The mediating influence of motivation on microcredit training and capital creation

Prince, Sheikh Ashiqurrahman, Wahid, Ishraat Saira and Khan, Hafiz T.A. ORCID: (2021) The mediating influence of motivation on microcredit training and capital creation. Journal of Poverty. ISSN 1087-5549

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Since many lives and livelihoods have been devastated by Covid-19 in 2020, microcredit provides loans to the poor who do not qualify for traditional bank loans has become an important aid for poverty reduction. This study investigates how microcredit training creates capital for microcredit borrowers both directly and through motivation. Using Ability, motivation and opportunity (AMO) theory it also demonstrates how sociodemographic features impact their training, motivation, and capital creation. Using stratified random sampling, 364 pieces of data were gathered from a microcredit institute operating in the northern region of Bangladesh. A series of statistical analyses were used, such as Cronbach’s alpha, confirmatory factor analysis (CFA), and the structural equation model. The results show that microcredit training directly affects borrowers’ capital creation, while borrowers’ motivation mediates the relationship between microcredit training and their capital creation. In addition, training has a significant effect on borrowers’ motivation, and borrowers’ motivation has a direct effect on capital creation. Furthermore, a high standard of education was found to be a positive factor in influencing the training of borrowers, their motivation, and their capital creation. The findings will help the government, concerned organizations, and decision-makers to improve their policies and programs for alleviating poverty and generating rural employment in Bangladesh. This study makes a significant contribution to these aims by applying the effect of AMO theory in microcredit research that has previously been unexplored.

Item Type: Article
Identifier: 10.1080/10875549.2021.1890668
Additional Information: This is an Accepted Manuscript of an article published by Taylor & Francis in Journal of Poverty on 09/03/2021, available online:
Keywords: Microcredit training, borrowers’ motivation, borrowers’ demography, borrowers’ capital creation, ability-motivation-opportunity (AMO) theory, poverty reduction, Bangladesh
Subjects: Social sciences > Economics and economic history
Medicine and health
Business and finance
Social sciences
Related URLs:
Depositing User: Hafiz T.A. Khan
Date Deposited: 09 Mar 2021 16:20
Last Modified: 06 Feb 2024 16:05


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