Determinants of Microfinance Factors Affecting Women’s Empowerment: Evidence from Egypt

Abstract

There have been many proposals made and implemented worldwide by both the public and private sectors to alleviate the hardships of the poor women, and in the long term enhance their empowerment. Subsequently, this would allow women to play a significant social and economic role in modern societies. The current research has been motivated by the need to close the knowledge gap by assessing the determinants of microfinance, as well as the factors affecting women‘s empowerment in Egypt, in terms of increased savings and real income and choice, as well as participation in decision making, social relations, consumption and household welfare. This study applied quantitative tools and examined a random sample of 423 women participants with a microfinance agency in Egypt. Particularly, a survey was conducted on the key impact of institutional factors, cognitive effects and cultural factors on women's empowerment. Data were inspected and then analysed using structural equation modelling (SEM), to determine the statistical significance and differences. The findings showed that women using microfinance were able to raise their own standard of living as well as that of their families, thus indicating the positive impact of microfinance. This finding could be useful for policy makers and microfinance institutions and other stakeholders in Egypt