Women entrepreneurs throughout the world contribute to the economic growth and livelihoods of their families and societies. But women, especially unprivileged ones, face many difficulties in establishing an enterprise.
Microfinance — the provision of financial services to low-income individuals in a sustainable manner — emerged as a strategy for economic survival of these women.
National Bank of Abu Dhabi (NBAD) is one of those microfinance institutions (MFIs) in MENA Region – UAE Mainly – that targets female clients. It leads to women’s empowerment by positively contributing to women’s decision-making power and improving their overall socio-economic status.
Microfinance utilizes credit, savings, insurance and fund transfers and helps empower women from lowly households to make their contributions in economic growth.
Here are a few ways low-income Emirati women can make the best out of micro financing options available to them.
1. Women Make Better Use of Small Loans Than Men
Research has shown that when women receive small personal loans, they do not spend their money on snacks or comforts. Instead, they use their funds to make more money out of it, which is used for providing food for their starving children or to send them to school.
Banks should focus on the accurate utilization of funds. They should facilitate providing loans to women, to help improve their families’ diet and education. Thus, contributing to the cycle of poverty alleviation.
2. Discovery of Hidden Potential in Women
Every woman, from every walk of life, from different social status, has the potential to be a prosperous small-business entrepreneur. Most women just need a slight support and a bit of inspiration to become a prosperous business woman.
Loans to such women increases women’s confidence and motivation. They become part of new social networks, build friendships and share information and tips that prove to be the key to success of many business projects. Banks should provide financial services to all, despite socio-economic status and the current situation.
3. The Ripple Effect of Women Empowerment
When women get a loan, the added money available to them usually enhances the economic status of their families. They adopt healthier lifestyles, gain access to new information and work for the prosperity of their family.
New incomes generated from micro initiatives are often spent in children’s education, particularly benefiting girls. Households of microfinance customers appear to have better health practices and nutrition than other households.
Therefore, micro financing options to women helps other women to extend their horizon and benefit from social acknowledgment and empowerment.
Microfinance programs should be accessible to both (male and female entrepreneurs). Both females and males play a vital role in creating income and jobs. Their capacity for innovation rouses general economic growth.
A successful micro finance program for women should consider the fact that women act as a family nucleus. The progress and improvement of society is possible by designing such micro finance programs that can reflect women in a broader framework, offer them specifically adapted products to build their competitiveness and can contribute to their social welfare.
A micro finance credit facility principally focused on women can prove to be a game changer in eliminating poverty and evoking revolutionary change in society.
