CHAPTER FIVE: CONCLUSION AND RECOMMANDATIONS
5.1. INTRODUCTION
This chapter represents a brief summary of findings of the
study by expressing the general view of what the researcher discovered during
the research. It is also in this chapter that the researcher's recommendations,
suggestions and conclusion are mentioned.
5.2. CONCLUSION
The aim of this research is to explore the contribution of
microfinance on women empowerment and the circumstances under which
microfinance can help the poor women out of their poverty situation.
Microfinance provides employment to the poor women who have no other means of
income. Women are highly represented in self-employment and operating small
income generating activities. Therefore, microfinance has the potential to have
a powerful impact on women's empowerment.
Women need and profit from credit and other financial
services. Strengthening women's financial base and economic contribution to
their families and communities plays a role on empowering them. To a large
level, access to capital or credit may be the only input needed to start women
on the road to economic empowerment.
However, women have indicated that often they also value the
non-economic benefits of microfinance services. Some of the most valued
benefits include expanded business and social networks, improved self-esteem,
increased household decision making power, and increased respect and prestige
from both male and female relatives and community members.
Through VFC Ltd has proved to be a powerful instrument toward
women empowerment, enabling them to build assets, increase incomes, and reduce
the vulnerability to economic stress. All women who receive a loan, gain access
to additional resources and have succeeded in controlling their loans and using
them to generate independent incomes.
Targeting women continues to be important for Vision Finance
Company Ltd in design of its products and services, mainly because women by
default have less access to credit and because they face constraints unique to
their gender. Product design and program planning should take women's needs and
assets into account.
All in all, most interviewees seem satisfied with the
microfinance services as offered. Most clients, in general, have a better life
than before. By implementing a limited number of changes to the microcredit
programs of MFI. As is working on a country wide scale, an extra increase in
women's empowerment could benefit women in many different countries. Vision
Finance Company Ltd in partnership with main activities, can be a very useful
instrument in contributing to women's empowerment, and offers women a free
choice with regard to the way they want to use their talents. If some extra
efforts are made, the contribution could be even larger. Microfinance has not
been able to reach the poorest at the bottom of the poverty line and therefore
the claims that it will reduce poverty for the majority poor remains a mere
myth.
However, it's worth noting that, through VFC Ltd has reached
a number of poor people who previously had been excluded from the formal banks.
The program has been successful in reaching the poor especially women who have
not been served by the traditional financial institutions and findings indicate
that it has reduced poverty among the borrowers.
The MFI also in addition group-based lending program has
recently introduced individual lending for long term borrowers with excellent
repayment records. This will enable microfinance borrowers to easily graduate
to formal banking system in future. However, the study findings indicate that
microfinance was likely to have greater positive impacts in rural than other
financial institutions and this suggests differences in opportunities, women
poverty levels and microfinance products appropriateness.
This study sought to analyze the impact of microfinance
services in empowering the rural women. The outcomes of multiple regression
revealed that four factors i.e. socio-economic status up gradation, autonomy
for life choices, women position in the family/society and positive approach
towards child development can significantly influence the lives of rural women.
Traditionally, rural women's role was to provide support to their husband and
family which show the suppression of women in rural household. The results of
this study states that microfinance has improved their economic condition and
enhanced their ability to contribute in their family's decision making. As
rural women started to earn and contribute to their family expenses, their
husband's behavior towards them has changed considerably. The study also
indicates that the livings standard of their family has improved.
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