Analyzing the Impacts of Creating Microfinance Funds on the Development of Sustainable Employment in Rural Areas (Case Study: Razan and Famnin cities)

The purpose of this research was to see the impact of creating microfinance funds in improving the employment in Razan and Famnin cities based on the participation of local people. Descriptive analytical method and questionnaire were used to collect the data of this applied research. The statistical population included 4609 households living in the villages of Rozen and Famnin cities. Using Cochran formula, 360 households were selected as participant of the sample selected by simple random sampling. To measure the validity of the research tool (questionnaire), experts’ opinions were used. Cronbach's alpha was used to measure reliability, which was at a very appropriate level (0.87). Descriptive statistics (mean, standard deviation) and inferential statistics (one-sample t-statistics, Pearson correlation and multivariate regression, Kolmogorov-Smirnov test, one-way variance and Tukey test) were used for data analysis. The results showed that the highest correlation belongs to the indicators “business development in the village” and “the ability to create work and self-employment for the villagers”, respectively, with a beta of 0.300. 0.264, 0.237. Therefore, the establishment of a microfinance fund will help better employment and sustainability of households in the village. Moreover, their participation in economic activities will increase, and the result will be the progress in the production and employment compatible with the environment, which is in line with the resistance and social economy.