Last week I wrote about the positive effects of the participation of women in S&P 500 companies. Not much changes if we look at a different set of companies, i.e., those who give microloans.

According to a report published by the Reserve Bank of India in 2021, women borrowers account for more than 55% of the total number of microfinance borrowers in India. This goes on to show that at the bottom of the financial pyramid, women have been showcasing more enterprising abilities.

A study conducted by the International Journal of Scientific and Research Publications in 2020 found that microfinance has significantly contributed to the entrepreneurship development of women in India. The study also revealed that women who received microloans were able to improve their businesses, generate more income and create jobs.

Needless to say, these have had associated benefits as well. Women who have started businesses with the help of microfinance have also helped in promoting financial inclusion among women in India. According to a report published by the National Sample Survey Organisation (NSSO) in 2021, the percentage of women who have a bank account has increased from 28.7% in 2014 to 77.7% in 2018.

This increase in the ownership of bank accounts is attributed to financial independence and the wholesome enhancement of empowerment in their families and society. A study published by the International Journal of Community Medicine and Public Health in 2020 found that women who received microfinance loans reported a higher degree of decision-making power in their households. They were able to make important decisions related to their children's education, family health, and family finances. The study also revealed that women who received microfinance loans were more likely to participate in community activities and take on leadership roles.

While I have, at many times, been writing about the fact that the biggest positive effect of empowerment has been in providing education to the next generation, we also need to understand the effect it has had on healthcare. Women entrepreneurs of microenterprises have better access to healthcare services that were previously unaffordable for them. A study published in the Journal of Health Management in 2020 says that women who received microfinance loans were more likely to seek medical care when needed, both for themselves and their families.

However, there is still a need for efforts to address the challenges faced by these enterprising women which restrict them from growing from micro to small enterprises. That is the reason we are bringing in changes in microfinance making it more inclusive and sustainable in the long run.