The Role of Micro-credit System for Empowering Poor Women

Abstract

Participation of women in productive activities is crucial for enhancing the economic status of the family and for the overall empowerment of women. This study investigates how micro-credit programs affect women’s empowerment from the credit beneficiaries’ perspectives. Also, the study highlights the role of poor women in changing their life style by running small-micro business activities through the loans granted to them by a non-profit organization under the Micro-credit Program.

The study adopted a qualitative approach. The main findings of this study revealed that participation of women in micro-credit program helps in promoting women’s empowerment, in particular the economic and socio-cultural dimensions of empowerment. The targeted women became economically empowered by (1) having their own income, (2) contributing to household purchases and (3) financing the education of their children; however, they did not manage to make savings to promote their micro-small operations. The findings also indicated that micro-credit equipped women with greater social networks, freedom of mobility and facilitated bargaining power vise-a-vis their husbands.

The findings have implications for policies and interventions in enhancing new innovative approaches for micro-business programs.

Key Words:Micro-credit system; Women economic empowerment; Community poverty.