Predictors of Development of Microfinance Beneficiaries in the Rural Villages of Northeastern Mindanao, Philippines

The study determined the predictors of development of microfinance beneficiaries of City Social Welfare and Development Office in Butuan City, Philippines. The predictors were grouped according to the adequacy and effectiveness of the microfinance program components. Results show that on the adequacy of the program components as the predictor of development, the multiple correlation of .7148 suggests a moderate, direct and significant relationship between the triple combinations of capability building, micro-lending and savings mobilization to development of beneficiaries. This implies that no single variable can adequately explain its effect to another variable, it is always a combination. Meanwhile, on the effectiveness of the program components as the predictor, the regression coefficient of .6779 reveals that there is a moderate, direct and significant relationship between information, education and communication (IEC) and development of beneficiaries. As such, it is hereby recommended that implementing agency should focus more on capability building, micro-lending and savings mobilization and information, education and communication. Social funds for the development of these predictors are clearly a complement to, not to substitute for, effective sectorial policies, nor should they try to fulfill all the investment financing needs of all poor communities. Social funds must work in tandem with local government funds, NGOs, communities and other development agents to leverage and out investments that serve the broader national objectives of poverty alleviation.