Education and Micro-Finance for the Enhancement of Knowledge and Skills of the Micro-Finance Clients

This study comes at a time; microfinance industry is experiencing changes which have led to a shift from financial services to nonfinancial services. The study was conducted in MiSykat- a community empowerment wing of Daarut Tauhiid in Bandung city. The study aimed to examine the education and microfinance activities in the enhancement of entrepreneurship knowledge and business skills of the poor clients. The interview and literature study strategies were applied to collect the data. Data analysis resulted into several major themes which include: holistic problem-solving skills for the poor, self-sustaining business skills, religious value education for poverty alleviation, education with credit for a productive economy, community credit knowledge etc. The research concludes that: empowerment can be achieved with clear objectives, education with microfinance stimulates the different skills of the poor, sustainability of a programme depends on people participation and education with credit is the most currently promoted approach for poverty alleviation and life improvement of the poor people. The limitation of the study is that, it is not representative of the whole microfinance sector since only one case was involved in the study.