Exploring the role of microfinance in women’s empowerment and entrepreneurial development: a qualitative study

Abstract

In developing countries, women’s empowerment is a major concern. Several efforts were made to tackle this issue as the aims of poverty reduction and development cannot be achieved without giving attention to women’s empowerment. Over the past decades, microfinance institutions (MFIs) have appeared as crucial tools not only to address the issue of poverty but also particularly to empower women. Resultantly, a huge number of studies focus on the relationships between MFI and women empowerment. However, in the context of rural areas of Pakistan, the research is limited. Therefore, the objective of this study is to investigate the role of MFI in women’s empowerment in Pakistan so that the research will facilitate MFIs and policymakers in strengthening the link between MFIs and women entrepreneurship. We have used a qualitative methodology, using primary data collected through in-depth interviews and a focus group discussion with six female borrowers of Rural Community Development Programs (RCDP). The empirical results provide valuable insights into the efforts made by RCDP to empower women and combat poverty by encouraging women’s entrepreneurship. Hence, this paper not only examines empowerment, which women are attaining from microfinance but also assists MFIs to know about their significance in developing the economy. The paper is significant for MFI practitioners to develop policies for boosting women’s entrepreneurship and to help their existing women clients with efficient training and supervision.

Empowering Women through IT: The Role of the IT Sector in Bangladesh

“…However, efforts have been made to empower women through various initiatives, including education programs, legal reforms, and economic opportunities. For instance, microfinance programs have been implemented to empower women, although these programs have shown mixed results, sometimes even increasing exposure to intimate partner violence among educated and empowered women [17,18]. The readymade garments (RMG) sector has been a significant change agent, employing a large number of women and contributing to their economic empowerment [19].…”

“…On the positive side, there has been an improvement in educational attainment and employment status. Women have increasingly been involved in income-generating activities, and micro-financing has played a role in uplifting the socio-economic empowerment of women [17][18][19][20]. However, challenges remain, particularly in participation in decision-making and household positions.…”

Financial Literacy Variables in Microfinance Institutions studies: A Systematic Literature Review

“…Money and mobile money transactions Morawczynski and Pickens, 2009;Reeves and Sabharwal, 2013;Munyegera and Matsumoto, 2018;Chiwaula et al, 2020;Kamdjoug et al, 2020;Chidambaranathan and Guha, 2020;Hasan and Hoque, 2021;Banciu et al, 2022;Illangakoon et al, 2022) 10 14 Loan repayment (De Mel et al, 2008;Wanjiku and Muturi, 2015;Munyua, 2016;Gaudence et al, 2018;Smits and Günther, 2018;Ghosh and Guha, 2019;Baidoo et al, 2020;Redson and Magali, 2022;Sayankar and Mali, 2022). 10 14 Investment (Morawczynski and Pickens, 2009;Das and Dutta, 2014;Rahman et al, 2015;Robert et al, 2018;Ajibola et al, 2020;Khuc et al, 2022;Banciu et al, 2022;Khursheed, 2022;Bellazzecca and Biosca, 2022). 9 12 Financial attitude (Das and Dutta, 2014;Froelich et al 2015;Razak et al, 2020;Chidambaranathan and Guha, 2020;Moko et al, 2022;Khursheed, 2022;Illangakoon et al, 2022).…”

“…10 14 Investment (Morawczynski and Pickens, 2009;Das and Dutta, 2014;Rahman et al, 2015;Robert et al, 2018;Ajibola et al, 2020;Khuc et al, 2022;Banciu et al, 2022;Khursheed, 2022;Bellazzecca and Biosca, 2022). 9 12 Financial attitude (Das and Dutta, 2014;Froelich et al 2015;Razak et al, 2020;Chidambaranathan and Guha, 2020;Moko et al, 2022;Khursheed, 2022;Illangakoon et al, 2022). 8…”

“…5 7 Financial knowledge (Hudon, 2008;Reeves and Sabharwal, 2013;Ghosh and Guha, 2019;Xiong and You, 2019;Hasan and Hoque, 2021). 5 7 Women empowerment (Bijli, 2012;Sangwan and Nayak, 2020;Lee and Huruta, 2022;Khursheed, 2022) 4 6 Budgeting (Cole et al, 2014;Wanjiku and Muturi, 2015;Gaudence et al, 2018;Banciu et al, 2022). 4 6 Interest rate (Cole et al, 2014;Razak et al, 2020;Lamichhane, 2021;Hasan and Hoque, 2021) 4 6 Mediation role between financial literacy and other (Bongomin et al 2020;Moko et al, 2022;Lee and Huruta, 2022) variables 13…”