Microfinance and Women’s Empowerment: A Study of Rural Bangladesh

Abstract

Microfinance has been widely promoted as a tool for empowering women, particularly in developing countries. This paper examines the role of microfinance in enhancing women’s economic and social empowerment in rural Bangladesh. Using qualitative and quantitative data from 500 women across five rural districts, we assessed the impact of microfinance on income generation, decision-making autonomy, and social mobility. The results indicate that access to microfinance services has positively influenced women’s financial independence and participation in household decisions. However, challenges such as high interest rates, lack of financial literacy, and social norms continue to limit the full potential of microfinance. The paper concludes by recommending policy interventions that focus on financial education, support for women-led businesses, and the reduction of interest rates to ensure sustainable empowerment.