Empowering Woman in Islamic Microfinance: Lesson from Grameen Bank in Bangladesh, BMT and MBK Venture Capital in Indonesia

Abstract

Recently, microfinance have become an important component to reduce poverty. By involving the poor in the economic activities, most of microfinance institutions (MFIs) have succeeded in running their programs and have been flourished to improve the quality of poor people life. This study indicated that women entrepreneurs have contributed positively either to household income or economic development. However, their contributions have not optimalized yet in the microfinance program. The study attempts to describe and review the microfinance program that might encourage the development of empowering women. The objective is to analyze the successful of microfinance programs that have been applicated by some famous MFIs namely Grameen Bank in Bangladesh, MBK Venture Capital and BMT (Baitul Maal wa Tamwil) in Indonesia. It is found that BMT’s marketing strategy and MBK’s financing services are the suitable criterias to enhance the number of women entrepreneurs and optimalize the profitability of MFI. Meanwhile, Grameen Bank’s management model is useful for minimizing the risk of microfinance program.