Role of Microfinance in Social and Economic Empowerment of Women Entrepreneurs: A Study of Karnal district, Haryana

Abstract

Purpose – The objective of this research paper is to study the role of microfinance in advancing women’s social and economic empowerment including economic independence, decision-making power, and social status within households and communities in the Karnal District of Haryana, India. Microfinance has emerged as a critical tool for poverty alleviation and gender equality by providing financial services to marginalized populations, particularly women. The paper also studies the various problems faced by the women beneficiary to access microfinance services by using a mixed-method approach encompassing surveys and qualitative interviews.

Design/methodology/approach – The research paper is descriptive. Data is collected through a structured questionnaire. Purposive sampling was used. The respondents are women entrepreneurs and clients of microfinance institutions in the Karnal district of Haryana. A total of 200 women conducted in-person interviews to collect questionnaire responses.

Findings – The research study suggests that while microfinance has made notable contributions to women's socio-economic empowerment. The study concludes with policy recommendations to optimize the effectiveness of microfinance programs to enhance women’s empowerment in Karnal District and similar regions globally.

Research limitation - The findings of the study are limited to the Karnal district.

Originality - As far as it is understood, the research is genuine and unique. This provides an overview of how microfinance can assist women entrepreneurs to eradicate poverty and become socially and economically empowered. The study investigates the possibility of using microfinance to alleviate gender disparity.