Empowering female entrepreneurs through access to digital
\nmicrofinance services

Purpose – The concept of women’s empowerment is widely regarded as a crucial factor in facilitating the
\nintegration and involvement of women in the development process. The cornerstone of women’s empowerment
\nis widely acknowledged to be social and political engagement coupled with economic independence. This
\nresearch aims to contribute to understanding the effects of access to digital financial services by microfinance
\ninstitutions (MFIs) in Indonesia on women empowerment, specifically focusing on women at the bottom of the
\neconomic pyramid. This empowerment is assessed through social, political and economic dimensions.
\nDesign/methodology/approach – This study utilizes logistic regression (LR) to examine the effect of access to
\nmicrofinance digital financial services on the social, political and economic determinants of women’s
\nempowerment. The analysis is based on the threshold theory of decision-making. The present research includes
\na sample of 1,644 female entrepreneurs, namely ultra-micro small and medium-sized enterprises (SMEs),
\nactively participating in microfinance activities in Daerah Istimewa Yogyakarta, Nusa Tenggara Barat and
\nSulawesi Selatan.
\nFindings – The findings indicate a statistically significant effect between access to credit and the two variables
\nunder investigation, namely social and economic empowerment. However, no significant effect was seen
\nbetween credit access and women’s empowerment. Following this, a positive effect has been identified between
\ncredit access and several aspects of women’s empowerment.
\nResearch limitations/implications – The research establishes a framework and substantiates that women’s
\nempowerment relies on economic autonomy, social engagement and political involvement. MFIs have been
\nidentified as significant contributors to this process. This will assist practitioners in formulating policy and
\nimplementing interventions to promote women’s empowerment, particularly in the context of digital
\nmicrofinance. The results of this study will provide valuable insights for guiding future research endeavors in
\nthis field.
\nOriginality/value – The work exhibits originality and serves as a valuable resource for those who recognize and
\nappreciate its significance. This report is the first study to examine the correlation between female
\nentrepreneurs’ access to digital MFIs and women’s empowerment dimensions.