While the microfinance industry strives to recover from the financial burden of the COVID-19 pandemic, many questions are being raised on the viability of microfinance as a tool for empowering women. I am writing this blog for those asking the question.

This blog will not contain any facts or news. Those can be found on the internet. Along with my thoughts and opinions, this blog will talk about the experiences of women who have based their lives on financial stability and educated financial outlook thanks to microfinance. The commitment to work hard for their dreams was the first step for each of them.

Since the first lockdown in March 2020, VFS has kept connected with its customers. The lockdowns have hurt the global economy severely, and our aspiring MSME entrepreneurs were not left unharmed. They went through everything, from decreased turnover to negative turnover and more. Yet, the one thing that keeps them afloat is their perseverance, the willpower to stand up again after being knocked down. To channelize the energy, we held several customer awareness sessions when the lockdown eased. VFS executives have been trained to think like entrepreneurs and on how to make informed decisions. This helped them educate, inform and motivate the women customers effectively. Our executives became their think tanks, advising and guiding the budding entrepreneurs in the right direction.

Sujata Ghosh has been one of our esteemed microfinance beneficiaries.

A mother of three, Sujata was a homemaker. Her social identity was that of a mother and a wife of a factory labourer. She aspired to be an entrepreneur, but as a Class 8 dropout, she was unsure how to get started. It was her determination to become one that took her to the nearest VFS branch.

Thus began the journey of Sujata Ghosh, business owner.

The spacious room at the back of her home has become her workshop. Sujata’s day is spent producing chhena or cottage cheese, curd and paneer—from boiling milk to curdling, from setting to straining. Her husband, now fully engaged in the business, fetches the milk and delivers the products. Their three daughters want to complete their education and then expand the operations.

Sales decreased during the lockdown, but Sujata weathered the storm. VFS’s financial education helped her plan and restructure her resources and operations. With the support of her husband and counsel from VFS executives, Sujata developed strategies to curb the damage. In the meantime, she also used the downtime to examine the strengths and shortcomings of her business.

Sujata reflects on how everything she has today appears to be a dream. Everyone in her neighbourhood, as well as her distant family, had taken her ambitions lightly. They never imagined that the timid and unassuming woman could become an ambitious entrepreneur. Now, they are proud to be acquainted with her.

Microfinance, like any other institution, has been facing challenges. There is little doubt that we are on the verge of a rebound, and we may see a significant improvement. Enterprising women like Sujata are responsible for our success. Many of our formerly unbanked customers are now successful business owners. Microfinance was a tool for them to become self-reliant and get empowered. They are role models for their children and other women who wish to escape the darkness of poverty and enter the world of financial security.