The Impact of Microfinance on Women’s Entrepreneurship

Abstract

Entrepreneurship is the dynamic process of creating incremental wealth. Women’s entrepreneurship are key instrument in the society and their role is very important because, they act dual role both in the family as well as society. Microfinance has an important role empowering rural women in developing countries such as Sri Lanka by accessing credit facilities for their income generating activities to enhance rural women’s entrepreneurship. It has also been considered an effective vehicles for women’s empowerment. The main objective of the study is to investigate the impact of micro credit facilities on empowerment of women entrepreneurs’ in rural area. Also to identify some of the microfinance facilities and special packages available to small scale enterprises run by women in the rural area, families of those women. In this study 37 women’s were selected randomly from the Teldeniya area for the sample. In this study both primary and secondary data were used. Primary data was collected by giving questionnaire to the selected sample unit and secondary data was collected from the related reports and empirical studies. Collect data was analyze using the SPSS software version 20 and MS Excel. Though there are many analytical methods, this study use descriptive statistics, Analysis of Variance (ANOVA), and regression analysis to analyze the data. The sample women doing these business more than five years. The study found that majority of microfinance supported women entrepreneurs in rural areas have not good education. And they doing that business for five or more years. Among micro finance products Credit card and payment services are not popular majority use credit, savings, and insurance. The study found that the amount of loan, level of education and rate of interest are the important factors which determine the women entrepreneurship development.