ROLE OF MICROFINANCE INSTITUTIONS ON WOMEN ENTREPRENEURSHIP

Abstract

This research explored the role of microfinance institutions (MFIs) in promoting women entrepreneurship development in Nepal, focusing on factors such as access to finance, skill development, business support, and saving services. The study employed a quantitative approach with a sample of 404 women entrepreneurs from Kathmandu, Lalitpur, and Bhaktapur districts. Data analysis included descriptive statistics, correlation analysis, and multiple regression to explore relationships and predictors of women entrepreneurship development. The findings reveal that variables such as access to finance, skill development, business support, and saving services exhibit significant internal consistency (Cronbach Alpha ranging from 0.652 to 0.764), indicating reliable measurement constructs. Descriptive statistics highlight moderate to high mean perceptions across these variables, suggesting consistent views among respondents regarding their importance in entrepreneurial success. Correlation analysis demonstrates strong positive relationships (p < 0.01) among access to finance, skill development, business support, saving services, and women entrepreneurship development. Regression analysis further reveals that the combined predictors explain 54.3% of the variance in women entrepreneurship development, with saving services and business support emerging as significant predictors. The study shows the important role of microfinance interventions, particularly in enhancing business advisory services and facilitating effective saving mechanisms, in empowering women entrepreneurs. These findings offer valuable understandings for policymakers and practitioners aiming to design targeted strategies to foster gender-inclusive economic growth and entrepreneurship empowerment in Nepal and similar contexts.