Microfinance institute’s non-financial services and women-empowerment: The role of vulnerability

• Main Authors: Ul-Hameed, Waseem, Mohammad, Hisham, Kadir Shahar, Hanita
• Format: Article
• Language: English
• Published: 2018
• Subjects: HG Finance
• Online Access: http://repo.uum.edu.my/26364/1/MSL%208%202018%201103%201116.pdf; http://repo.uum.edu.my/26364/; http://doi.org/10.5267/j.msl.2018.7.001

Women-Empowerment is one of the most crucial challenge in Pakistan. Pakistani women are con-tributing only 25-30% in nation’s economy which is quite low as compared with other developed as well as developing countries such as United Kingdom (UK), United States of America (USA), Ma-laysia, China, Indonesia and India. To address this problem, the primary objective of this study was to examine the role of microfinance institutions in women-empowerment. Moreover, moderating role of vulnerability was also examined. Quantitative research approach and cross-sectional research design were adopted. Data were collected from the female clients of microfinance institutes in Southern Punjab, Pakistan. Survey was conducted to collect the data and questionnaires were dis-tributed by using area cluster sampling. SmartPLS (SEM) was used to analyze the data. It was found that non-financial services of microfinance institutes such as training/skill development pro-grams and social capital development had positive contributions towards women-empowerment. Moreover, vulnerability moderated the relationship between social capital and women empowerment. Thus, this study contributed in the body of literature by investigating vulnerability as moderating variable. Hence, this study is beneficial for microfinance institutes to enhance women-empowerment through training/skill development and social capital development.