Microfinancing on Women Entrepreneurship

Abstract

Microfinancing is an innovative strategy for women entrepreneurship in developing countries. However, the research is not in the parallel stream. Therefore, the study investigates the role of microfinancing in women's entrepreneurship in Nepal. It considers quantitative and qualitative research strategies in light of pragmatism. The study surveyed 87 women entrepreneurs and interviewed one manager from the case company using Microsoft Teams and Forms. Consequently, it uses content analysis to pattern the qualitative data and SPSS software for descriptive statistics.

Empirical findings indicate that microfinance is an economic development tool for including underprivileged citizens and offering various financial support with necessary guidance. Generally, microfinance empowers women to pursue entrepreneurial goals in Nepal, such as setting up small agriculture, retail, and handicraft businesses. Moreover, different types of microfinancing are favorable and flexible loans, saving practices, crisis management, business consultancy, support training, mentorship, and networking opportunities. Consequently, microfinance has been a cornerstone for women's entrepreneurship regarding gender inequality and boosting self-reliance and socio-economic development. According to human capital theory, women's entrepreneurship is a mainstream economic development approach.

The study suggests that microfinance institutions (MFIs) should offer more flexible and alternative loan opportunities and training programs for business development. The government should also take policies and pragmatic initiatives fostering long-term women's financial empowerment to build a more inclusive entrepreneurial ecosystem in Nepal.