A Study on the Role of Microfinance in Promoting Entrepreneurship Among Women

Microfinance has become a significant financial instrument for fostering entrepreneurship within economically disadvantaged communities, especially among women. Women frequently encounter obstacles such as insufficient access to credit, limited financial knowledge, and societal constraints that hinder their full engagement in entrepreneurial endeavors. Microfinance institutions (MFIs) tackle these issues by offering small loans, savings options, insurance, and financial assistance to those who are marginalized by conventional banking systems. This study examines the role of microfinance in promoting entrepreneurship among women and its impact on economic empowerment and social status. The research adopts a descriptive research design and collects data through structured questionnaires from women beneficiaries of microfinance services. Secondary data sources such as journals, reports, and research publications are also used to support the study. The findings reveal that microfinance services have significantly contributed to the development of women entrepreneurs by enabling them to establish small businesses, improve income levels, and achieve financial independence. The study also highlights the challenges faced by women entrepreneurs and suggests measures to strengthen microfinance programs for sustainable economic development.