ASSESSMENT OF THE SOCIO- ECONOMIC DETERMINANTS OF WOMEN EMPOWERMENT THROUGH MICRO FINANCE
CHAPTER ONE
INTRODUCTION
1.1 Background of the study
Over the last few decades, poverty reduction through women’s empowerment has become one of the most important strategies in both developing and developed countries around the world. The governments of the world’s poorest and fastest-growing countries worked hard to address the issue of poverty through various transactions and policies. Since the 1950s, the Indian government has experimented with various strategies to alleviate poverty and empower women both socially and economically. Since the 1970s, several strategies have been modified to address the problem of poverty. However, a large number of people are unable to meet their basic needs. Funding is the source of economic growth, and credit sees itself as a branch of it. The latter is correct. cultivates upright, allowing previous to expand horizontally. In other words, rapid growth of the financial system is dependent on a strong and resonant credit policy system in an economy. The unique feature of the microfinance program is that it focuses on women for development. The situation of a woman in the family improves with the assistance of microfinance; she receives greater respect in the family than before; she participates in decision-making and group meetings; and she acquires the liberty to shift for the betterment of the micro-business. Microfinance programs, in reality, promote economic, social, and political empowerment. Empowerment in the role of women’s development is a method of significant, demanding, and overcoming obstacles in a woman’s life during which she increases her capability to succeed. Describe her life and surroundings. It is an active, multifaceted development that should assist women in realizing their full independence and ability in all aspects of life. Microfinance and microcredit schemes play an important role in poverty alleviation policies. The term “rural microfinance” refers to “all financial services available to poor and low-income rural households and individuals” (IFAD 2009). During the 1970s, the inability of rural formal credit institutions or banks to efficiently contract by way of the credit necessities of the poor and women led to a philosophy of alternative strategies to deal with the problem of poverty, particularly among women. During this time, some non-governmental organizations (NGOs) experimented with grouping women, spreading knowledge, and releasing them. Since the 1980s, the state has shifted its strategy toward a “group-based approach” to deal with their socioeconomic vulnerability through the use of microfinance. NGOs that lived with the group of peoples closely observed and examined such women’s activities, which pictured alternative paradigms to replace the traditional women groups, in order to remind energetic contribution amongst all members of the women groups. This is pursued by the additional association of NGOs in the government’s progress approach. Mohammad Yunus’s experiment with the Grameen Bank project in Bangladesh improved the concept of microfinance in India in the 1980s, and many other countries such as Indonesia, the Philippines, Kenya, Latin America, and Central America followed suit. Sri Lanka, too, has taken this approach with a variety of models. This eventually led to numerous debates, seminars, works, and studies on the concept of ‘Microfinance’ and ‘Women Empowerment’ all over the world, including India, and a modest achievement in that made the state to shift its strategy further towards the “group based approach” since the 1980s. NGOs that lived with the group of peoples closely observed and examined such women’s activities, which pictured alternative paradigms to replace the traditional women groups, in order to remind energetic contribution amongst all members of the women groups. This is pursued by the additional association of NGOs in the government’s progress approach. The In the 1980s, Mohammad Yunus’s experiment with the Grameen Bank project improved the concept of microfinance in India. Many other countries, including Indonesia, the Philippines, Kenya, Latin America, Central America, and Sri Lanka, followed suit with a variety of different models. This led to numerous debates, seminars, works, and studies on the concepts of ‘Microfinance’ and ‘Women Empowerment’ all over the world, including India.
1.2 Statement of research problem
When the microfinance institution Grameen Bank and its founder Muhammad Yunus were awarded the Nobel Peace Prize in 2006: “[…] for their efforts to create economic and social development from below[…]” which would ultimately enhance democracy and human rights11, it signaled to the world that microfinance played an important, if not the most important, role in combating poverty. From the perspective of a (micro finance) business in growth, and with Grameen Bank as a model for success at large, it is interesting to examine the assumption that micro finance truly creates social and economic development from below, and that as a result, democracy advances and deepens. The study will also look at how empowering women through Microfinance banks are impacted by lending and their inability to repay what was borrowed.
1.3 Objectives of the study
The following is the study’s primary goal:
1. Determine the socioeconomic impact of empowerment through microfinance on women.
2. Determine whether women participating in a microfinance program have gained economic empowerment through the assistance of microcredit organizations.
3. To learn how microfinance organizations can improve and make lending more accessible to women.
1.4 Research questions
For the purposes of this study, the following questions have been prepared:
1. Can microfinance activities lead to economic development for women?
2. Do you believe that women who participate in a microfinance program have gained economic empowerment?
3. Do you believe microfinance organizations can make lending more accessible to women?
1.5 Significance of the study
This study will focus on the socioeconomic factors that influence women’s empowerment through microfinance.
The findings of this research will undoubtedly provide much needed information to government organizations, non-governmental organizations (NGOs), banks, microfinance organizations, individuals, and academia.
1.6 Scope of the study
The purpose of this research is to look into the socioeconomic factors that influence women’s empowerment through microfinance. As a result, this study is limited to microfinance banks in Lagos state.
1.7 Limitations of the study
A number of factors hampered this study, which are as follows:
Given the current economic conditions, financial constraints are unavoidable. Due to a lack of funds at the researchers’ disposal to obtain materials and print questionnaires. It was not possible to visit some police stations or some victims of corruption.
In developing countries such as Nigeria, there is a data shortage.
Time constraint: Another constraint is time, which makes it difficult for the researcher to shuttle between writing the research and engaging in other academic work.
1.8 Operational definition of terms
Assessment: the process of evaluating someone or something.
The interaction of social and economic factors is referred to as socio-ecomic.
Determinant:
Empowerment: a factor that has a significant impact on the nature or outcome of something.
Micro finance, also known as microcredit, is a type of banking service offered to unemployed or low-income individuals or groups who would not otherwise have access to financial services.