THE IMPACT OF MICRO FINANCE SERVICES ON WOMEN’S ECONOMIC EMPOWERMENT; EVIDENCE FROM KURUNEGALA DISTRICT IN SRI LANKA

 

DOI : 10.57075/jaf1112408

 

Women’s economic empowerment has become one of the most pressing concerns in the world as empowering women economically, can make a significant contribution to the expansion of the economy and their immediate families to maintain a sustainable way of life. The concept of microfinance has developed as a tool to obtain both financial and non-financial support for poor people’s self-empowerment. Women who come from low-income families are given the ability to make a valuable contribution to the economy through the use of microfinance. In the Sri Lankan context, female labor force participation is comparatively at a lower level, and thus more women are economically inactive. Therefore, microfinance services are vital to low-income women in both rural and urban areas. Due to the vitality of this aspect, this research aims to examine the impact of microcredit, micro saving, financial training, and advisory services on women’s economic empowerment in Sri Lanka. The population used in this research is microfinance women beneficiaries in Kurunegala District, and the researcher selected 380 microfinance women beneficiaries as the sample size of this study using random sampling technique. Data collection was conducted using structured, self-administered, web-based questionnaires and personal interviews, where the data set was analyzed using multiple linear regression analysis. The results of this research show that microcredit, micro savings, financial training, and advisory services significantly and positively impact women’s economic empowerment. Accordingly, the researcher recommends microfinance institutions to increase the granting of microcredit facilities to poor women in the Kurunagala district, as these institutions have given less loan amounts than applied. Also, it is recommended to reduce interest rates and increase payback periods, as high interest rates are an additional burden on the customers. Furthermore, the government should pay more attention to these low-income women and conduct some programs to improve their knowledge and careers. Meanwhile, microfinance institutions should improve their management capacity and strive to reach out to women in need to enhance their economic empowerment and improve their contribution to the workforce and economy.