THE ROLE OF MICROFINANCE IN EMPOWERING FEMALE ENTREPRENEURS

Abstract

Microfinance has emerged as a transformative tool in empowering female entrepreneurs, especially in developing economies where women often face structural and societal barriers to financial inclusion. By providing access to small loans, savings, insurance, and financial training, microfinance institutions have played a pivotal role in fostering women’s entrepreneurial activities. These services not only enable women to establish and expand small businesses but also enhance their economic independence and decision-making capabilities within households and communities. Furthermore, microfinance has demonstrated positive ripple effects, contributing to poverty alleviation, improved education, and healthcare access for beneficiaries and their families. Despite its benefits, challenges such as high-interest rates, repayment pressures, and lack of adequate support services persist. This paper delves into the multifaceted impact of microfinance on female entrepreneurship, emphasizing the empowerment dynamics it facilitates and addressing the barriers that limit its full potential. The findings underscore the need for innovative policies and holistic support systems to amplify the role of microfinance in driving sustainable development and gender equality.