Effect of Microfinance on Women Entrepreneurship: A Case Study of Siyari Rular Municipality

Abstract

This study surveys 110 women entrepreneurship of Siyari Rural Municipality to examine their position of business volume and turnover, saving and expenditure and ownership of assets after and before taken loan from microfinance. The assessment of the process was Purposive sampling technique, semi-structured questionnaire was developed to gather the information. Both parametric t-test and non-parametric McNemar test have been applied to test the significance of the study.

The findings suggested that most of the MFIs of Siyari Rural Municipality was found to provide only credit and saving facilities to women entrepreneurs and none of the institutions were found to provide training facility. The intervention of MFIs for women entrepreneurs had significant positive impact on business volume and turnover of women entrepreneurs improved, women started saving more and their expenditure pattern also improved after they took loan from microfinance. Though the overall dimensions of ownership of assets of women entrepreneurs has significant difference before and after taking loan from microfinance but in case of land, house and motorcycle there is no significant difference as the women can get only few amount of credit from MFIs which is not sufficient for adding any heavy assets .

The main problem that the women were struggling for is lack of capital and training from microfinance in order to run their business smoothly and they are taking loan in high interest rate. However, women entrepreneur are highly influenced by doing their business after taking loan from microfinance and they have able to keep positive impact towards their savings and expenditure, assets position and their living of standard.