Assessing the Impact of Microfinance On women’s Empowerment In Developing Countries

Abstract

This research investigates how microfinance supports women's empowerment in Nepal, particularly regarding financial independence, decision-making power, and entrepreneurial activities. This study combines different research methods for analyzing Microfinance Institutions (MFIs), Self-Help Groups (SHGs), and Non-Governmental Organizations (NGOs) in their operational role. The study examines specific obstacles that originate from financial illiteracy, along with gender norms, as well as institutional inefficiencies that reduce microfinance program success rates. The research demonstrates that microfinance leads to improved income levels, improved leadership capabilities, and enhanced economic involvement by women. The main obstacles to effective microfinance programs include social barriers, excessive interest rates, and borrowers becoming excessively indebted.

This study examines microfinance effectiveness using a Finnish comparison to show how education programs, government support, and online financial services improve microfinance success rates. According to the research, Nepal requires policy reforms, financial education initiatives, and strengthened institutional systems to reap the full benefits of microfinance for women's empowerment. These areas require intensive support because they will determine the success of long-term gender equality and economic inclusion.