ANJUMAN-I-ISLAM’S

M.H. SABOO SIDDIK

POLYTTECHNIC
8,SabooSiddik Polytechnic Road, Mumbai-08

SR NO. NAME ROLL NO.

1 Amaan virani 210821
2 Momin Arham Sajid 20818
3 Siddiqua khatri 20815

TOPIC: Micro financing for womens entrepreneurs.

BRANCH :INFORMATION TECHNOLOGY

COURSE CODE:Information Technology

SUBJECT:EDE

AIM:To understand and learn how can women’s can be

empowered with a the help of micro financing.
ACADEMIC YEAR:2023-2024.

UNDER THE GUIDANCE: Noorusaba mam

1
 ACTION PLAN

Rationale: With the help of this project we learned that how we can
what is the importance of micro financing in women empowerment
and how it can be used for making more and more women
entrepreneurs.
Benefits: Helped to understand how important is entrepreneurship
For women’s and how micro financing can help them to become
empowered.

Course outcomes achieved:

 Learn how micro financing works.

 Women’s entrepreneurship has become a preferred method for
economic development.
 The most empowering thing for women in the developing world
is having their own .

Actual methodology followed:

I. Week 1: The teacher made a group of 4 students and gave the
micro-project topic.

II. Week 2: The Micro-project was divided into group members.

III. Week 3:The information was searched on the internet and noted.

IV. Week 4:The memberscollected information and compiled it

V. Week 5:The Report was being made.

2
VI. Week 6:The report was completed

VII. Week 7:The Project & report was submitted to the teacher.

Application: Using this project we can easily understand the meaning

of micro financing and how it is being use as a power tool to
empower not just a woman entrepreneurs but also economy of
nation.

Skills developed/learning Outcomes: This project has helped us to

understand that micro financing helping thousands of to become
empowered and to their own business.

Microfinance: empowering female entrepreneurs

Microfinance can help women to fight their way out of poverty, but financial
inclusion alone is not enough to spur significant economic development

Microfinance: empowering female entrepreneursVillagers in Bangalore

received a loan from microfinance firm RENACA
BANKING
As well as being a seminal quote from John F Kennedy’s inaugural address,
“help them help themselves” is an idea that has long been discussed and
explored with respect to the global poverty agenda. As a result, when
microfinance – a mechanism that provides financial services to those who do
not otherwise have access – was unveiled in 1983, it was hailed as
revolutionary. Finally, here was a method designed to alleviate poverty the
world over, precisely by helping people to help themselves.

Yet in the years that followed, criticism from various outlets has clouded much
of the good that microfinance can still achieve. Of course, there is no smoke

3
without fire, and unfortunately there are those who seek to profit from
vulnerable individuals – but that is not the only ending to this particular story.

The incredible thing about microfinance is its potential to both spur economic
activity within a community and challenge the status quo. This is particularly
the case for women in developing economies, who face even greater barriers
when it comes to accessing financial services than their husbands and fathers.
The ripple effect:

Without access to their own bank accounts, individuals living in

poverty-stricken communities must rely on informal employment,
which affords them little security and very few rights. Furthermore,
as starting and growing a business is virtually impossible without
access to financial services, people in these communities are
extremely restricted in terms of the opportunities available to them.
These restrictions, together with an informal vehicle for saving, mean
a significant segment of the populace is simply unable to push their
way out of poverty.

Such scenarios are not only prevalent due to the nature of living
within a low income society; in the case of women, they are also
driven by cultural nuances and governmental regulations.

Supporting women’s entrepreneurship has become a

preferred method for economic development

Rupert Scofield, Founder and CEO of microfinance institution Finca,

told World Finance: “In many countries where we work, cultural
norms deny women the opportunity to seek employment or start
their own businesses. At Finca, we made it our mission to redress
this enormous waste of valuable and productive human resources.
We provide many enterprising women with the resources to start
their own businesses.”

4
As argued by Linda M Scott, Professor of Entrepreneurship and
Innovation at Oxford University, in her paper Thinking Critically
About Women’s Entrepreneurship in Developing Countries, in
developed nations, women’s entrepreneurship is supported as part
of an overall drive to promote growth. In developing countries,
however, international dialogue is centred on it being a strategy for
poverty alleviation.
In part, this is due to the cumulative effect women’s entrepreneurship can
have within a community. Scofield agreed with Scott: “Micro-credit
schemes, for example, have been directed almost exclusively at women,
because, it is argued, women invest the money in goods and services that
improve the wellbeing of families, in goods that are conducive to
development.” As the income of men does not produce the same ripple effect
within a community, supporting women’s entrepreneurship has become a
preferred method for economic development.
It has been argued that there is a bidirectional relationship between women’s
empowerment and economic development, because with the former comes
access to the crucial components of the latter. This includes healthcare,
education and income opportunities, social rights and political participation –
and vice versa.
In her paper Women Empowerment and Economic Development, Esther
Duflo wrote: “In one direction, development alone can play a major role in
driving down inequality between men and women; in the other direction,
continuing discrimination against women can, as [Amartya] Sen has
forcefully argued, hinder development. Empowerment can, in other words,
accelerate development.”
Fortunately, it has become increasingly evident within the international
community that gender inequality is a cause of poverty, rather than an
outcome, and should be treated as such. As Scott wrote: “‘Gaining the
benefits’ of inclusion is a purposefully positive way to spin ‘avoiding the
damage’ caused by inequality.”

Microfinance: empowering female entrepreneurs

Microfinance can help women to fight their way out of poverty, but financial
inclusion alone is not enough to spur significant economic development

5
Microfinance: empowering female entrepreneursVillagers in Bangalore
received a loan from microfinance firm RENACA
BANKING
Author: Elizabeth Matsangou
April 19, 2017
As well as being a seminal quote from John F Kennedy’s inaugural address,
“help them help themselves” is an idea that has long been discussed and
explored with respect to the global poverty agenda. As a result, when
microfinance – a mechanism that provides financial services to those who do
not otherwise have access – was unveiled in 1983, it was hailed as
revolutionary. Finally, here was a method designed to alleviate poverty the
world over, precisely by helping people to help themselves.

Yet in the years that followed, criticism from various outlets has clouded much
of the good that microfinance can still achieve. Of course, there is no smoke
without fire, and unfortunately there are those who seek to profit from
vulnerable individuals – but that is not the only ending to this particular story.

The incredible thing about microfinance is its potential to both spur economic
activity within a community and challenge the status quo. This is particularly
the case for women in developing economies, who face even greater barriers
when it comes to accessing financial services than their husbands and fathers.
Given that 80 percent of microfinance institutions’ poorest clients are women
who live on less than $1.25 a day, according to the State of the Microcredit
Summit Campaign Report 2012, microfinance products, from micro-loans to
micro-insurance, can be life changing.

The ripple effect

Without access to their own bank accounts, individuals living in poverty-
stricken communities must rely on informal employment, which affords them
little security and very few rights. Furthermore, as starting and growing a
business is virtually impossible without access to financial services, people in
these communities are extremely restricted in terms of the opportunities
available to them. These restrictions, together with an informal vehicle for
saving, mean a significant segment of the populace is simply unable to push
their way out of poverty.

Such scenarios are not only prevalent due to the nature of living within a low
income society; in the case of women, they are also driven by cultural nuances
and governmental regulations.

6
Supporting women’s entrepreneurship has become a preferred method for
economic development

Rupert Scofield, Founder and CEO of microfinance institution Finca, told World
Finance: “In many countries where we work, cultural norms deny women the
opportunity to seek employment or start their own businesses. At Finca, we
made it our mission to redress this enormous waste of valuable and productive
human resources. We provide many enterprising women with the resources to
start their own businesses.”

As argued by Linda M Scott, Professor of Entrepreneurship and Innovation at

Oxford University, in her paper Thinking Critically About Women’s
Entrepreneurship in Developing Countries, in developed nations, women’s
entrepreneurship is supported as part of an overall drive to promote growth.
In developing countries, however, international dialogue is centred on it being
a strategy for poverty alleviation.

In part, this is due to the cumulative effect women’s entrepreneurship can

have within a community. Scofield agreed with Scott: “Micro-credit schemes,
for example, have been directed almost exclusively at women, because, it is
argued, women invest the money in goods and services that improve the
wellbeing of families, in goods that are conducive to development.” As the
income of men does not produce the same ripple effect within a community,
supporting women’s entrepreneurship has become a preferred method for
economic development.

It has been argued that there is a bidirectional relationship between women’s

empowerment and economic development, because with the former comes
access to the crucial components of the latter. This includes healthcare,
education and income opportunities, social rights and political participation –
and vice versa.

In her paper Women Empowerment and Economic Development, Esther Duflo

wrote: “In one direction, development alone can play a major role in driving
down inequality between men and women; in the other direction, continuing
discrimination against women can, as [Amartya] Sen has forcefully argued,
hinder development. Empowerment can, in other words, accelerate
development.”

7
Fortunately, it has become increasingly evident within the international
community that gender inequality is a cause of poverty, rather than an
outcome, and should be treated as such. As Scott wrote: “‘Gaining the
benefits’ of inclusion is a purposefully positive way to spin ‘avoiding the
damage’ caused by inequality.”
Education, Education, Education
Access to financial services can help to reduce gender inequality in
developing nations by establishing a new role for women within the
household: by bringing in her own income, a woman’s dependency on her
husband is reduced and her bargaining power is increased.
“The most empowering thing for women in the developing world is having
their own income that is not controlled by their husbands”, Scofield
explained. “When they have resources of their own and don’t have to beg
their husbands for money, it completely changes the family dynamics.
Suddenly the woman in the family is seen as an important and vital
contributor by the husband and children. Sadly, before this transition, women
are often disrespected and treated no better than the animals”.
This too has a cumulative effect: the more women who are empowered in this
way, the more likely it is their peers will follow suit. Scofield told World
Finance: “We have further noted that women-owned and women-operated
businesses generally employ other women, so there is a ripple effect in the
community. As one successful woman social entrepreneur put it, when
women run their own businesses, there is no problem of a glass ceiling.”
Importantly, the daughters of such women will be afforded more
opportunities than their mothers, particularly in terms of education –
something that is fundamental in the fight against poverty. In his address to
the UN World Conference on Women in 1995, then-President of the World
Bank James Wolfensohn highlighted: “Education for girls has a catalytic
effect on every dimension of development: lower child and maternal
mortality rates; increased educational attainment by daughters and sons;
higher productivity; and improved environmental management. Together,
these can mean faster economic growth and, equally important, wider
distribution of the fruits of growth.”
As argued by Wolfensohn, the more education girls receive, the more women
there will be in leadership roles in all aspects of society. The way in which
communities resolve problems and make decisions could therefore be
transformed.

8
Microfinance: empowering female entrepreneurs
Microfinance can help women to fight their way out of poverty, but financial
inclusion alone is not enough to spur significant economic development

Microfinance: empowering female entrepreneursVillagers in Bangalore

received a loan from microfinance firm RENACA
BANKING
Author: Elizabeth Matsangou
April 19, 2017
As well as being a seminal quote from John F Kennedy’s inaugural address,
“help them help themselves” is an idea that has long been discussed and
explored with respect to the global poverty agenda. As a result, when
microfinance – a mechanism that provides financial services to those who do
not otherwise have access – was unveiled in 1983, it was hailed as
revolutionary. Finally, here was a method designed to alleviate poverty the
world over, precisely by helping people to help themselves.

Yet in the years that followed, criticism from various outlets has clouded
much of the good that microfinance can still achieve. Of course, there is no
smoke without fire, and unfortunately there are those who seek to profit from
vulnerable individuals – but that is not the only ending to this particular
story.

The incredible thing about microfinance is its potential to both spur economic
activity within a community and challenge the status quo. This is particularly
the case for women in developing economies, who face even greater barriers
when it comes to accessing financial services than their husbands and fathers.
Given that 80 percent of microfinance institutions’ poorest clients are women

9
who live on less than $1.25 a day, according to the State of the Microcredit
Summit Campaign Report 2012, microfinance products, from micro-loans to
micro-insurance, can be life changing.

The ripple effect

Without access to their own bank accounts, individuals living in poverty-
stricken communities must rely on informal employment, which affords them
little security and very few rights. Furthermore, as starting and growing a
business is virtually impossible without access to financial services, people in
these communities are extremely restricted in terms of the opportunities
available to them. These restrictions, together with an informal vehicle for
saving, mean a significant segment of the populace is simply unable to push
their way out of poverty.

Such scenarios are not only prevalent due to the nature of living within a low
income society; in the case of women, they are also driven by cultural
nuances and governmental regulations.

Supporting women’s entrepreneurship has become a preferred method for

economic development

Rupert Scofield, Founder and CEO of microfinance institution Finca, told

World Finance: “In many countries where we work, cultural norms deny
women the opportunity to seek employment or start their own businesses. At
Finca, we made it our mission to redress this enormous waste of valuable and
productive human resources. We provide many enterprising women with the
resources to start their own businesses.”

As argued by Linda M Scott, Professor of Entrepreneurship and Innovation at

Oxford University, in her paper Thinking Critically About Women’s
Entrepreneurship in Developing Countries, in developed nations, women’s
entrepreneurship is supported as part of an overall drive to promote growth.

10
In developing countries, however, international dialogue is centred on it
being a strategy for poverty alleviation.

In part, this is due to the cumulative effect women’s entrepreneurship can

have within a community. Scofield agreed with Scott: “Micro-credit
schemes, for example, have been directed almost exclusively at women,
because, it is argued, women invest the money in goods and services that
improve the wellbeing of families, in goods that are conducive to
development.” As the income of men does not produce the same ripple effect
within a community, supporting women’s entrepreneurship has become a
preferred method for economic development.

It has been argued that there is a bidirectional relationship between women’s

empowerment and economic development, because with the former comes
access to the crucial components of the latter. This includes healthcare,
education and income opportunities, social rights and political participation –
and vice versa.

In her paper Women Empowerment and Economic Development, Esther

Duflo wrote: “In one direction, development alone can play a major role in
driving down inequality between men and women; in the other direction,
continuing discrimination against women can, as [Amartya] Sen has
forcefully argued, hinder development. Empowerment can, in other words,
accelerate development.”

Fortunately, it has become increasingly evident within the international

community that gender inequality is a cause of poverty, rather than an
outcome, and should be treated as such. As Scott wrote: “‘Gaining the
benefits’ of inclusion is a purposefully positive way to spin ‘avoiding the
damage’ caused by inequality.”

Education, Education, Education

11
Access to financial services can help to reduce gender inequality in
developing nations by establishing a new role for women within the
household: by bringing in her own income, a woman’s dependency on her
husband is reduced and her bargaining power is increased.

“The most empowering thing for women in the developing world is having
their own income that is not controlled by their husbands”, Scofield
explained. “When they have resources of their own and don’t have to beg
their husbands for money, it completely changes the family dynamics.
Suddenly the woman in the family is seen as an important and vital
contributor by the husband and children. Sadly, before this transition, women
are often disrespected and treated no better than the animals”.

This too has a cumulative effect: the more women who are empowered in this
way, the more likely it is their peers will follow suit. Scofield told World
Finance: “We have further noted that women-owned and women-operated
businesses generally employ other women, so there is a ripple effect in the
community. As one successful woman social entrepreneur put it, when
women run their own businesses, there is no problem of a glass ceiling.”

Importantly, the daughters of such women will be afforded more

opportunities than their mothers, particularly in terms of education –
something that is fundamental in the fight against poverty. In his address to
the UN World Conference on Women in 1995, then-President of the World
Bank James Wolfensohn highlighted: “Education for girls has a catalytic
effect on every dimension of development: lower child and maternal
mortality rates; increased educational attainment by daughters and sons;
higher productivity; and improved environmental management. Together,
these can mean faster economic growth and, equally important, wider
distribution of the fruits of growth.”

As argued by Wolfensohn, the more education girls receive, the more women
there will be in leadership roles in all aspects of society. The way in which
communities resolve problems and make decisions could therefore be
transformed.

12
Obstacles to overcome
While it is evident that empowering women is crucial for economic
development, and that microfinance can act as a key to unlocking this door,
there is a snag in the system: microfinance supports women’s empowerment
– and, in turn, more education for girls – but without education in the first
place, the power of microfinance can be limited.

Many women in eastern and southern Africa, for example, seldom attend
primary school for more than a few years, while secondary school attendance
is even rarer. However, as education is a crucial accompaniment to financial
services, eliminating the barriers around obtaining credit can often be futile.
Without business training and financial literacy, many women living in
extreme poverty are simply unable to understand the caveats of the loans they
are taking out, nor are they able to keep track of their finances, and spiralling
credit can be a result.

Poverty is a battle – to successfully conquer it, those living in its grip must
have the right weapons and tools

What’s more, even with access to capital, proficiency in the skills needed to
navigate financial products, and the entrepreneurial drive and creativity to
create a successful business from scratch, circumstances can simply limit
what these women achieve. For example, as discussed in Scott’s paper, if a
woman selling fruit wished to add value to her products by making jam or
chutney, her circumstances may prevent her from doing so, even if she had
financial backing.

13
Specifically, many homes in remote areas have makeshift stoves, meaning
heat cannot be controlled, while ingredients or condiments to add variation to
the products are not obtainable. Neither may it be possible to sterilise jars –
indeed, the jars themselves may not even be available.

As such, there are places in which micro-loans are offered to the poor, even
when there is little opportunity for investment. In such situations in
Bangladesh, it has been noted that women use their loans to purchase plane
tickets for their husbands to work abroad, many of whom send remittances
but never return home. Though these payments can help, they do little to
provide a sustainable income or empower women, so that all-important ripple
effect within a community is not catalysed.
Fortunately, even in the remotest areas with very few investment
opportunities, there are alternative systems that can be more effective. The
likes of Avon, Jita and Living Goods, for example, provide women with fast
moving, novel products to sell within their communities. Not only is this
essential for enabling women to achieve a sustainable income, this business
model also provides female entrepreneurs with the training and logistical
support needed to make their businesses viable.

The battle for equality

According to the Microcredit Summit Campaign, between 1990 and 2008,
microfinance lifted 10 million people out of poverty in Bangladesh. Globally,
the number of people who have borrowed from microfinance institutions
reached 211 million by December 2013 – more than half of whom were
women (see Fig 1).
Evidently, microfinance can transform lives and communities by acting as a
springboard to entrepreneurship, providing education for children and
delivering insurance if a natural disaster strikes – yet microfinance alone is
not enough. With it must come financial training, realistic opportunities and
the support people need in order to invest capital successfully. Clearly, as
argued by Scott and others, financial products alone are just part of a much
larger parcel needed for poverty alleviation.
And yet, with the right backing, microfinance can provide the impetus
women in poverty need to challenge the status quo and make something more
of their lives than previous norms and customs have dictated. In doing so,

14
they create a ripple effect that lifts others out of poverty. This cumulative
effect swells further as the children of these women have greater access to
education, healthcare and employment opportunities, meaning they can
create even better lives for themselves and their own families.

15