Community Development Finance Institutions

Question: Discuss about the Community Development Finance Institutions. Answer: Introduction: The significance of development saw Australia develop several strategies and plans at millennium so as to develop their financial sector. Hence, the need for finance of projects has led about to the development of microfinance institutions in the country. Therefore, the microfinance concept has received massive attention since inception. This idea of microfinance has a great impact because they are pertained to elevate poverty as well as enhance economic development through provision of credit and savings services to those individuals with low incomes (Guardian, 2006). In general, we could pertain the idea of establishing microfinance institution is for the purpose of escalating proficiency in the Australian financial sector. Reason for choosing the topic The reason as to why I have chosen this topic is trying to emphasize on the need of microfinance as well as its impact in the financial sector. Therefore, the development of this paper will answer several questions such as; who largely benefit from microfinance services in Australia? What are the impact of MFIs institutions in Australia? What are the strategies put in place by MFIs to ensure that they attain their expected objectives? What sort of policy questions do these findings raise for MFIs and also the national government? Further explanation of why I have chosen this research is because of several reasons. First, this research may push the government to support and develop microfinance institutions. Secondly, MFIs management need to understand the perception of citizens on the impact of microfinance services (Burkett et al, 2009). Lastly, this research may act as a catalysts to other researchers to carry out more investigation in regards to significance and impact of MFIs. Literature Review Alam Majumdar (2011) perceives MFIs as financial development whose focus is on alleviation of poverty through provision of financial services to the poor in society. On the other hand, Gup (2005) perceives that a characteristics of microfinance include provision of access to financial and non-financial services to low income individuals. Nault (2008) research on MFIs has shown that since development of such institutions in Kenya. The country has experienced some form of development economically. Hence, this shows that MFIs have several advantages to the economy. Some business have thrived in Australia as a result of these institutions meaning that they have greatly flopped the economy (Parker, 2003). Methodology to be used In terms of the proposed methodology there are diverse methods that will be used in this research. Hence, for research design there will be use of cross-sectional descriptive design. The reason as to why this strategy is important is because data will only be collected once. Hence, descriptive form of research is important because of the information obtained on the current status of microfinance in Australia. There will also use of descriptive statistics because of the pertained group number represented during data collection. In addition, the use of primary and secondary sources of research will be used during the process of data collection. The idea behind primary data in this research is to get first-hand data in regards to MFIs in Australia. References Parker, K., Lyons, M., Australian Centre for Co-operative Research and Development. (2003).Community development finance institutions: Evidence from overseas and Australia. Sydney: University of Technology, Sydney - Australian Centre for Co-operative Research and Development. Nault, D. M. (2008).Development in Asia: Interdisciplinary, post-neoliberal, and transnational perspectives. Boca Raton: BrownWalker Press. Alam, Q., Majumdar, N. A. (2011).Cases in business and management. Prahran, Vic: Tilde University Press. Hoque, Z., Parker, L. D. (2014).Performance management in nonprofit organizations: Global perspectives. Burkett, I., Sheehan, G., Brotherhood of St. Laurence. (2009).From the margins to the mainstream: The challenges for microfinance in Australia. Fitzroy, Vic: Brotherhood of St Lawrence/Foresters Community Finance. Gup, B. E. (2005).Capital markets, globalization, and economic development. New York: Springer. Guardian, E. A., Philippines-Australia Technical Support for Agrarian Reform and Rural Development. (2006).Innovating strategies in rural development: Beyond the usual. Manila, Philippines: Philippines-Australia Technical Support for Agrarian Reform and Rural Development.