Abstract
PurposeIslamic microfinance is a substantial tool for poverty alleviation and economic empowerment. The paper aims at accessing the potential of Islamic microfinance for the purpose of achieving the economic empowerment in Tunisia.Design/methodology/approachA structured questionnaire survey method is used. The method is intended for some of the beneficiaries of Zitouna Tamkeen (ZT), the only Islamic microfinance institution in Tunisia. Responses are analyzed using the statistical package for the social sciences program.FindingsThe authors infer that though the Islamic and conventional microfinance have similar objectives, the methods are different. What is more, the economic empowerment requires not only financial inclusion and entrepreneurship, but also skill development. The results of the survey reveal that ZT has contributed to certain economic empowerment of most of ZT's beneficiaries. In addition, the authors bring to the fore that providing supportive infrastructure and investment is a prominent component of the economic empowerment process.Research limitations/implicationsIn the paper, the sample is limited.Practical implicationsThe authors have highlighted that some structural barriers to entrepreneurship – such as legal, operational and marketing challenges – need to be addressed in a practical way.Originality/valueThis paper establishes the relationship between the Islamic microfinance and economic empowerment. The current paper is the first investigation in this field in Tunisia.
Highlights
The economic empowerment and financial inclusion are among the challenges faced by policymakers in developing countries, those with high rates of poverty and unemployment (Demirguc-Kunt et al, 2017).The Organization for Economic Co-operation and Development (OECD) defines economic empowerment as “ the capacity of women and men to participate in, contribute to and benefitJEL Classification — G21, I38, Z12 © Takwa Zitouni and Khoutem Ben Jedidia
The purpose of this study is to investigate the contribution of Islamic microfinance to the economic empowerment approach
We use a structured questionnaire survey method with a view to test whether the Islamic microfinance is associated with the economic empowerment with respect to income, productivity and living conditions for a sample of 50 Zitouna Tamkeen (ZT) beneficiaries interviewed during the period of April–May 2020
Summary
The economic empowerment and financial inclusion are among the challenges faced by policymakers in developing countries, those with high rates of poverty and unemployment (Demirguc-Kunt et al, 2017). The idea of empowerment is vital in the foundation of the Islamic microfinance. In 2019, the number of beneficiaries of economic empowerment projects for microfinance from ZT reached about 140 beneficiaries. The purpose of this study is to investigate the contribution of Islamic microfinance to the economic empowerment approach. We discuss how Islamic microfinance can support economic empowerment. We use a structured questionnaire survey method with a view to test whether the Islamic microfinance is associated with the economic empowerment with respect to income, productivity and living conditions for a sample of 50 ZT beneficiaries interviewed during the period of April–May 2020. To the best of our knowledge, no study has examined the link between the Islamic microfinance and economic empowerment in Tunisia.
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