THE IMPACT OF MICROFINANCE ON POVERTY REDUCTION THROUGH WOMEN’S EMPOWERMENT

Abstract

This study examines how Microfinance Institutions (MFIs) and micro-credit (MC) facilities has put a positive impact on poverty reduction by empowering the women of the society. Women’s Empowerment has become a central issue for the development of the country. Microfinance (MF) has hence taken an initiative and played a very important role by providing MC and improving the financial condition of these women. In this study, the survey method of data collection has been adapted and we have considered 336 respondents of SHGs out of 400 questionnaires yielding a response rate of about 84% from the people residing in rural areas of the Alipurduar district of West Bengal. After the collection of the data, a reliability test (Cronbach Alpha) has been done followed by correlation (Pearson) and multiple Regression analyses which were used to test the hypothesis. It was observed that the three variable that was taken into consideration (i.e., socioeconomic status, women’s position in the family/society, and financial benefit from SHGs) have a significant positive impact on women’s empowerment through MF. The findings in the study bring up certain valuable contributions to the MFIs for better designing of the policies and strengthening and encouraging their future work to empower women and reduce the level of poverty. If the women are encouraged to join the SHG and MFIs provide financial benefits to them, the objective of equal participation may be achieved.