Empowering Women Through Microfinance: Pathways To Financial Freedom And Business Success
Chowdhury, Nusrat Jahan Afsana
Lecturer, Bangladesh Institute of Capital Market (BICM), Dhaka, Bangladesh
Ahmed, Syed Kamrul Hossain
Lecturer, Bangladesh Institute of Capital Market (BICM), Dhaka, Bangladesh
Abstract
Microfinance has emerged as a transformative tool for economic empowerment, particularly in developing economies such as Bangladesh. Rooted in the pioneering efforts of the Rural Social Services project in 1974 and further institutionalized by the Grameen Bank and other non-governmental organizations during the late 1970s and early 1980s, microfinance has evolved into a major driver of financial inclusion and poverty alleviation. By offering interest-free and collateral-free loans, microfinance has created pathways for marginalized communities—especially women—to access financial resources and engage in entrepreneurial activities.
In Bangladesh, the significance of microfinance is evident in its contribution to national income, with total disbursements reaching BDT 2857.57 billion in 2023, equivalent to 5.67% of the country’s GDP. Given that women account for nearly 90% of clients served by Microfinance Institutions (MFIs) registered under the Microcredit Regulatory Authority, the share of disbursements to women alone represents approximately 5.09% of GDP. This highlights the central role of women in sustaining the microfinance sector and underscores its broader economic impact. Comparative studies from Pakistan and Uganda reinforce this perspective, illustrating that women’s participation in microfinance contributes not only to their financial independence but also to community development, entrepreneurial growth, and enhanced social resilience.
In Bangladesh, the implementation of microfinance programs has been linked to improvements in income levels, housing conditions, food security, and overall decision-making power of women. These initiatives not only empower women financially but also encourage greater social inclusion, foster community solidarity, and expand opportunities for sustainable development. The findings affirm that microfinance is more than a financial service—it is a vehicle for social transformation, entrepreneurial advancement, and inclusive economic growth