IDEAS home Printed from https://ideas.repec.org/a/rnd/arimbr/v15y2023i2p1-13.html
   My bibliography  Save this article

The Effectiveness of Microfinance Program on Women’s Empowerment: Location as Moderator

Author

Listed:
  • Maryam Jameelah Hashim
  • Mohammad Izzat Naqib Yusof
  • Nur Dina Athia Ramley

Abstract

Women are an engine for economic growth and a value creator for businesses. Though women contribute roughly 40-50% of all small business related in developing countries, they represent fewer than 20% of the world’s landholders, and often their access and control of resources, particularly income, is comparatively lower than that of men. This prevents them from actively driving economic growth and productivity in the business chain. With the help of Amanah Ikhtiar Malaysia (AIM), this study will reach out to the participant of AIM to understand the issue of women’s empowerment. This research focuses on 3 main components: the involvement of microfinance programs, social capital, and training. A survey designed for the participants of AIM was used to gather data from over 375 participants to study the effectiveness of Islamic microfinance in improving women’s empowerment in business. A partial least square-structural equation (PLS-SEM) was used to analyze the research model. Subsequently, the research model was validated using Smart PLS 4 and proposed the study hypothesis. The findings confirmed that involvement in microfinance programs, and social capital, except training, positively influenced women’s empowerment in business. Geographical location as moderator was also found to be non-significant towards women’s empowerment.

Suggested Citation

  • Maryam Jameelah Hashim & Mohammad Izzat Naqib Yusof & Nur Dina Athia Ramley, 2023. "The Effectiveness of Microfinance Program on Women’s Empowerment: Location as Moderator," Information Management and Business Review, AMH International, vol. 15(2), pages 1-13.
    • Handle: RePEc:rnd:arimbr:v:15:y:2023:i:2:p:1-13
    DOI: 10.22610/imbr.v15i2(I).3367
    as

    Download full text from publisher

    File URL: https://ojs.amhinternational.com/index.php/imbr/article/view/3367/2183
    Download Restriction: no
    File URL: https://ojs.amhinternational.com/index.php/imbr/article/view/3367
    Download Restriction: no
    File URL: https://libkey.io/10.22610/imbr.v15i2(I).3367?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Luminita Postelnicu & Niels Hermes, 2018. "Microfinance Performance and Social Capital: A Cross-Country Analysis," Journal of Business Ethics, Springer, vol. 153(2), pages 427-445, December.
    2. Maren Duvendack & Philip Mader, 2019. "Impact of financial inclusion in low‐ and middle‐income countries: A systematic review of reviews," Campbell Systematic Reviews, John Wiley & Sons, vol. 15(1-2), June.
    3. Jamal, M. Abdul & Raihana, Amatul Khadir Ayesha & Sultana, H. Yasmeen, 2016. "Empowerment of Muslim Women through Microfinance and Self Help Groups: A Case Study of Chennai City," Asian Business Review, Asian Business Consortium, vol. 6(2), pages 117-124.
    4. Syed Hussain Haider & Muzaffar Asad & Minaa Fatima & Rana Zain Ul Abidin, 2017. "Microfinance and Performance of Micro and Small Enterprises: Does Training have an Impact," Journal of Entrepreneurship and Business Innovation, Macrothink Institute, Journal of Entrepreneurship and Business Innovation, vol. 4(1), pages 113-113, December.
    5. Noor, Mohd & Mat, Siti & Hakim, Roslan, 2013. "Impak Kredit Mikro ke atas Ketaksamarataan Pendapatan di Kalangan Sahabat Amanah Ikhtiar," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 47(1), pages 75-86.
    6. repec:eme:mfppss:03074350410769281 is not listed on IDEAS
    7. Zainudin Awang & Wan Mohamad Asyraf Wan Afthanorhan & M.A.M. Asri, 2015. "Parametric and Non Parametric Approach in Structural Equation Modeling (SEM): The Application of Bootstrapping," Modern Applied Science, Canadian Center of Science and Education, vol. 9(9), pages 1-58, September.
    8. Faridi, Muhammad Zahir & Nawaz, Shazia & Bibi, Sadia, 2022. "Islamic Microfinance and Women Entrepreneurial Success: Mediating Role of Human Capital," Journal of Accounting and Finance in Emerging Economies, CSRC Publishing, Center for Sustainability Research and Consultancy Pakistan, vol. 8(1), pages 1-12, March.
    9. Maren Duvendack & Philip Mader, 2020. "Impact Of Financial Inclusion In Low‐ And Middle‐Income Countries: A Systematic Review Of Reviews," Journal of Economic Surveys, Wiley Blackwell, vol. 34(3), pages 594-629, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Díaz, Juan-José & Saldarriaga, Victor, 2023. "A drop of love? Rainfall shocks and spousal abuse: Evidence from rural Peru," Journal of Health Economics, Elsevier, vol. 89(C).
    2. Conrad Murendo & Gamuchirai Murenje & Pepukai Prince Chivenge & Rumbidzai Mtetwa, 2021. "Financial Inclusion, Nutrition and Socio‐Economic Status Among Rural Households in Guruve and Mount Darwin Districts, Zimbabwe," Journal of International Development, John Wiley & Sons, Ltd., vol. 33(1), pages 86-108, January.
    3. Hillesland, Marya & Kaaria, Susan & Mane, Erdgin & Alemu, Mihret & Slavchevska, Vanya, 2022. "Does a joint United Nations microfinance ‘plus’ program empower female farmers in rural Ethiopia? Evidence using the pro-WEAI," World Development, Elsevier, vol. 156(C).
    4. Thereza Balliester Reis, 2022. "Socio‐economic determinants of financial inclusion: An evaluation with a microdata multidimensional index," Journal of International Development, John Wiley & Sons, Ltd., vol. 34(3), pages 587-611, April.
    5. Singh Tanu & Pande Sarveshwar, 2023. "Indian Government Schemes Based Analysis on Women Empowerment In Financial Inclusion," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 33(4), pages 1-22, December.
    6. Isaac Koomson & Raymond Elikplim Kofinti & Esther Laryea, 2024. "Financial inclusion and multidimensional child poverty," Review of Economics of the Household, Springer, vol. 22(1), pages 237-260, March.
    7. Camila Perera & Shivit Bakrania & Alessandra Ipince & Zahrah Nesbitt‐Ahmed & Oluwaseun Obasola & Dominic Richardson, 2021. "PROTOCOL: Impact of social protection on gender equality in low‐ and middle‐income countries: A systematic review of reviews," Campbell Systematic Reviews, John Wiley & Sons, vol. 17(2), June.
    8. Camila Perera & Shivit Bakrania & Alessandra Ipince & Zahrah Nesbitt‐Ahmed & Oluwaseun Obasola & Dominic Richardson & Jorinde Van de Scheur & Ruichuan Yu, 2022. "Impact of social protection on gender equality in low‐ and middle‐income countries: A systematic review of reviews," Campbell Systematic Reviews, John Wiley & Sons, vol. 18(2), June.
    9. Patrick-Hervé Mbouombouo Mfossa, 2019. "Mobile Money-Driven Financial Inclusion and Financial Resilience in Sub-Saharan Africa: Insights from Cameroon [L’inclusion financière via le mobile money et résilience financière en Afrique Subsah," Post-Print hal-03622403, HAL.
    10. Unnikrishnan, Vidhya & Pinet, Melanie & Marc, Lukasz & Boateng, Nathaniel Amoh & Boateng, Ethel Seiwaa & Pasanen, Tiina & Atta-Mensah, Maya & Bridonneau, Sophie, 2022. "Impact of an integrated youth skill training program on youth livelihoods: A case study of cocoa belt region in Ghana," World Development, Elsevier, vol. 151(C).
    11. Razak M Gyasi & Siaw Frimpong & Gilbert Kwabena Amoako & Anokye M Adam, 2021. "Financial inclusion and physical health functioning among aging adults in the sub-Saharan African context: Exploring social networks and gender roles," PLOS ONE, Public Library of Science, vol. 16(6), pages 1-15, June.
    12. Rafael Goldszmidt & Patrick Behr & Cesar Zucco & Anna-Katharina Lenz & Lauro Gonzalez & Martin Valdivia, 2022. "Microcredit Impacts: Evidence from a Large-Scale Observational Study in Brazil," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(4), pages 1940-1966, August.
    13. Baozhen Chen & Jinzheng Ren, 2022. "Does the Adoption of Digital Payment Improve the Financial Availability of Farmer Households? Evidence from China," Agriculture, MDPI, vol. 12(9), pages 1-20, September.
    14. Mais Sha'ban & Claudia Girardone & Anna Sarkisyan & Thankom Arun, 2023. "On the relationship between financial inclusion and bank performance," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 52(3), November.
    15. Kais Tissaoui & Abdelaziz Hakimi & Taha Zaghdoudi, 2024. "Can financial inclusion enhance human development? Evidence from low- and middle-income countries," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-14, December.
    16. Maren Duvendack & Philip Mader, 2020. "Impact Of Financial Inclusion In Low‐ And Middle‐Income Countries: A Systematic Review Of Reviews," Journal of Economic Surveys, Wiley Blackwell, vol. 34(3), pages 594-629, July.
    17. Mwale, Martin Limbikani & Chirwa, Gowokani Chijere & Mchenga, Martina & Zabula, Tayamika Kamwanja, 2021. "Micro-finance and women’s perception of domestic violence in a fragile state," World Development Perspectives, Elsevier, vol. 24(C).
    18. Etienne Lwamba & Shannon Shisler & Will Ridlehoover & Meital Kupfer & Nkululeko Tshabalala & Promise Nduku & Laurenz Langer & Sean Grant & Ada Sonnenfeld & Daniela Anda & John Eyers & Birte Snilstveit, 2022. "Strengthening women's empowerment and gender equality in fragile contexts towards peaceful and inclusive societies: A systematic review and meta‐analysis," Campbell Systematic Reviews, John Wiley & Sons, vol. 18(1), March.
    19. Milford Bateman, 2024. "Land Titling and Microcredit in Cambodia: Examining the Reality of Hernando de Soto’s ‘Three Steps to Heaven’," Land, MDPI, vol. 13(4), pages 1-31, April.
    20. Cherry Wyle G. Layaoen & Kazushi Takahashi, 2022. "Can microfinance lending crowd out informal lenders? Evidence from the Philippines," Journal of International Development, John Wiley & Sons, Ltd., vol. 34(2), pages 379-414, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rnd:arimbr:v:15:y:2023:i:2:p:1-13. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Muhammad Tayyab (email available below). General contact details of provider: https://ojs.amhinternational.com/index.php/imbr .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.