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Impact of microfinance on women’s economic empowerment

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  • Belay Mengstie

    (Woldia University)

Abstract

Women’s economic empowerment a strategy aimed at enabling women in decision-making, increment in income and asset ownership. The main aim of the study is to examine the impact of microfinance on women’s economic empowerment. Data were derived from a questionnaire of a sample of 346 women clients of microfinance. Multiple regression and paired sampled t-test data analysis techniques were used in the study. Multiple linear regression result revealed that age, marital status, education level, credit amount, and number of training have significant effect on women’s economic empowerment. However, previous business experience did not have significant impact on women’s economic empowerment. Paired sampled t-test result revealed that there is significant mean difference before and after microfinance service in terms of income, asset, and saving. Microfinance has significant positive effect on women’s economic empowerment by improving women’s independent income, increasing asset possession levels, and improved monthly saving amount. Moreover, the study proved that microfinance has a positive impact on women’s entrepreneurship development and business exposure.

Suggested Citation

  • Belay Mengstie, 2022. "Impact of microfinance on women’s economic empowerment," Journal of Innovation and Entrepreneurship, Springer, vol. 11(1), pages 1-12, December.
    • Handle: RePEc:spr:joiaen:v:11:y:2022:i:1:d:10.1186_s13731-022-00250-3
    DOI: 10.1186/s13731-022-00250-3
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    References listed on IDEAS

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    1. Esther Duflo, 2012. "Women Empowerment and Economic Development," Journal of Economic Literature, American Economic Association, vol. 50(4), pages 1051-1079, December.
    2. Beshir Shaku Beriso, 2021. "Determinants of economic achievement for women entrepreneurs in Ethiopia," Journal of Innovation and Entrepreneurship, Springer, vol. 10(1), pages 1-14, December.
    3. Hayelom Abrha Meressa, 2020. "Growth of micro and small scale enterprises and its driving factors: empirical evidence from entrepreneurs in emerging region of Ethiopia," Journal of Innovation and Entrepreneurship, Springer, vol. 9(1), pages 1-22, December.
    4. Endalew Terefe Alene, 2020. "Determinants that influence the performance of women entrepreneurs in micro and small enterprises in Ethiopia," Journal of Innovation and Entrepreneurship, Springer, vol. 9(1), pages 1-20, December.
    5. Kamel Bel Hadj Miled & Moheddine Younsi & Monia Landolsi, 2022. "Does microfinance program innovation reduce income inequality? Cross-country and panel data analysis," Journal of Innovation and Entrepreneurship, Springer, vol. 11(1), pages 1-15, December.
    6. Mohammad Mafizur Rahman & Rasheda Khanam & Son Nghiem, 2017. "The effects of microfinance on women’s empowerment: new evidence from Bangladesh," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 44(12), pages 1745-1757, December.
    7. Solomon Bizuayehu Wassie & Hitoshi Kusakari & Masahiro Sumimoto, 2019. "Performance of Microfinance Institutions in Ethiopia: Integrating Financial and Social Metrics," Social Sciences, MDPI, vol. 8(4), pages 1-13, April.
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