Microfinance model for women entrepreneurs

In Bangladesh, Islamic microfinance has become an essential instrument for empowering female entrepreneurs, especially in the social and familial contexts that frequently influence their business ventures. Women who might otherwise be reluctant to interact with traditional financial systems will find this model more acceptable because it is in line with Islamic principles, which place an emphasis on social responsibility and ethical financing. Profit-sharing and interest-free loans are two of Islamic microfinance's distinctive features that address the needs of women by enabling them to access capital without having to worry about interest, which is frequently a barrier in traditional microfinance. Islamic microfinance provides a supportive framework that promotes female entrepreneurship in Bangladesh, where cultural norms may limit women's economic participation. Since they are frequently viewed as the primary caregivers, women's participation in business can benefit both community development and family welfare. Islamic microfinance institutions can assist women in overcoming the obstacles of entrepreneurship, including restricted access to resources and social expectations, by offering customised financial products. In addition to increasing women's economic independence, this financial assistance promotes their sense of agency and empowerment.

Furthermore, it is important that Islamic microfinance be accepted in the family setting. When women's business endeavours are presented within an Islamic financial framework, families that uphold Islamic principles may be more willing to encourage them. Increased family support can result from this acceptance, which is important for female entrepreneurs who frequently encounter opposition from male family members. The social environment in Bangladesh is also very important; when women in business succeed, they can challenge gender norms and encourage other women in their communities to follow in their footsteps.

Beyond empowering individuals, Islamic microfinance has the potential to support Bangladesh's larger socio-economic development objectives. Communities can gain from more economic activity, the creation of jobs, and higher living standards when they invest in women-led businesses. Additionally, when female entrepreneurs succeed, they can reinvest in their communities and families, fostering a positive cycle of empowerment and growth.

Md Nahid Gazi, Dhaka

nahid.gazi@northsouth.edu