Factors Determining the Women Empowerment through Microfinance: An Empirical Study in Sri Lanka

Content Provider	Semantic Scholar
Author	Rathiranee, Y. Semasinghe, D. M.
Copyright Year	2015
Abstract	This study attempts to identify the factors influencing on women empowerment of rural area in Sri Lanka through micro finance services. Data were collected from one hundred (100) rural women involving self-employment activities through a questionnaire using direct personal interviews. Judgment and Convenience Random sampling technique was used to select the sample size from three Divisional Secretariat divisions of Kandawalai, Poonakari and Karachchi in Kilinochchi District. The factor analysis was performed on fourteen (14) variables for screening and reducing the variables to identify the influencing factors on empowerment. Multiple regression analysis was used to identify the relationship between the three empowerment factors and the impact of micro finance on overall empowerment of rural women. The result of this study summarized the variables into three factors namely decision making, freedom to mobility and family support and which are positively associated with empowerment. In addition to this the value of adjusted R is 0.248 indicates that all the variables extracted can be explained 24.8% of the variation in the women empowerment through microfinance. Independent variables of these three factors have positive correlation with women empowerment as well as significant values at 5 percent level. Keywords—Influencing factors, Micro finance, rural women and women empowerment. I. BACKGROUND OF THE STUDY OMEN are key in the society and their role is very important in the world. They have a significant contribution not only in the family but also in the society. In developed and most of the developing countries both men and women work together in the same positions and they contribute politically, socially, economically without gender imbalance. However some countries would have influenced by social, cultural and religious rigid they are unable to give equal opportunity to the women in all sphere. Therefore, nowadays the women empowerment is the important context in the world. Women empowerment means giving lawful power or authority to perform. If women were empowered they would be able to participate in the planning and decision making and contribute to the development programmes individually. Women empowerment is defined as a process to enhance women’s capacity for self-determination to meet their practical needs and Rathiranee Yogendrarajah, Senior Lecturer, is with the Department of Financial Management, Faculty of Management Studies & Commerce, University of Jaffna, Sri Lanka. (Corresponding author; phone: +94 077 898 2649, (e-mail: rathi@jfn.ac.lk). Semasinghe, D.M., Senior Lecturer, is with the Department of Commerce, Faculty of Commerce and Financial Management, University of Kelaniya, Sri Lanka. (e-mail: semasinghe@kln.ac.lk) Acknowledge to the Higher Education Twentieth Century (HETC) Project for funding this registration. strategic needs by achieving equal rights, power and authority and resources like men in the society as well as economy [1]. Micro Finance has evolved as a key instrument to afford financial and non-financial facilities to the poor people in developing countries. It focuses on micro credit, savings and insurance and other financial and non-financial services to the low-income people of a country. More than thirteen (13) million micro entrepreneurs worldwide have benefited through microcredit, by using the loan facilities in order to improve their wealth and their families out of poverty. Micro finance is considered as an important tool to increase income of the poor women in developing countries. The tsunami in 2004 and 30 year civil war in Sri Lanka have left innumerable women as single or widows in North and East Provinces. More of the households in Sri Lanka are now headed exclusively by women. Therefore, women were forced to take on new responsibilities in caring for their families, but they are often marginalized by their extended families and the greater community for taking on responsibilities of control. They still face numerous challenges in accessing education and health services, as well as economic development. Microfinance is described as a powerful tool to improve economic development in a post-conflict context and to support postconflict rehabilitation assistance. Microfinance services become a popular intervention against poverty in developing countries, targeting the poorest women and it has been considered an effective tool for women empowerment [2]. In addition to this, it is argued that increasing household economy role also will lead to the women empowerment [3]. In addition to improved well-being, micro credit features to it the empowerment of women, who gain a larger role in household and community decisionmaking [4]. Reference [5] concluded that the role of International Non Government Organizations (INGOs) and Local Non Government Organizations (NGOs) has the moderate level contribution on the respondents’ perception even though they have played a considerable role in improving equality and personality development of Women Headed Households in Sri Lanka. Reference [6] revealed that microfinance is an important component of the lives of the poor who are keen on being entrepreneurs. Reference [7] summarized the twenty six (26) variables into six factors namely socio economic status, personality factor, financial liberation, familial relations, child development and inhibiting factor using factor analysis technique. Reference [8] indicated that the women empowerment indicators from the perspective of decision making power, attitude towards domestic violence, and Factors Determining the Women Empowerment through Microfinance: An Empirical Study in Sri Lanka Y. Rathiranee, D. M. Semasinghe W World Academy of Science, Engineering and Technology International Journal of Social, Behavioral, Educational, Economic, Business and Industrial Engineering Vol:9, No:5, 2015 1595 International Scholarly and Scientific Research & Innovation 9(5) 2015 scholar.waset.org/1999.10/10001391 In te rn at io na l S ci en ce I nd ex , E co no m ic s an d M an ag em en t E ng in ee ri ng V ol :9 , N o: 5, 2 01 5 w as et .o rg /P ub lic at io n/ 10 00 13 91 exposure to sources of knowledge which were extracted from factor analysis and these factors positively associated with current contraceptive use. Sri Lanka is also one of the developing countries where most of the women situated at rural areas have a low standard of living. This study focuses on the major factors influencing on women empowerment. II. RESEARCH PROBLEM Women have been considered for some of the kind and soft jobs because who have the positive and supportive attitudes than men. In some developing countries the sexual differentiation occurs and women are fighting to get the equal opportunity like men. Of the 1.3 billion people who live in absolute poverty around the globe, 70 percent are women. Women work two-thirds of the world’s working hours, and they earn only 10 percent of the world’s income, own less than 1 percent of the world’s income [9]. Women are disproportionately represented among the world’s poorest people and are paid lower wage rate in the unorganized informal sector of most developing countries [10]. While women handle a large part of the world’s work, they receive only a small part of the compensation for that work. Gender inequalities reduce the economic growth and national development in developing countries. In achieving increases in income and getting better status, they face major barriers. And they require support in training, marketing, literacy, social mobilization, financial and non-financial services etc. It is accepted from the researches that the microfinance is an important tool to enhance the entrepreneurship development in the developing countries as well as in Sri Lanka. In the post war context it has been realized from the past experiences in Sri Lanka. However there are some challenges and difficulties facing by women as entrepreneurs for their sustainable development. The microfinance is a key tool for empowering poor women in rural areas and 65% of the micro finance activities have been done by the government agencies [11]. It is difficult to identify what factors are empowering women in Sri Lanka and the researches on this regards are very low except the World Bank reports and other human rights reports of various organizations. However in Sri Lanka, the study found that impact of micro finance on women is considerable in constructing confidence, skill development and empowerment. But there is no positive impact on sustainable rural development [12]. In this situation the following research questions arising as a research problem.  “What are the factors influencing in empowering the rural poor women in Sri Lanka through micro finance activities”. III. RESEARCH OBJECTIVES The prime objective of this study is to identify the major factors influencing in empowerment of poor women at house hold level in selected rural areas in Sri Lanka. The following sub objectives also are specified in this study. i. To identify the relationship between micro finance and women empowerment. ii. To find out the impact of micro finance on women empowerment.
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