Impact of microcredit on women empowerment in gauriganj rural municipality, Jhapa

Abstract

Women in Nepal, particularly from marginalized communities, face significant challenges in achieving economic empowerment. This study aims to evaluate the impact of microfinance programs on the economic and social empowerment of Rajbanshi women in Gauriganj Rural Municipality. The data, collected from 120 women respondents, were analyzed using the Difference-in-Differences (DID) model and processed with Microsoft Excel. Descriptive, statistical, and analytical tools, along with diagrammatic and graphical representations, were utilized to present the findings clearly. The study found that access to microfinance significantly increased household earnings and savings, with a notable rise in women's autonomy, mobility, and decision-making abilities. Women in the treatment group experienced higher income growth compared to the control group, with a Difference-in-Differences (DID) indicating substantial economic benefits. Savings also increased significantly, enhancing financial stability and investment capacity. Additionally, there was an improvement in the quality of household consumption and access to education and healthcare. Policy implications suggest the need for targeted interventions to enhance women's access to microfinance and address sociocultural

barriers. Strengthening microfinance programs, coupled with educational and skill development initiatives, can further empower women economically and socially. These findings suggest that microfinance can be a valuable tool for empowering women in developing countries, potentially leading to improved social well-being, improved quality of household consumptions. This study underscores the critical role of microfinance in promoting women's empowerment and provides a basis for policymakers to design effective strategies for inclusive development. This result is also consistent with the findings of other developing countries.