Microfinance loans, entrepreneurship and household\u27s socioeconomic status improvement: The case of Pasay City, Philippines for the years 2005 and 2011 using logistic regression based on community-based monitoring system (CBMS) data

This study is about how microfinance loans affect the improvement of all the households in Pasay City. The researchers focused on the loans that were invested in business by households residing in Pasay from 2005 to 2011. Logistics regression was used to know if certain demographics such as age, gender, income, etc. of the the head of households would affect the likehood of borrowing loans. Household development index was also used to measure if households in Pasay improved and this index was based from the Millennium Development Goals of the United Nations. Households were measured by the improvement in their sanitary facilities, electricity connections, water sources, and house construction materials. The researchers found out that borrowers and non-borrowers had little to no improvements on electricity connection and water sources, while borrowers are worse-off in terms of house construction materials compared to non-borrowers. Households who borrowed funds are only better-off in terms of their sanitary facilities. These results are contrary to researchers\u27 expectations and possible causes are interest rates burden and business failures. Because of these findings, seminars and assistance to borrowers are recommended to have a higher chance of success