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Research Article Open access CC BY 4.0

Contribution of Microfinance Institutions to Women Socio-economic Empowerment: A Case of BRAC Branch Iringa Municipal Council, Tanzania

Mary G. Maghina, Sosthenes Ruheza, Frank P. Mwangole

Asian Journal of Economics, Business and Accounting · pp. 232–247 · Published 3 Nov 2023

10.9734/ajeba/2023/v23i221149

Abstract

This study investigates the role of microfinance institutions (MFIs), with a focus on the BRAC Branch in Iringa Municipality, Tanzania, in enhancing the socio-economic empowerment of women. Using a non-experimental cross-sectional research design, primary data was collected from 66 respondents, complemented by interviews with key informants from the BRAC Institution. The research employed systematic simple random and probability sampling techniques, utilizing questionnaires and interviews as research tools, with data analysis conducted using the Statistical Package for Social Sciences (SPSS). The study aimed to assess the impact of MFIs on women's entrepreneurship skills, examine their influence on income generation, and evaluate their role in enhancing social respect among women. MFIs, particularly the BRAC Branch, have played a pivotal role in improving the entrepreneurship skills of women borrowers. Access to resources, capital, and training has empowered women to develop and enhance their entrepreneurial capabilities. MFIs have significantly contributed to the income generation of women. By providing accessible financial services tailored to their needs, women have been able to invest in and expand their businesses, resulting in sustainable income and improved financial well-being. The study underscores the instrumental role of MFIs in enhancing social respect for women. As women become financially independent through active participation in economic activities, they gain recognition and respect within their communities. This has led to increased confidence and challenges to traditional gender norms. This research highlights the substantial strides made by microfinance institutions, particularly the BRAC Branch in Iringa Municipality, in empowering women socio-economically. The positive impacts on women's entrepreneurship skills, income generation, and social respect are evident. To further strengthen this contribution, collaborative efforts involving the government and stakeholders are recommended. Extending loan repayment periods, increasing maximum loan amounts, and providing accessible collateral options are crucial steps toward ensuring continued empowerment. These findings underscore the critical role of MFIs in advancing gender equality and socio-economic development in Tanzania.

Microfinance Institutions empowerment women socio - economic empowerment

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Cited by 4

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