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The Effectiveness of Microfinance Program on Women’s Empowerment: Location as Moderator

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  • Maryam Jameelah Hashim
  • Mohammad Izzat Naqib Yusof
  • Nur Dina Athia Ramley

Abstract

Women are an engine for economic growth and a value creator for businesses. Though women contribute roughly 40-50% of all small business related in developing countries, they represent fewer than 20% of the world’s landholders, and often their access and control of resources, particularly income, is comparatively lower than that of men. This prevents them from actively driving economic growth and productivity in the business chain. With the help of Amanah Ikhtiar Malaysia (AIM), this study will reach out to the participant of AIM to understand the issue of women’s empowerment. This research focuses on 3 main components: the involvement of microfinance programs, social capital, and training. A survey designed for the participants of AIM was used to gather data from over 375 participants to study the effectiveness of Islamic microfinance in improving women’s empowerment in business. A partial least square-structural equation (PLS-SEM) was used to analyze the research model. Subsequently, the research model was validated using Smart PLS 4 and proposed the study hypothesis. The findings confirmed that involvement in microfinance programs, and social capital, except training, positively influenced women’s empowerment in business. Geographical location as moderator was also found to be non-significant towards women’s empowerment.

Suggested Citation

  • Maryam Jameelah Hashim & Mohammad Izzat Naqib Yusof & Nur Dina Athia Ramley, 2023. "The Effectiveness of Microfinance Program on Women’s Empowerment: Location as Moderator," Information Management and Business Review, AMH International, vol. 15(2), pages 1-13.
    • Handle: RePEc:rnd:arimbr:v:15:y:2023:i:2:p:1-13
    DOI: 10.22610/imbr.v15i2(I).3367
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    References listed on IDEAS

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    1. Luminita Postelnicu & Niels Hermes, 2018. "Microfinance Performance and Social Capital: A Cross-Country Analysis," Journal of Business Ethics, Springer, vol. 153(2), pages 427-445, December.
    2. Maren Duvendack & Philip Mader, 2020. "Impact Of Financial Inclusion In Low‐ And Middle‐Income Countries: A Systematic Review Of Reviews," Journal of Economic Surveys, Wiley Blackwell, vol. 34(3), pages 594-629, July.
    3. Jamal, M. Abdul & Raihana, Amatul Khadir Ayesha & Sultana, H. Yasmeen, 2016. "Empowerment of Muslim Women through Microfinance and Self Help Groups: A Case Study of Chennai City," Asian Business Review, Asian Business Consortium, vol. 6(2), pages 117-124.
    4. Syed Hussain Haider & Muzaffar Asad & Minaa Fatima & Rana Zain Ul Abidin, 2017. "Microfinance and Performance of Micro and Small Enterprises: Does Training have an Impact," Journal of Entrepreneurship and Business Innovation, Macrothink Institute, Journal of Entrepreneurship and Business Innovation, vol. 4(1), pages 113-113, December.
    5. Noor, Mohd & Mat, Siti & Hakim, Roslan, 2013. "Impak Kredit Mikro ke atas Ketaksamarataan Pendapatan di Kalangan Sahabat Amanah Ikhtiar," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 47(1), pages 75-86.
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    7. Zainudin Awang & Wan Mohamad Asyraf Wan Afthanorhan & M.A.M. Asri, 2015. "Parametric and Non Parametric Approach in Structural Equation Modeling (SEM): The Application of Bootstrapping," Modern Applied Science, Canadian Center of Science and Education, vol. 9(9), pages 1-58, September.
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