International Journal of Science and Business

Assessing the Relationship Between Social Financing and Community Development in Bangladesh

 Author (s)

Md. Sajadul Islam Sarker

Abstract

This study finds that socially oriented financial mechanisms improve socioeconomic well-being, empowerment, inclusion, and collective growth. Rural and impoverished communities in Bangladesh generally lack access to formal banking services, income-generating opportunities, and socioeconomic equality. By incorporating credit, savings, mutual support, social solidarity, women’s empowerment, collective involvement, and community engagement, social financing and microfinance have become key tools for financial inclusion and community development. Financial interventions promote development in financial and social ways. Microfinance and community-based financial initiatives in Bangladesh have improved financial decision-making, savings, income, and expenditure, and have empowered rural women. However, community-level consequences have received less attention. Therefore, the study examines whether social finance significantly affects community development. Quantitative Analysis used Pearson’s chi-square test and Cramér’s V to assess the strength of the association. The study yielded a Pearson chi-square value of 112.441 (p < 0.001) and a Cramér’s V of 0.612. The hypothesis is supported, demonstrating a robust correlation between social finance and community growth. Financing, social inclusion, collective involvement, women’s empowerment, savings, training, leadership, and community engagement appear to improve inclusive and sustainable development. Thus, politicians, microfinance institutions, NGOs, and development agencies should use socially oriented funding alternatives in addition to loans for community development.

Keywords: Social capital, Financial inclusion, Women empowerment, Community development and Microfinance.

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Title: Assessing the Relationship Between Social Financing and Community Development in Bangladesh
Author: Md. Sajadul Islam Sarker
Journal Name: International Journal of Science and Business
Website: ijsab.com
ISSN: ISSN 2520-4750 (Online), ISSN 2521-3040 (Print)
DOI: https://doi.org/10.58970/IJSB.2706
Media: Online
Volume: 53
Issue: 1
Issue publication (Year): 2026
Acceptance Date: 25/10/2026
Date of Publication: 28/10/2026
PDF URL: http://ijsab.com/wp-content/uploads/2706.pdf
Free download: Available
Page: 110-125
First Page: 110
Last Page: 125
Paper Type: Research Paper
Current Status: Published

 

Cite This Article:

Sarker, M. S. I. (2026). Assessing the Relationship Between Social Financing and Community Development in Bangladesh, International Journal of Science and Business, 53(1), 110-125. https://doi.org/10.58970/IJSB.2706

About Author (s)

Md. Sajadul Islam Sarker, Associate Professor, Department of Tourism and Hospitality Management, Leading University, Sylhet-3112, Bangladesh. ORCID: https://orcid.org/0000-0001-9862-9234

 

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DOI: https://doi.org/10.58970/IJSB.2706

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