MICROFINANCE AND WOMEN EMPOWERMENT: CATALYZING FINANCIAL INDEPENDENCE AND ENTERPRISE GROWTH

Microfinance has emerged as a vital tool for promoting women’s financial inclusion and entrepreneurship, tracing its origins to the Rural Social Services (RSS) initiative in 1974, which introduced interest-free and collateral-free microcredit. During the late 1970s and early 1980s, non-governmental organizations (NGOs) and Grameen Bank expanded microfinance services, supported by government initiatives, integrating financial support with social development programs. These services provide women with access to small loans, fostering economic participation and contributing to national income and GDP growth. In 2023, microcredit disbursements totaled BDT 2857.57 billion, representing 5.67% of Bangladesh’s GDP. With women constituting approximately 90% of clients registered under the Microcredit Regulatory Authority (MRA), the microfinance disbursed to women alone accounts for nearly 5.09% of the GDP. This study examines the role of microfinance in advancing women’s financial independence and business growth, highlighting its socio-economic impact and significance for inclusive economic development