Impact of Micro-Credit on Economic Empowerment of Rural Women

Abstract

The study was undertaken to analyze the impact of micro-credit on rural women’s economic empowerment. The study was conducted in Bariyali, Teknogpara and Naga villages of Basan and Kayaltia union under Gazipur Sadar Upazila of Gazipur District. A total number of 90 respondents were selected as sample using stratified random sampling technique. Out of 90 respondents, 45 women were involved with Bangladesh Rural Advancement Committee (BRAC) micro-credit program. Other 45 women had no involvement with any other micro-credit programs and they belonged to control group. Both these two groups had same socio-demographic characteristics. Survey method was applied and interview schedule was used to collect relevant data from the respondents. For measuring economic empowerment of rural women, three economic indicators ie., personal income, savings behavior and assets ownership were considered and sample t- test was performed to evaluate the impact of micro-credit on economic empowerment. Results of this study indicated significant differences between BRAC and non BRAC women regarding all these economic indicators of empowerment. In all the cases, BRAC women were more economically empowered than those of non BRAC women. It was also found that BRAC women had more active participation in various income generating activities. The study also revealed that the BRAC women received more micro-credit and utilized this for conducting more income generating activities than control group. They earned more income, saved more money and at the same time owned more assets than non BRAC women. The study stressed the need of more loans to be expanded to low income women folk by different GO and NGOs which would ultimately enhance their economic solvency and empower them economically. This would obviously be helpful for the upliftment of the rural women socio-economically. Keywords: Rural women; micro-credit; impact; empowerment DOI: 10.3329/agric.v8i2.7576 The Agriculturists 8(2): 43-49 (2010)