The Role of Microfinance Services on Women’s Empowerment in the Kotapola Division, Sri Lanka

Abstract

Purpose: Women have always been the focus of microfinance because they are associated with lower socio-economic status. The microfinance industry works to empower women in reducing poverty and can, in turn, have a transformative impact on their families and communities. This study focuses on identifying factors that empower women in the Kotapola division.

Methodology: The data were gathered from 100 women in the Kotapola area who obtained services from microfinance Institutions. Based on the literature review, 20 factors were used in the questionnaire to identify the most significant factors. Factor analysis was used to analyse the data.

Findings: Seven factors significantly enhanced women empowerment in the Kotapola division. They are Poverty Reduction, Income Level, Consumption Level, Self-Satisfaction, Entrepreneurship skill, Social status and Decision Making.

Originality: The study’s findings contribute to the microfinance knowledge domain.