Impacts of Microfinance Activities on Social Capital Development Regarding the Relationships between Members of Village Savings and Loans Associations

Abstract

The study indicated impact of microfinance activities with Village Savings and Loans Associations (VSLAs) to community’s social capital development. Based on the responds of 356 members have been participating in the VSLAs (questionnaire and in-depth interviews), there has been a progression in social capital regarding members’ relationships proving the changes in members and their social relationship as well as the trust among them after joining the VSLAs. One of the unique and significant findings was the different ways and levels of trust among the members. The important of this finding is it emphasized how the social impact can effectively benefit the subjects of social welfare policies. The study also proposed solutions to promote the activities of VSLAs and develop social toward sustainable community development