector can access credit from CCT and KASAGANA KA. Businesses vary from

Sari-sari store, basahan making, buy and sell, direct selling, candy making, peanut butter

production and clothing and accessories production.

FOREIGN STUDIES

International aid donors, governments, scholars, and other development experts have paid

much attention to microfinance as a strategy capable of reaching women and involving them in

the development process. The microfinance industry has made great strides toward identifying

barriers to women’s access to financial services and developing ways to overcome those barriers.

A 2001 survey by the Special Unit on Microfinance of the United Nations Capital Development

Fund (SUM/UNCDF) of 29 microfinance institutions revealed that approximately 60 percent of

these institutions’ clients were women. Six of the 29 focused entirely on women. Among the

remaining 23 mixed-sex programs, 52 percent of clients were women.

The study also showed that those programs offering only individual loans or relatively

high minimum loan amounts tended to have lower percentages of women clients. These findings

affirm the importance of designing appropriate products for women. According to USAID’s

annual Microenterprise Results Report for 2000, approximately 70 percent of USAID-supported

MFIs’ clients were women. Considerable variation among the regions was seen, however, with

percentages of women clients ranging from 27 percent in the Near East to 87 percent in Asia. In

Eastern Europe, where USAID has traditionally supported individual-lending programs, the

21
percentage of women clients dropped as low as 48 percent in 19993 before rising to 54 percent in

2000, when USAID began to support more group-lending programs offering smaller loans.

Although the UNCDF study found that larger programs tended to have lower percentages of

women clients, data collected by the Microcredit Summit Campaign found no statistically

significant correlation between the number of very poor clients, 5 served by each institution and

the percentage of those clients who were women. Microfinance institutions around the world

have been quite creative in developing products and services that avoid barriers that have

traditionally kept women from accessing formal financial services such as collateral

requirements, male or salaried guarantor requirements, documentation requirements, cultural

barriers, limited mobility, and literacy. Nevertheless, in a number of countries and areas few or

no institutions offer financial services under terms and conditions that are favorable to women.

Together, these findings confirm that the type of products women’s access to financial services.

They also suggest that much more can be done to serve poor women in certain cultural and

economic contexts.

CHAPTER 3:

RESEARCH METHODOLOGY

This chapter deals with the method used in the study. To collect data necessary to study

the impact of micro-finance to women borrowers of CSJDM. The data collection process started

22
last September 5, 2011. This chapter deals with the research design, Population sample, the

population and Instrument used, method of data collection which will include written and video

interviews and observation , the data collection procedure, and the method of analysis. As

indicated in Chapter One, the primary purpose of the study is to find out, whether small loans

contributed to Women Entrepreneurs. In order to answer the primary question, the following

questions are cited: 1) Is there a significant effect on the economic lives of women entrepreneurs

from Micro-finance businesses? (2) Does the loan given to the women help the economic needs

of their families?

RESEARCH DESIGN

This is a qualitative method and descriptive methods approach. A case study is defined by

Berg (2001) as a systematic way of collecting information about a particular person, social

setting, or a group and to understand how it operates. It involves data collection techniques like

the interview, observation, and documents. Case studies can be exploratory, explanatory, or

descriptive. The type to be used in this study was descriptive.

The design strategy was purposeful sampling, the data collection strategy and Fieldwork

strategy was qualitative data. The study involved investigating women from CSJDM who have

received micro-financial services from the Micro-finance Institutions and officials of the Micro-

Finance Institutions.

DESIGN STRATEGY

The research design strategy that was used in this study was purposeful sampling. The

researcher employed this strategy because she wanted to get an in-depth knowledge of the case

using a small population sample from each of the selected Place in CSJDM. This approach is

23
sometimes called purposive or judgment sampling (Patton, 2002). Patton indicates that

purposeful sampling is used to select information-rich cases for study in depth; that is

participants who possess rich information on the case. The purposeful sampling type that was

used in the study was the maximum variation (heterogeneity) sampling (Patton, 2002). The

problem with the maximum variation sampling is attaining heterogeneity when small sampling is

involved. This problem was addressed by using sixteen communities out of the twenty-four

communities in the District.

DATA COLLECTION AND FIELDWORK STRATEGIES

The researcher employed the qualitative data approach (Patton, 2002). The use of

qualitative data yields detailed and thick description in the case of observation and capture direct

quotations in the case of interviews. The data-collection instruments included observation, and

interviews. The researcher used these two data-collection sources because we wanted to

reconcile what the women and officials said with what is actually happening in the women’s

lives. Patton (2002) has noted that using more than one data collection instrument strengthens

and gives credibility to the study. The use of more than one data collection instrument portrays a

true picture of the case under study. We used this approach because it revealed issues that could

not be raised in others. Studies that use only one data collection procedure is vulnerable to errors

linked to the particular method used.

ANALYSIS STRATEGY

There are five analysis strategies used in case study these are creative synthesis, holistic

perspective, context sensitivity, and voice, perspective and reflective (Patton, 2002). The study

relied on reasoning processes to interpret and structure the meanings that were derived from the

data collected. In this type of analysis, the researcher grouped responses based on her judgment

24
that the responses are similar. The researcher then described this similarity conceptually and

created domains into which responses were grouped.

POPULATION SAMPLE

The study was carried out at CCT branch office located in Muzon and the Kasagana Ka

Development Center located in Sapang Palay ,Bulacan. To be able to reach the women for the

study, the CCT Office and Kasagana Ka Office were contacted. These resulted in the selection

of one of the Barangays of Muzon which is the Pabahay 2000 with 3 phases and the 5 Barangays

in Sapang Palay namely: Brgy. Fatima, Brgy. St. Martin, Brgy. San Pedro, Brgy. Sto. Nino and

Brgy. Sta. Cruz. These communities significantly represent Muzon and Sapang Palay area

because the study involved 2 Microfinance institutions in specific area. Unidentification of

village bank groups in the areas of the study mentioned above and accessibility to the areas using

public transport. Time constraint was another factor which limited the number of village banks

and communities in the study.

25
POPULATION AND SAMPLE SIZE

The study involved officers of CCT and Kasagana Ka Branch, and beneficiaries of CCT and

Kasagana Ka micro financial services. The study involved a total of 293 respondents. This was made up

of 80 respondents who are the borrowers from CCT Muzon Branch who reside in the Muzon, Pabahay

2000. The other 213 respondents are from the Kasagana Ka Sapang Palay branch who resides in 5

different Barangays. We also involved the Branch Manager of the CCT Muzon branch and Kasaganaka

Sapang Palay branch Financial institutions.

INSTRUMENT USED

SAMPLING TECHNIQUE

A purposeful sampling method was applied to select the two Financial institutions included in the

study. The CCT Muzon Branch and Kasagana Ka Sapang Palay Branch Office of CSJDM provided a

list of women borrowers and their loan histories from the Financial institutions selected to the

researcher. The list contained women borrowers and their information on loan history. Those women

selected had been with the group for at least a year or more. The researcher then purposively selected

one women from each community for the video interview and observation. Attempts were made to

ensure fair representation in terms of length of membership with the group, age of beneficiary,

educational level, and types of business, civil status, and availability at the time of interview.

INTERVIEW

47
 Interviews are very important in qualitative research, especially in case studies. They help the

researcher capture direct quotations about people’s perspectives and experiences. There are three forms

of interviews namely, structured, semi-structured, and unstructured Fontana and Frey (2005), but in this

research, the researcher used both structured and semi structured interview. The structured interview was

mainly closed ended questions to solicit demographic information from the respondents. The closed

ended structured interview was used only on the women participants and sought information like age,

size of current loan, type of business, marital status, and number of children, length of time with CCT

and Kasagana Ka, and educational level. The semi-structured interview was used on both officers and

the women respondents. I used the semi-structured form of interview because I wanted to get the

information I needed and at the same time give the interviewees some flexibility to express their

opinions.

We used two different sets of interview guides; one for the manager of CCT and Kasagana Ka

Branch Office (see Appendix 1) and another set for the women (see Appendix 2). The questions for the

office manager centered on criteria for giving loans, the type of help/assistance the organization gave to

the women, and how they ensured that the loans are paid back. They also responded to how often they

interact with the women, and whether they felt that the loans had an impact on women’s lives, what

needs to be done to improve CCT or Kasagana Ka activities etc. There were about six questions in the

interview guide used for the women respondents. The semi structured interview for the women

concentrated on issues of how they get the loan, motivation for taking the loan, what they use the loan

for, assistance they get from CCT or Kasagana Ka officials after they have taken the loan, how they pay

back the loan, impact of the loan on their lives, what can be done to improve CCT or Kasagana Ka

activities etc.

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 Questions were structured in the English language. The interview for the officials was done in

English while for the women borrower was done in Tagalog. This was to enable the respondents to

express themselves well without any language barrier and to feel at home with the interviewer. The

interview guide used for women respondents, appears in the Questionnaire A. The interview guide

consisted of the following items: Section A, number 1 - 4 included the General Information. Section B,

number 1 - 10 included the Client Information. Section C, number 1 - 6 included socio-demographic

data. Section D, with number 1 - 14, included the business of the clients. Section E, number 1 - 3

reflected records. Section F, numbers 1 - 11 included household welfare assets information. Section G,

numbers 1 - 7, included household improvements if any. Section H, numbers 1 - 3 analyzed household

diets and Section I, numbers 1 - 3, included loan use. Additionally, section J included general questions

which prompted the respondents on the issue of program impact and empowerment.

The interview guide used for the staffs appears in Questionnaire B and has two sections. Section

A, number 1-2 refers to the staff General information. Section B, number 1-6 included general questions

which gave an opportunity to the staffs or manager to provide information of the women respondents.

OBSERVATION

In order to cross check some of the information provided in the interview, the researcher

also followed up with observation. The observation was used only on the women participants. The

observation was done after the interview. Out of the two hundred ninety three participants, the

researcher observed only one of them. The person observed were based on availability of time, the

willingness of the participant to allow the researcher into their homes and businesses. The researcher’s

role was to observe, listen, and communicate as well as a range of other forms of being, doing and

thinking. It was possible to observe the nature of their businesses and living condition in their homes. At

49
this point it is possible to observe socio-economic status of the women under study by looking at the

nature and state of their houses, whether permanent or not. In addition it is possible to check on

household assets and the respect and command the women had within the household. This approach was

most likely to assist the researcher in collecting data in a “naturally” or “situational” or at least in a

contextual setting (Mason 2002).

DATA COLLECTION PROCEDURES

The researcher obtained research approval from each of the Financial Institutions which is the

CCT and Kasagana Ka Office before embarking on the study. This is a requirement before undertaking

any research, which involves human subjects to ensure that ethical procedures are followed. We wrote a

letter to CCT and Kasagana Ka for use of their organization for the study. After their approval, the first

thing was to get information from where CCT and Kasagana Ka operates. The officials went to their

communities and informed them of the intended research. A week later the two Institution officials took

us to the various Barangays and subdivision to meet the women. We explained the objective of the

research to them in Tagalog and asked for their consent to participate in the study. They willingly agreed

to participate. Giving explanations concerning the research gave an opportunity to build trust and led to

openness during the interview.

After this meeting, the researcher selected ten women and tried out the interview guide on them.

The interview guide was tested in the field in order to ensure it will help the researcher get the needed

information. Slight modifications and additions were made after the try out. After the try out and the

necessary modifications, the interviewer contacted the real subjects and fixed times for the interview.

The time fixing was based on the group meeting time. This made it easier to get them for the interviews.

During their group meeting, we met those selected for the study to fix the time for the interview. During

the interview, we asked permission from the interviewees whether I could take an interview to one of

50
them on the front of the Camera and they all agreed. Though the women insisted that we should use their

real names because of what they have got from the institutions, for confidentiality reasons we did not

use the names. The time required to administer one interview guide was approximately 30 minutes.

Taking notes during the interviews and observations provided additional material for the study.

Additionally notes gave an opportunity to keep track of quotations made by women borrowers.

TYPE AND NATURE OF DATA

Primary and secondary data sources were used in the study. Primary data was gathered from the

women borrowers of CCT and Kasagana Ka from selected groups through observations and interviews.

All interviews were guided by an interview schedule during group meetings. The researcher collected

secondary data from borrower’s files, books, journals and other documents available at the organizations

offices.

DATA COLLECTION INSTRUMENTS

The researcher used three main types of data collection procedures. These are interview and

Video interview and observation.

DATA PROCESSING AND ANALYSIS

51
 Patton (2002) for instance, mentions different forms of analysis, which include holistic

perspectives, context sensitivity, voice, perspectives, and reflexitivity, and inductive analysis and

creative synthesis. The analysis strategy the researcher used in the study for the data collected is the

inductive analysis and creative synthesis. The researcher looked at the themes emerging from the data as

she coded them and then put them into conceptual categories in a way and described what was

happening. The researcher then re-examined the categories identified to see how they are linked. Lastly,

the researcher translated the conceptual model into a story line to give meaning to readers. The

numerical information in the study was described qualitatively.

STATISTICAL TREATMENT OF DATA

Data gathering in the form of responses to supply-type items were content-analyzed in terms of main ideas and a

collection of these ideas will be made:

Frequency Frequency is the organization of value in descending order that showed the number of occurrences
each value was obtained.

Percentage. Percentage is the proportion of frequency over the sample size multiplied by

100.Frequency percentage will be use to answer the first part of the questionnaire which is

the profile of the respondents.

Formula:

52
 P= x 100

Where:

P = Percentage

f = Frequency

N = Total number of respondents

CHAPTER 4

Presentation: Analysis and Interpretation of data

53
 The data gathered by the researcher has been tabulated, analyzed and interpreted to get a

meaningful conclusion about the data.

I. Respondent’s Profile

As background for the analysis, the profiles of the respondents were presented. It included the

age, civil Status, Educational attainment, Year women respondents joined the program and the type of

Business they have.

Table 1.1

1.1 What is the age of Women involved in Micro-Finance?

1.2 What is the most predominant civil status of women that is most likely to borrow?

Age structure and Civil Status, Using frequency and percentage, the results in Table 1.1 showed

that out of 293 respondents, 155 or 52.90% are 37- 41 years old, 27or 9.21% are 32 -36 years old, 25or

8.53% are 27 - 31 years old, 15 or 5.11% are 42 - 46 years old, 13 or 4.44% are 47-51 years old, 23 or 7.85% are 52-

56 years old, 19 or 6.48% are 22-26 years old, and 15 or 5.46% are 51-61 years old.

54
 In this figure most of the women with the age of 37 – 41 are the highest participants of age structure .the

explanation for this is most of the women are married and they have to support the education of their children since their

husband is the one who works for their family. The mother probably thinks of some alternatives to help for their expenses.

The marital status of the respondents. The results are also indicated that the majority of the respondents

(73.37%) were married. This showed that women with household responsibilities were most likely to

secure loans. It can also be assumed that married women are most likely to be involved in micro-

enterprise activities, in part, because (37.20%) of the women got initial capital from husbands. So it is

fair to assume these married women were most likely to get support in terms of capital and ideas from

their husbands. And it also goes with the belief that married women are considered to be more

responsible and more unlikely to renege on their loans than younger women who have never been

married. This was pointed out by some of the members during interviews when they were complaining

about the default rates on their loans. Some of these members pointed out those unmarried and single

women can just pack overnight and leave the area without anybody noticing.

Table 1.2

1.3 What is the educational attainment of women in Micro-finance?

55
 Educational Attainment ,Table 1.4 shows that the majority of respondents received a primary level of

education which represented 26.69% of the sample. The level of education tends to determine where one

will work. Women’s participation in micro-entrepreneurial activities was partly influenced by low levels

of education, which stimulated the development of women’s competency including entrepreneurship.

This was supported by Lugalla (1995), who commented that due to the fact that most women have a

primary school level education, they tend to be engaged in the activities which need minimal skills. This

finding also is confirmed by Kibas (2001), who indicated that the majority of micro-enterprises are

conducted by people who have primary level of education.

Table 1.3

1.4 What was the year the Respondents started borrowing money from Micro-financing agencies?

1.5What are the business that women usually into?

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 Year joined and Type of Business, Using frequency and percentage, the sample included

respondents who have enrolled in the program from 2002 to 2011. The percentage of the respondents

who received loans in a particular year ranged between 3.07% and 53.92%. Table.1.2 showed that in the

year 2007 represented the highest participation in the program (53.92%) and that comparatively, in the

year 2002 had the lowest participation (3.07%).

The majority of the respondents (83.27%) were engaged in the Merchandising Business followed

by Services (11.60%) then Transportation (3.07%) and Manufacturing (2.04%).

A possible explanation why women micro-entrepreneurs are concentrated in Merchandising

could be that the needed of start-up capital for Buy and Sell is relatively low. That means women micro-

entrepreneurs can easily secure initial capital from personal savings, husbands, friends and relatives.

Additionally, women want to involve themselves in business ventures such as home based enterprises,

which will allow them enough time to attend to other household activities

Table 1.4

57
1.6 What is your Source of capital?

1.7 How much is the amount of Start-up capital?

Using frequency and percentage, the results in Table 1.4 showed that out of 293 respondents, 109

or 37.20 % said they got the start-up capital through their husbands, 80 or 27.30% said through their

own income, 54 or 18.43% said through loan, 50 or 17.06% said through the members of their family.

Whereas in this case, women may also be dependent to their husbands’ income for start-up capital

however invests these amount through small businesses to have an extra income. And their respective

loan is to have a sufficient fund for their businesses.

Using frequency and percentage, the results in Table 1.4 showed that out of 293 respondents, 200

or 68.25% had their start-up capital for as low as 1,000 – 12,999, 39 or 13.31% had theirs 13,000 –

24,999, 18 or 6.14% had 25,000 – 36,999, 11 or 3.75% had 37,000 – 48,999, 10 or 3.41% had 49,000 –

60,999, 9 or 3.07% had 61,000 – 72,999, 3 or 1.02% had 73,000 – 84,999, 2 or 0.68% had 85,000 –

96,999, 1 or 0.34% had 97,000 – 108,999. This figure clearly means that most of women used or

invested their loans to small businesses and not with their personal expenses.

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 Table 1.5

1.8 What is the Result of the Reported Income?

1.9 Has the Household budget in food and nutrition really improved?

Using frequency and percentage, the results in Table 1.5 showed that out of 293 respondents, 218

or 74.40% said that their reported income said to be increased, 71 or 24.23% said that their income

stayed the same, 4 or 1.36% said that they don’t really know and none of the respondents answered that

it has decreased.

The combined gross income of all the members of a household who are the older of the

family. Alternatively, household income is the combined income of all members of a household who

jointly apply for credit. Which is the reported income of the family is increase because of the loan that

they get from the MFI.

Using frequency and percentage, the results in Table 1.5 showed that out of 293 respondents, 211

or 72.01% said that their household has been improved, 79 or 26.96% said that their household has

stayed the same, 1 or 0.34% said that it has worsened and 2 or 0.68% said that they don’t know.

59
The first question in the statement of the problem needs of the women’s family improved. Most of the women

responded positively which proves that the development and betterment of their families was the direct beneficiaries

thereof. was:

(1) Is there a significant effect on the economic lives of women entrepreneur from Micro-

finance businesses?

Respondents in this study felt that loans had a positive impact on their lives, because they

saw an increase in their incomes, they had an opportunity to save money, they could contribute

to children’s education, and they were better able to purchase household assets. Additionally,

they were able to make improvements in household diet and were able to receive appreciation

from family members. Most women respondents reported that they felt empowered because their

self-confidence was promoted, leading to an enhanced ability to exchange and learn new ideas

from fellow group members. Others have taken responsible social positions in their

communities.

The second question in the statement of the problem was:

(2) Does the loan given to the women help the economic needs of their families?

The majority of the respondents expressed that program participation had a positive impact and

thus enhanced their empowerment. By accessing loans from the CCT and KASAGANA KA they have

seen improvements in their lives, within the household and in the community at large. It was apparent

from discussions with women respondents that they saw the financial support they received from CCT

and KASAGANA KA branch as means to improve the well- being of the entire family and not just to

themselves.

60
the use of getting loans from micro-finance institutions can be used to finance education of children, to

meet needs such as health problems and other expenses to invest or expand businesses. Normally,

women keep this small amount of savings at home for immediate use, if a child falls sick for instance.

The respondents felt empowered due to the fact that they had a substantial contribution towards the

education of their children. The respondents believe the ability to pay for basic school needs, such as

school uniforms, exercise books, pens/pencils, bus fare and lunch (since children spend almost nine

hours in school) relieved them from the tensions and worries of how to pay for their children’s

education. The possible explanation for this could be the fact that these women have realized the

importance of investing in education as a form of upward mobility, which became easier for their

families to achieve with the assistance of the additional income provided from their micro-loans.

Respondents felt that the ability to purchase assets, such as household assets and plots of land for

building houses greatly improved their quality of life. Some of them have built their own houses and

have been able to do a number of home improvements. This observation is important because other

studies have observed that women are more likely to spend their income on household assets. The

majority of the women respondents also reported an improvement in their household’s diet; they noted

that the quantity of food increased and they were able to buy more food than before receiving the loans.

The ability to make protein choices such as fish, meat and poultry was also mentioned.

The improved status of the respondents in the families has been appreciated by their

family members and by their partners. The respondents believe that because they were contributing to

the well-being of the family and increasing the family’s income they received better treatment. This

suggests that the level of women’s economic contribution to the family may be important in building

relationships within the family. One woman from the CCT pointed out that the loans made a big

difference in her house. She said:

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 My relationship with my children is very good and they are all proud with my achievement, it is

as if the whole family is taking a loan from CCT. Before I had taken a loan, every time my

children asked me for school money I had none. I was always telling them to go ask their

father… But now it is me who is providing them with school money and they are excited

because they are sure to have lunch money.

When discussing the group lending methodology, some respondents believe they learned a lot

through group interactions and through exchanging ideas with fellow members. One member

commented proudly on the success of her fruit juice business:

I used to make passion juice but my customers started to complain that the juice was too diluted and

it did not taste nice. Of course I was diluting the juice because of the high price of passion fruits. When I

discussed this with my group members, they proposed the idea of mixing the passion juice with

mangoes-since mangoes were cheaper and mostly available. Now I make the best juice and my

customers are not complaining anymore!

Interviews with CCT (Center for Community Transformation) Muzon branch Manager and

KASAGANA KA Sapang palay Branch Manager

The interviews for the Loan Officers and the Manager centered on criteria for giving loans, the

type of help/assistance they give to the women, and how they ensured that the loans are paid back.

They also responded to how often they interact with the women, and how they feel the impact of the

loans on women’s lives, what needs to be done to improve Financial institutions activities.

To the question “Whether they feel there is an impact of the loans on women’s lives” Both managers

from CCT and KASAGANA KA office answered that they felt the loans had a positive impact on

62
 women’s lives. However, they acknowledged that the women borrowers are faced by a number of

challenges.

A loan officer from KASAGANA KA who has been with the organization for seven years had this to

say:

I have met many women since I joined KASAGANA KA … I have seen dramatic changes

among the women. Their lives have simply changed because of the loans. I have visited homes

before accessing loans and after receiving loans and I have witnessed changes.

Another Loan Officer from CCT added:

The women themselves are proud and appreciate the loans a lot. They talk about the positive

changes in every meeting…they could go on and on with their stories. They would tell you that

they bought a sofa set, a plot, they would talk about building a house, they would talk that they

sent their children to school…For example in PABAHAY 2000 Ph. 1 , most women have built

houses.

In general the Loan Officers felt that the loans help a lot to boost the capital of the women and in result

the women get more income. In return they are able to accumulate assets and cover other expenses. The

loan officers mentioned the point that these women get a certain amount of money at once which is not

easy to get from other source, and this definitely helped them to solve their problems.

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 CHAPTER 5

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

This chapter summarizes the information obtained from the study. Conclusions are drawn and

finally suggestions are made regarding micro-finance programs. The main instrument used in the study

was an interview guide designed to capture information from the respondents. A sample size of 293

respondents; 80 women borrowers from the Center for Community Transformation Muzon branch and

213 from KASAGANA KA Development Center Sapang Palay Branch Office were used in the study. A

qualitative research method was employed and purposive sampling was adopted for the study. The

primary research question that guided the research was whether small loans contributed to women

entrepreneur. In order to answer the primary question, the following questions were posed:

64
 (1) Is there a significant effect on the economic lives of women entrepreneur from Micro-finance

businesses?

(2) Does the loan given to the women help the economic needs of their families?

SUMMARY

The overall objective of the study was to analyze the impact of micro-finance on women

entrepreneurs in the CSJDM, Bulacan. More specifically, the study identified the factors that resulted

from women’s empowerment and how these factors had clearly been influenced by the opportunity to

receive loans. Factors identified were that the women respondents felt important in their lives, at the

family level and in the community as a whole. The women acknowledged that they had gained

capacities to control, access, and develop the loans they had received from CCT and KASAGANA KA.

In this study, empowerment was based on the respondent’s perspective and the study attempted

to report the respondents’ voices as much as possible. Staff members and the managers from Muzon and

Sapang Palay Branch Offices were interviewed to describe and identify qualitative changes that were

brought to women borrowers by accessing loans from CCT and KASAGANA KA. Secondary data and

records from the CCT and KASAGANA KA Branch Office were also reviewed for this study.

Furthermore, the study seeks to identify loan control, loan funded activities, loan use pertaining to the

women’s enterprises.

The findings indicated that most of the micro-entrepreneur loans accessed from CCT and

KASAGANA KA brought positive changes to the lives of the these women borrowers who felt

empowered by the said program. The study revealed that some of the factors that contributed to

women’s empowerment were: an increase in income, ability to save and accumulate savings, and

65
contribution towards their children’s education. Additionally, women felt empowered because they

acquired an ability to purchase household assets and were able to improve their household diet. As a

result, women improved their social status, self-esteem and they gained more confidence. Members of

the household and the community viewed the women differently and appreciated for their contribution

to their families by commenting on their well being. On the other hand, some of the women respondents

indicated that the loans had little positive impact and some said the loans had not done anything

meaningful for their lives. Some of CCT and KASAGANA KA staff confessed they have assessed the

impact of the loans on individual level of the borrower. In so doing, they found that women who have

significantly experienced positive changes to their lives and on the other hand, there are women who

have experienced some negative impacts from borrowing.. The study indicated that to a larger extent

husbands play a role in loan funded activities. The majority of the women secured their initial loan

capitals from their husbands and their husbands were also consulted on the usage of the loans. On the

other hand, most of the women declared that they were sole proprietors of their businesses activities.

It is widely presupposed that low income people get loans for their businesses, make repayments

out of profits, the businesses will grow, and in turn a larger number of micro-entrepreneurs will be lifted

out of poverty and be empowered. In this study it was noted that not all the respondents put the full

amount of their loan into their businesses. In some cases, respondents used the loans to make

repayments, to buy assets, put aside some money as security if their businesses ever went bad, while

other respondents used the loan money to pay school fees for their children. Furthermore, the findings in

the study confirmed the need for credit and their willingness to pay back loans. During the period of the

study we found that the majority of the women paid their loans on time and showed their willingness to

do so. In addition thereto, these findings confirm low income clients are ready to save if the structures

and facilities are in place to securely maintain their savings. The findings correct earlier views by formal

66
financial institutions that the poor cannot use credit effectively, do not have the capacity to repay loans,

cannot afford to pay high interest rates, and do not generate enough income to enable them to save.

Upon mobilization of savings, low income clients can benefit by having a safer place to keep their

money.

The analysis of critical constraints revealed that women respondents faced business, family

constraints, and institution-related. It appears that major concerns were raised by the women regarding

institution-related constraints including issues on joint liability, interest rates, weekly meetings, grace

period, and loan terms. The interesting fact that emerged was that none of the women complained about

government policies. Possible explanation could be that the characteristics of micro-enterprises which

are normally economic activities are subjected to minimal or no regulation, and normally they operate

outside government controls. It was observed that these women were to a larger extent operating within

their homesteads or roadsides and as vendors who had no permanent business location.

CONCLUSION

The study is able to provide an answer on the total effect of micro-finance to women’s lives. The

women respondents are motivated by the fact that they can see positive changes in their finances,

especially those changes they considered important in their lives such as their families’ welfare. By

participating in the MFI Program, the women’s self-esteem and confidence has increased due to access

to more income. Based on the study’s findings, micro-finance has positive impacts on people’s lives. A

lot of research still remains to be done regarding how it impacts people’s lives. In turn, the micro-

enterprises activities’ have progressed and enhanced women’s empowerment within households,

communities and other improved factors such as education, nutrition, health and lender’s abilities to

accumulate assets. However, on the other hand, the question of what is important in the women’s lives is

not enough to assume that the women are empowered. When discussing the issue of empowerment in

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Chapter Two, it supports the belief that micro-credit programs are making an effort for women’s

empowerment in their assessment of two credit programs in Bangladesh. Additionally, Hashemi et al

(1996), within the family, political and legal awareness, and involvement of political campaigning

describe eight indicators on women empowerment including mobility, economic security, ability to

make small purchases, ability to make larger purchases, involvement in major household decisions, and

relative freedom from domination and protests.

At an aggregate level, it is assumed that the micro-finance sector has involved the participation of

the majority of people who have small businesses, particularly marginal groups, including women that

had been previously not considered as potential lenders by lending institutions. The women in this study

would have otherwise been left out by formal financial institutions because they lack certain

characteristics required such as collateral. This study does not suggest that if these women were left out

by formal financial institutions, they would not have been empowered. Hopefully, future research will

explore in-depth the conditions of women who have not received credit. Micro-finance is especially

important as observed in the study and beneficial to borrowers who are willing to use the loans

efficiently and productively. It can be established from the study that the majority of the positive

outcomes that resulted from the loans brought about improvement in financial capabilities for

household consumption, children’s education and other financial needs. Likewise, by providing

healthcare and improved nutrition to the members of the household the women relieve themselves from

burdens of taking care of the sick and therefore, they can spend ample time on improving and

maintaining their businesses.

Research on the differential impacts of micro-finance in CSJDM is very limited; there is a strong

need for further exploring the subject. Many micro-credit programs have started to give loans to women,

particularly NGOs, formal financial institutions, and cooperatives, but analysis of members’ benefits has

68
been neglected. Assessing and making comparisons on the impact of micro-finance to women

entrepreneurs within San Josenos is difficult, and therefore, the researcher had to make comparisons

with studies done elsewhere in developing countries in Asia and Latin America. It is important to note

that socio-cultural background, the study locations and the methodology used in the study may have an

influence on the findings of this study. The findings within a single entity such as MUZON and

SAPANG PALAY District and within a limited period of time, could be misleading. However, it is still

possible to draw general conclusions from the present study on the impact of micro-finance on women.

Further research could provide the above considerations more information to analyze and may offer

other information about women’s participation in micro-finance programs.

Giving women opportunity to form groups and work together, while institutions are minimizing

costs is a strategy that micro-finance organizations have designed. Groups have given low-income

women who have no collateral, a chance to borrow. There is a need to study the joint-liability of groups

and reveal the efficiencies and performances of such groups. For example in this study, constraints

pertaining to group responsibilities occurred when incorporating members who had relatively big loan

sizes with members who had small loans. It was pointed out by some women respondents that this type

of arrangement destabilized the group whenever a member with a big loan failed to bring her repayment.

It is crucial therefore to study how this factor into micro-lending practices. While this study did not aim

at studying the following: growths of the women respondents businesses, and whether micro-finance

interventions can reduce poverty and if increase of incomes by accessing loans is sustainable. Along

these lines, it is important to study the growth patterns of the businesses in- depth, including household

and the business cash flow patterns which can reveal changes in ones’ household and their business

enterprises as well. It is also vital to study sustainability and empowerment because this may be the only

way to ensure a long standing impact of women borrowers’ empowerment.

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RECOMMENDATION

During the last few years there has been remarkable success for micro-finance institutions in terms

of repayment and outreach. This has led to a philosophical belief on dealing with the poor that visualize

micro-credit as an effective way of eradicating poverty and empowering women. However, further

analysis indicates that credit alone is not a panacea for poverty and is not the only way of empowering

its borrowers. Some studies done in Africa have failed to show clearly how micro-credit has benefited its

borrowers (Buckley, 1997). Further analysis points out that the successes of micro- finance institutions is

because they have been able to devise ways of reaching and supplying low income populations with

capital for investment in their enterprises and opportunities to save. Conversely, there are several factors

which have to be addressed and incorporated into giving credit to make programs more effective. Some

of the factors include MFIs lending methodologies, working environment, gender inequalities,

government policies and financial structures.

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 Bulacan State University
Sarmiento Campus
Kaypian Rd. City of San Jose del Monte, Bulacan

INTERVIEW SCHEDULE FOR WOMEN RESPONDENTS

Section A
GENERAL INFORMATION

1. Client identification #___________________ 3.Community_____________________

2. Name of Interviewer____________________ 4. Date of interview________________

Section B
CLIENT INFORMATION

1. Name of group__________________ 6. Group's current loan cycle_________________

2. Date joined the program__________ 7. Month's in program______________________
3. # of loans taken_________________ 8. Is this client delinquent? Yes No
4. Amount of first loan_____________ 9. Amount of current loan___________________
5. Cumulative value of all loans taken__________ 10. Current savings amount_________
11. Did you receive any formal training before receiving the loan? __________________

Section C
SOCIO DEMOGRAPHIC
1. Gender of client ______
2. Age of client ____
3. Marital Status Married Separated/Divorced Widow Single
3. Years of school completed _________________________________________________

71
5. How many school age Pre-primary Primary Secondary Higher
children go to school?
Level
# of children Private Public Private Public Private Public Private Public

6. How many people in the household are engaged in work that generates income?
____________________________________________________________________________________________
________________________________________________________________________________

Section D
BUSINESS
1. Type of business ________________________________________________
2. Year started business____________________________________________
3. Source(s) of start-up capital_______________________________________
4. Amount of capital at start____________ Present__________
5. Rent amount per month on the business premises______________________
6. Number of people who work in the business None Full time Part time
7. Daily/Weekly/Monthly sales_______________________ Profit __________
8. Daily/ Weekly/Monthly purchases__________________________________
9. Savings_______________________________________________________
10. How do you source your products/goods? __________________________
11. Who owns the business? Primarily your own Primarily household activity Other person than
household member ________________
12. Reported income Increased Stayed the same Decreased I do not know
13. Since you received the loan, have you done any of this?
• Added new products_______________________
• Hired more workers_______________________
• Sold in new markets_______________________
• Improved product quality___________________
• Developed a new business___________________
• Reduced costs____________________________
• Bought stock in bulk_______________________
• Purchased small tools______________________
• Purchased bigger working tools______________
• Purchased transport facilities________________
• Invested in business site; building, furniture, utensils________
• Other____________________________________________________________

Section E
RECORDS
1. Did you keep records before receiving the loan? Yes No I do not know
2. Do you keep records now? Yes No I do not know
3. Do you have any personal cash savings (bank account) in case of emergency? Yes No I do not know

72
Section F
HOUSEHOLD WELFARE ASSETS

Item Do you have the following items in your Did you buy the items with Was this item acquired
household? your own funds? during the credit term?
1. Radio
2. TV
3. Household assets;
4. Jewelry
5. Bicycle
6. Sewing machine
7. Stove
8. Refrigerator
9. Motorcycle
10. Car
11. Others

Section G
HOUSEHOLD IMPROVEMENTS

Yes No Not Observations and Comments

sure
1. Housing repairs
Roof, wall, floors
2. Expansion – Extra room, shed
3. Improved water system – tap water

4. Improved sanitation – drainage,

latrines
5. Installed electricity

6. Installed telephone
7. Others

Section H
HOUSEHOLD DIET
1. Has it improved Improved Stayed the same Worsened I do not know
2. If improved Average quantity increased Able to buy more basic food stuff
Able to buy dairy like milk and eggs Able to buy meat and fish Able to buy vegetables I do not
know

73
3. If worsened how______________________________________________________________

Section I
HEALTH CARE
1. Where do you and your family get treatment when you fall sick?
Health_______________________________________________________________
Care_________________________________________________________________
Hospital______________________________________________________________
Over the counter________________________________________________________
Traditional medicine_____________________________________________________
Other_______________________________________________________________

2. Is there anybody in your family who has a long time illness? ___________________

Section J
LOAN USE
1. How did you get the information about loans? ________________________________________________
2. Did you make the decision of joining CCT alone? _______________________________________________
3. How did you use the loan? ________________________________________________________________
4. Why? ________________________________________________________________
5. Who made the decision of loan use?
____________________________________________________________________
____________________________________________________________________

Section K
GENERAL QUESTIONS
1. How did the loans change your status?
In the family ______________________________________________________
With your partner __________________________________________________
Community ________________________________________________________
The same _________________________________________________________
2. Has your self confidence promoted demoted I do not know
3. If yes, in question 3, what are they? _______________________________________
4. What is the effect of group methodology on women micro-entrepreneurs?
____________________________________________________________________________________________
______
5. Overall impact of small
loans_______________________________________________________________________________________
_____

74
 Bulacan State University
Sarmiento Campus
Kaypian Rd. City of San Jose del Monte , Bulacan

INTERVIEW SCHEDULE FOR STAFF MEMBERS, CIPEEMU

Section A
1. Staff identification #___________________
2. Year joined the Organization______________

Section B
1. What techniques do the Loan officers use to recruit women in the program?
_________________________________________________________
________________________________________________________________________
__________________________________________

2. Do the Loan Officers see a motivation from the women in accessing loan from the
program?
_________________________________________________________
_________________________________________________________
_________________________________________________________

3. Have the small loans have an impact on the women? A re women empowered?
_________________________________________________________
_________________________________________________________
_________________________________________________________

4. Do the women use the loans for businesses activities?

________________________________________________________________________
________________________________________________________________________
___________________________

5. What are the general observations in terms of repayment, attitudes and

behaviors, and group members’ relationships?
________________________________________________________________________
__________________________________________
6. How can CIPEEMU improve its services to women borrowers?

75
 Bulacan State University
Sarmiento Campus
Kaypian Rd. City of San Jose del Monte , Bulacan

INTERVIEW SCHEDULE FOR STAFF MEMBERS, KASAGANAKA

Section A
1. Staff identification #___________________
2. Year joined the Organization______________

Section B
1. What techniques do the Loan officers use to recruit women in the program?
_________________________________________________________
________________________________________________________________________
__________________________________________

2. Do the Loan Officers see a motivation from the women in accessing loan from the
program?
_________________________________________________________
_________________________________________________________
_________________________________________________________

3. Have the small loans have an impact on the women? A re women empowered?
_________________________________________________________
_________________________________________________________
_________________________________________________________

4. Do the women use the loans for businesses activities?

________________________________________________________________________
________________________________________________________________________
___________________________
5. What are the general observations in terms of repayment, attitudes and behaviors, and
group members’ relationships?
________________________________________________________________________
__________________________________________
6. How can KASAGANAKA improve its services to women borrowers?

76
 REFERENCES

GOOGLE SOURCE

Chapter 1

www.answers.com › ... › Business & Finance

www.investopedia.com › Dictionary –

blogs.cgdev.org/open_book/2010/10/what-is-microfinance.php

www.worldvision.org.sg/st_visionfund09.php

http://www.opportunity.org/our-work/where-we-work/microfinance-in-asia/microfinance-in-

philippines/

http://www.microfinancegateway.org/p/site/m/template.rc/1.1.4528/

http://countrystudies.us/philippines/44.htm

www.microcreditsummit.org/.../about_the_mi...

Chapter 2

http: www.cct.org.ph//countrystudies.us/philippines/44.htm

Chapter 3

Patton, M.Q. (2002). Qualitative Research and Evaluation Methods. Thousand Oaks,CA: Sage.

77
Qualitative Research Methods for the Social Sciences:

Amazon.ca ...http://edis.ifas.ufl.edu/pdffiles/fy/fy39200.pdf

http://www.gifted.uconn.edu/siegle/research/Samples/purposivesampling.htm

78
 CURRICULUM VITAE

Name: Maricar C. Bandol

Age: 23

Address: Francisco Homes III Brgy. Muzon, City of San Jose del Monte, Bulacan

Date of Birth: May 6, 1988

Place of Birth: Phase- O Francisco Homes I San Jose del Monte, Bulacan

Civil Status: Single

Citizenship: Filipino

Religion: Born Again Christian

Contact #:

Email Address: [email protected]

Father: Rustom B.Bandol Occupation: Driver

Mother: Myrna C. Bandol Occupation: Sewer

Educational Background

Grade School: Francisco Homes Elementary School

Year Graduated: 1997 - 2003

High School: San Jose del Monte High School

Year Graduated: 2003 - 2007

College: Bulacan State University – Sarmiento Campus

Year Graduated: 2008 - 2012

Seminars Attended

• Ethical Responsibility on Social Networks September 9, 2011

• Getting Our Acts Together to Create An Effective Organization March 27, 2009
• Self-Packaging and Professionalism February 21, 2009
• Enriching the Minds of the New Business Generation: October 11, 2008
Learning the Essentials of Management Functions
in a Business Organization

79
 CURRICULUM VITAE

Name: Rillen C. Bardillon

Age: 22

Address: 174 1st Avenue San Sebastian St. Fatima III, City of San Jose del Monte Bulacan

Date of Birth: July 31, 1989

Place of Birth: Manila Memorial Hospital

Civil Status: Single

Citizenship: Filipino

Religion: Roman Catholic

Contact #:

Email Address:

Father: Ricardo G. Bardillon Occupation: Driver

Mother: Elena C. Bardillon Occupation:

Educational Background

Grade School: Bagong Buhay E Elementary School

Year Graduated: 1996-2002

High School: Sapang Palay National High School

Year Graduated: 2002-2006

College: Bulacan State University – Sarmiento Campus

Year Graduated: 2008 - 2012

Seminars Attended

• Ethical Responsibility on Social Networks September 9, 2011

• Getting Our Acts Together to Create An Effective Organization March 27, 2009
• Self-Packaging and Professionalism February 21, 2009
• Enriching the Minds of the New Business Generation: October 11, 2008
Learning the Essentials of Management Functions
in a Business Organization

80
 CURRICULUM VITAE

Name: Mark Brian Umali

Age: 20

Address: Blk 6 Lot 87 San Rafael 1 City of San Jose del Monte

Date of Birth: May 07, 1991

Place of Birth: Calauag, Quezon

Civil Status: Single

Citizenship: Filipino

Religion: Roman Catholic

Contact #:

Email Address: [email protected]

Father: Renoel A. Umali Occupation:

Mother: Ester E. Umali Occupation: Teacher

Educational Background

Grade School: San Rafael BBH Elementary School

Year Graduated: 1997-2003

High School: Sapang Palay National High School

Year Graduated: 2003-2007

College: Bulacan State University – Sarmiento Campus

Year Graduated: 2008 - 2012

Seminars Attended

• Ethical Responsibility on Social Networks September 9, 2011

• Getting Our Acts Together to Create An Effective Organization March 27, 2009
• Self-Packaging and Professionalism February 21, 2009
• Enriching the Minds of the New Business Generation: October 11, 2008
Learning the Essentials of Management Functions
in a Business Organization

81
 CURRICULUM VITAE

Name: Robelle F. Ampuan

Age: 19

Address: Blk 1 Lot 20 Section 8 Phase 1 Muzon, Pabahay 2000, City of San Jose del Monte Bulacan

Date of Birth: May 03, 1992

Place of Birth: Angeles, Pampangga

Civil Status: Single

Citizenship: Filipno

Religion: Roman Catholic

Contact #:

Email Address: [email protected]

Father: Romeo Ampuan Occupation: Security Guard

Mother: Brilla Ampuan Occupation:

Educational Background

Grade School: Bagong Silang Elementary School

Year Graduated: 1998-2004

High School: San Jose High School

Year Graduated: 2004-2008

College: Bulacan State University – Sarmiento Campus

Year Graduated: 2008 - 2012

Seminars Attended

• Ethical Responsibility on Social Networks September 9, 2011

• Getting Our Acts Together to Create An Effective Organization March 27, 2009
• Self-Packaging and Professionalism February 21, 2009
• Enriching the Minds of the New Business Generation: October 11, 2008
Learning the Essentials of Management Functions
in a Business Organization

82