The Impact of Microfinance on Women's Empowerment in Rural Pakistan: A Comprehensive Study on Financial Independence, Decision-Making Power, and Socioeconomic Development
DOI:
https://doi.org/10.65761/jssp.2024.v1.i1.4Keywords:
Microfinance, Women’s Empowerment, Financial Independence, Decision-Making, Socioeconomic Development, Rural Pakistan, Gender Equality, Poverty ReductionAbstract
Background: This research attempts to investigate the effect of microfinance on women’s empowerment in rural Pakistan especially in terms of financial independence, increasing the power in making decision and accelerating socio-economic development.
Objective: Microfinance programs work to offer financial resources and training for women facing difficulties gaining financial resources and services in rural areas, where there is very limited access to credit and financial services.
Methods: Research shows that microfinance contributes to the financial independence of women because it allows them to participate in income generating activities and hence improve their economic status.
Results: Specifically, women's newfound financial independence is germane to their participation in household decision making and hence more involvement in financial and social matters. Furthermore, we document that women participating in microfinance programs experience gains in their living standards along a variety of dimensions (e.g., improved access to education, healthcare and nutrition).
Conclusion: These findings indicate that microfinance not only provides an individual empowerment for the women by making them strong to bring a revolutionary change in the family and society, but also helps to develop the community by widening the roles of women. Nonetheless, these are challenged by patriarchal norms and limited market access which prevent microfinance from completely reaching its potential. Women in rural Pakistan need targeted policy interventions and comprehensive support systems.
References
1. Khursheed, A. (2022). Exploring the role of microfinance in women’s empowerment and entrepreneurial development: A qualitative study. Future Business Journal, 8(1), 57.
2. Farooq, S. H., Din, A. U., Soomro, I. A., & Riviezzo, A. (2024). Unveiling the path to sustainable poverty alleviation in Pakistan: Investigating the role of microfinance interventions in empowering women entrepreneurs. Scandinavian Journal of Management, 40(2), 101331.
3. Ogbari, M. E., Folorunso, F., Simon-Ilogho, B., Adebayo, O., Olanrewaju, K., Efegbudu, J., & Omoregbe, M. (2024). Social empowerment and its effect on poverty alleviation for sustainable development among women entrepreneurs in the Nigerian agricultural sector. Sustainability, 16(6), 2225.
4. Wen, J., & Wu, Y. (2023). Community empowerment in poverty-alleviation social work. In Research on Community-Centered Poverty-Alleviation Social Work (pp. 129–160). Singapore: Springer Nature Singapore.
5. Ali, A. (2022). Fragile states, decentralisation and the nature of barriers to citizen participation in local government: A view from Pakistan. SN Social Sciences, 2(2), 11.
6. Sarikhani, Y., Najibi, S. M., & Razavi, Z. (2024). Key barriers to the provision and utilization of maternal health services in low-and lower-middle-income countries: A scoping review. BMC Women’s Health, 24(1), 325.
7. Chavula, M. P., Zulu, J. M., & Hurtig, A. K. (2022). Factors influencing the integration of comprehensive sexuality education into educational systems in low-and middle-income countries: A systematic review. Reproductive Health, 19(1), 196.
8. Leder, S. (2022). Beyond the ‘feminization of agriculture’: Rural out-migration, shifting gender relations and emerging spaces in natural resource management. Journal of Rural Studies, 91, 157–169.
9. Rahman, M. M., Huq, H., & Hossen, M. A. (2023). Patriarchal challenges for women empowerment in neoliberal agricultural development: A study in Northwestern Bangladesh. Social Sciences, 12(9), 482.
10. Kochar, A., Nagabhushana, C., Sarkar, R., Shah, R., & Singh, G. (2022). Financial access and women's role in household decisions: Empirical evidence from India's National Rural Livelihoods Project. Journal of Development Economics, 155, 102821.
11. Govil, D., Sahoo, H., Chowdhury, B., & James, K. S. (2024). A qualitative perspective of working women care providers and care receivers on eldercare: A study from India. BMC Geriatrics, 24(1), 345.
12. Arjyal, A., Parajuli, A., Kharel, C., Del Barrio, M. O., & Baral, S. C. (2023). Understanding gender and its intersection with social stratifiers on prevention and care seeking behavior of lymphatic filariasis in Nepal. Infectious Diseases of Poverty, 12(1), 77.
13. Alemu, A., Woltamo, T., & Abuto, A. (2022). Determinants of women participation in income-generating activities: Evidence from Ethiopia. Journal of Innovation and Entrepreneurship, 11(1), 66.
14. Shohel, T. A., Niner, S., & Gunawardana, S. J. (2023). ‘Even though I get a loan, my husband controls it’: Rhetoric versus reality of empowering Bangladeshi women through microfinance programs. The European Journal of Development Research, 35(4), 794–819.
15. Dushkova, D., & Ivlieva, O. (2024). Empowering communities to act for a change: A review of the community empowerment programs towards sustainability and resilience. Sustainability, 16(19), 8700.
16. Coy, D., Malekpour, S., & Saeri, A. K. (2022). From little things, big things grow: Facilitating community empowerment in the energy transformation. Energy Research & Social Science, 84, 102353.
17. Mengstie, B. (2022). Impact of microfinance on women’s economic empowerment. Journal of Innovation and Entrepreneurship, 11(1), 55.
18. Zulfiqar, G. M. (2022). Inequality regimes, patriarchal connectivity, and the elusive right to own land for women in Pakistan. Journal of Business Ethics, 177(4), 799–811.
19. Pike, K., & English, B. (2022). And roses too: How “Better Work” facilitates gender empowerment in global supply chains. Gender, Work & Organization, 29(1), 188–204.
20. Kumar, P., Pillai, R., Kumar, N., & Tabash, M. I. (2023). The interplay of skills, digital financial literacy, capability, and autonomy in financial decision making and well-being. Borsa Istanbul Review, 23(1), 169–183.
21. Al Mamun, M. A., & Hoque, M. M. (2022). The impact of paid employment on women's empowerment: A case study of female garment workers in Bangladesh. World Development Sustainability, 1, 100026.
22. Nixon, R., Ma, Z., Zanotti, L., Khan, B., Birkenholtz, T., Lee, L., & Mian, I. (2022). Adaptation to social–ecological change in Northwestern Pakistan: Household strategies and decision-making processes. Environmental Management, 69(5), 887–905.
23. Pandhare, A., Bellampalli, P. N., & Yadava, N. (2024). Transforming rural women’s lives in India: The impact of microfinance and entrepreneurship on empowerment in Self-Help Groups. Journal of Innovation and Entrepreneurship, 13(1), 62.
24. Ali, T. S., Ali, S. S., Nadeem, S., Memon, Z.,
25. Soofi, S., Madhani, F., ... & Bhutta, Z. A. (2022). Perpetuation of gender discrimination in Pakistani society: Results from a scoping review and qualitative study conducted in three provinces of Pakistan. BMC Women’s Health, 22(1), 540.
26. Abebe, A., & Kegne, M. (2023). The role of microfinance institutions on women’s entrepreneurship development. Journal of Innovation and Entrepreneurship, 12(1), 17.
27. Wondimu, H., Terefe, D., & Melkamu, G. (2023). The role of microfinance service in the sustainable development goals of women's empowerment: A glimpse from Amhara Credit and Savings Institution.
Downloads
Published
Issue
Section
License
Copyright (c) 2024 Journal of Social Science Perspectives
This work is licensed under a Creative Commons Attribution 4.0 International License.
