Impact of microfinance for amplified women's enterpreneurship and social empowerment

Abstract

Empowering women is one of the key challenges for developing nations. Although they represent a large portion of the population, women often have limited influence in social, political, and economic decisions. Microfinance plays a crucial role in enhancing women’s decision-making by involving them in income-generating activities. It serves as a powerful instrument for uplifting the poor, particularly women, with its primary aim being their empowerment. Factors such as employment, income, savings, property ownership, education, and the ability to make choices regarding household expenses, children’s education, agriculture, and savings all reflect the level of women’s empowerment.

This study primarily relied on a self-designed questionnaire distributed to women in the Kathmandu District. The collected data was analyzed using statistical tools such as regression analysis, correlation analysis, mean, and standard deviation. A descriptive research method was employed to gather participants’ perspectives and assess their behavior. The study explored household well-being, as well as women’s economic, social, and political empowerment, and their decision-making abilities after participating in microfinance programs. Findings indicate that all examined variables have a positive impact. Moreover, the study revealed that women engaged with microfinance institutions experience greater access, control, and overall well-being. Efforts to eradicate illiteracy, encourage participation in financial and household decisions, and the role of microfinance institutions have collectively enhanced women’s self-confidence.