Literature on microfinance and women’s empowerment

A comprehensive review of literature is essential for any good research endeavour as it provides background information to aid researcher in designing and analysing research work. Since the early 1980s, a large number of studies have examined the various dimensions of microfinance programmes and women empowerment. The majority of the past studies focus on microfinance empowerment that observes the financial sustainability approach, which defines and measures empowerment mainly in economic terms. There is an assumption that women who borrow successfully increase their income. The approach is problematic since it only addresses the economic component of employment, and does not emphasize on the multidimensionality of the construct. Additionally, Mayoux 2008 cautions that the underlying assumption on the financial sustainability approach is that females get control over salaries and can make decisions concerning their resources.

Some studies carried on beyond financial conceptualizations scope have provided contradicting results. The studies have shown that microfinance are essential to women and there exists a positive correlation between empowerment and participants. As well, the studies have shown that there is a negative effect of micro financing on women as illustrated by Piza and Candida 1990. Results from some studies showing evidence of empowerment potential have shown that women participants have experienced enhanced power of bargaining in their household and community, increased decision-making in their families (Wooten, 2003). Increased confidence and the ability to influence community-based politics have also been realized.

Enhanced confidence and other empowerment aspects are connected to the design and implementation of microfinance program more than to raise income levels. For instance, women in Hunt and Kasynathan‟s study highly recognized the skills and training they obtained from the program as compared to their ability to contribute financially to the families. The structure of the programs inspires women to participate in the community development and local politics. Additionally, the lending group modem mostly results to the formation of women’s social network in the communities they belong.

On the contrary to the former discussed findings, studies that have shown a negative correlation between microfinance and women empowerment show increased burden for women participants and domestic violence. According to Wichterich (2000), Borrowing money from MFI needs commitment to attend regular meetings as well as taking part in training programs offered by MFI. The added commitment on bowing money form MFI has shown an increased exhaustion and health problems (Wooten, 2003) for participants, and at times is considered adding more burden to the women and family as a whole both financially and time. However, since the women were satisfied with the outcome, they never considered the process burdensome.

The literature review highlights that changes in salary levels, and structure and microfinance implementation programs have effects on women empowerment. In line with this, research investigating connection between microfinance participants (women majorly) and empowerment should spread beyond the commercial sustainability model to discover various empowerment dimensions. According to Rahman 1997, A thin empowerment scope can lead to misleading conclusions and therefore the importance of incorporating various aspects of empowerment in research. This study conceives empowerment as a multilevel construct and also explores how women microfinance participants perceive and experience empowerment.

Bibliography

Wichterich C. (2000), The globalized woman: reports from a future of inequality.

Australia, Spinifex Press.

Wooten S. (2003), Women, Men, and Market-Gardens: Gender Relations and Income

Generation in Rural Mali in Human Organisation-Society for Applied Anthropology;

(Summer 2003) Vol. 62, No. 2. pp. 166-177.

Piza L., and Candida M. 1990. Gender Considerations in Economic Enterprises.

Oxford: Oxfam.

Rahman, R.I., 1997 “Poverty, Profitability of Microenterprise and the Role of NGO Credit,” in Wood and Sharif (eds.), 1997, pp.271-287.