Women's Empowerment through Islamic Microfinancing Initiatives for Microenterprises

Abstract

Women's empowerment has increasingly been recognized as a critical component of sustainable economic development. Islamic microfinancing initiatives have emerged as a promising mechanism to support women's financial activities, particularly in Muslim-majority communities. Islamic microfinance is differentiated from conventional microfinance by emphasizing risk-sharing and commitment to social justice. This study explores the pivotal role of Islamic microfinancing initiatives in empowering women. The study adopts a conceptual framework that integrates various dimensions of empowerment such as economic, social, and psychological. By analyzing key factors such as loan amount, loan tenure, financial literacy support, support networks, age and sector of microenterprise, entrepreneurial experience, education level, and household income, this study aims to assess the impact of these initiatives on women's empowerment. Moreover, it is anticipated to offer valuable perspectives on the efficacy of Islamic microfinancing as a means to empower women. Furthermore, the findings are expected to guide policymakers and practitioners in designing and implementing more effective microfinancing programs that address the specific needs of women, thereby contributing to broader socio-economic progress.