MICROCREDIT AND WOMEN'S EMPOWERMENT: ASSESSING THE LONG-TERM EFFECTS OF SMALL BUSINESS LOANS IN RURAL ECONOMIES

Abstract

Microcredit programs have become an important tool in supporting women's empowerment in rural areas, especially in developing countries facing poverty and limited access to formal finance. However, the effectiveness of microcredit in empowering women in the long term is still a matter of debate. The study aims to evaluate the long-term impact of microcredit on women's empowerment in rural economies, with a focus on increasing financial independence, participation in household decisions, and broader social impacts. This study uses a mixed-method method with an explanatory sequential design, which starts from a quantitative survey of 150 microcredit recipients and continues with in-depth interviews with 15 selected respondents. The results of the study show that microcredit has a positive impact on women's income and financial independence, as well as increasing their participation in household decision-making. However, challenges such as limited business management and access to the market are still the main obstacles in the development of women-managed small businesses. The study suggests the need to integrate microcredit with skills training programs and access to markets to strengthen the impact of long-term empowerment. These findings can be the basis for policies for women's empowerment in rural areas through more sustainable microcredit programs.