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Joint Liability Lending, Entrepreneurial Development, and Poverty Reduction
Abstract
The purpose of this chapter is to examine the effect of joint liability lending on micro businesses in Madina municipality. Joint liability lending has become a popular and fashionable word in financial and development circles. It is a cross sectional survey study and used both primary and secondary data on joint liability lending. The study reveals that joint liability lending improves entrepreneurships and reduces poverty. There exist a significant relationship between joint liability lending and a high repayment rate. The implications are that individual within the group are encouraged to continue saving and microfinance institutions should continue investing in educating and training clients to improve upon their micro businesses.
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