Page: 01-11. Role of microfinance: a study on rural women’s access and acceleration in the family economy.

R. M. I. KHAN1*, M. A. MANNAN2 and S. ISLAM3

1=Rashal  Md.  Iqbal Khan,Program & Operations Division, Stromme Foundation (strommestiftelsen)-Bangladesh, Dhaka-1216, 2=Mohammad Abdul Mannan, Offsite Supervision & Project Coordination Section, Microcredit Regulatory Authority, Dhaka-1217 and 3=Safiul Islam, Department of Agribusiness & Marketing, Sher-e-Bangla Agricultural University, Dhaka-207, Bangladesh. *Correspondence e-mail: rashal63@yahoo.com.

 ABSTRACT

The study has systematically investigated the role of microfinance programs in determining what percentage of women in the society are establishing themselves as micro small and medium entrepreneurs by using their own micro-credit received from NGOs/MFIs as well as in determining how it is empowering them. The samples were collected form Barvoria and Digdair villages in Sonatala upazila under Bogra district of Bangladesh during 01 May 2010 to 10 August 2010. Women are the key inclusion in microfinance program. Therefore, their self-use of the microcredit taken, access to money market, participation in familial economy and decision-making process are addressed in this research. Incidentally in addition to the self-use of microcredit of women, who else are using their loan and what percentage of them, which has also been explored by this study. It critiques current concept of microfinance comparing to the conventional methods used for women’s social progresses through participation in socioeconomic, socio-cultural and sociopolitical interventions. It suggests that more comprehensive, transparent, ethical interpretations of microfinance really needed to initiate social changes, increases the livelihoods of poor women and reduces their vulnerabilities that the basic requirements of women empowerment and gender equality. The research outlines the reasons why female borrowers have failed to use microcredit its own-self and identify the nature and extent of factors that affecting the empowerment of poor women, their access to the money-market and independence decision-making. In addition to the big challenges, it has finally found a suitable way to overcome the challenges as well as established a broad framework for women’s emancipation following confronting the challenges of attaining freedom. Therefore, in order to make the research work more visible, study-context, evolution and consistency of microfinance, stratification of women, appropriate research methods, factors affecting challenges and way-forward are discussed critically. Sample survey method and descriptive-inferential statistical analysis has been followed the most common methodology of social research.

Keywords: Women Empowerment, Gender Equality, Dignity Establishment, Entrepreneurship, Poverty, Microfinance Service.