The Impact of Micro Financing on Women: A Brief Review of the Literature

Abstract

Purpose: To assess how women entrepreneurs have been impacted by microfinance.
 Methodology: Brief review of the literature.
 Findings: Microfinance has been one of the development tools used to empower disadvantaged women entrepreneurs. The microfinance sector is increasingly being seen to be lucrative and the recent profit focus by new players in this sector and the effects of the COVID 19 pandemic are likely to reduce the social performance gains. 
 Unique contribution to theory, practice and policy: There is theory that access to microfinance by women leads to women empowerment, improved livelihoods and decision making. The literature review supports the theory but also highlights that microfinance on its own cannot succeed without addressing other socio economic challenges such as gender violence. Future studies needs to take an in-depth view of the socio economic challenges and how they can be mitigated once women are empowered.

Giving and Receiving: Faith and the Sustainability of Institutions Providing Microfinance Services for Development

“…Microfinance has a long history and is said to have originated in Europe with the 'Raiffeisenbanks' (cooperative lending banks) in Germany which were early examples of credit unions established in the 19th century, along with the revolving loan funds in Ireland following the devastating famines in the 16th and 17th century [9,10]. The use of microfinance as a tool to help address poverty in the developing world has a more recent history dating back to the early 1900s [11].…”

“…Thirdly, women are generally much more careful about managing their debts than men. In addition, the emphasis on female members by the Grameen Bank is perhaps a reflection of a much wider issue regarding the lack of access women in the developing world typically have to finance from formal sources such as commercial banks [10]. Globally, it has been estimated for the period 2016 to 2019 that while 46% of men reported having access to formal financial services, the corresponding figure for women was only 37% [44].…”

To Analyze the Effect of Microfinance Institutions on Women Empowerment, in Wolaita Zone, Southern Ethiopia

“…The family's nutritional status has also improved, which has contributed to economic empowerment. Women who receive microcredit are better able to influence their children's wellbeing in terms of emotional health and nutrition, as well as the education of their children (Odoyo, 2022).…”