Research Article | Open Access
Impacts of Microfinance Initiatives on Child labor: A Descriptive Study
G. Ravi Shankar and Dr. Jayanthi
Pages: 4906-4912
Abstract
Personal home hardship is a major motivator for children to labor in attempt to help their families survive. Because
of the significance of children's money contributions to the home, other forms of revenue must be provided
accessible in attempt to avoid child labour. Microfinance is seen as having the ability to alleviate these difficulties
by allowing people to store or loan funds to establish or develop businesses, therefore providing extra income as
well as reducing the monetary commitment of youngsters to a home. Even though one of the fundamental goals of
microfinance was to reduce hardship by providing loans for income generation, documentation of its influence on
income has indeed been inconsistent. Nevertheless, while microfinance is viewed as a resource for the poor, it had
already been demonstrated that it has difficulty accessing the weakest households, who are also the group greatest at
danger of needing to depend on child labour for survival. Moreover, due to the restricted loans accessible via
microfinance as well as a lack of specialised skills, companies are sometimes forced to participate in labor-intensive
businesses with marginal earnings. Because these are the disciplines in which youngsters are frequently observed
working.
Keywords
Microfinance, child labor, Micro credit, human capital, social status