Enterprise Development - Micro-credit and Equality Between Women and Men

This paper addresses the relationship between women's participation in micro-credit (or micro-enterprise) scheme and empowerment. Micro-credit schemes targeting women increase their income and:

• Help in improving women's role in the household;
• Increase their confidence;
• Change the perception of women's role in the society.

The paper further explains that receiving credit does not automatically lead to empowerment:

• Male family members may actually control the loans granted to women;
• Micro credit cannot address the aspects of gender inequality.

The paper suggests some ways for equitable results, for reducing obstacles to women's participation, and thus benefiting them from micro-credit and micro-enterprise programs. Addressing women's participation, it lists the following problems that must be considered:

• Low literary and vocational skills;
• No provision for collateral for loan because of inequality within the household;
• Insufficient time availability and confidence;
• Varied participation and benefit because of different economic position, age and education levels.

Demonstrating the obstacles faced by poor women, the paper mentions some measures to ensure equitable results:

• Analyze realistically the contribution of micro credit schemes to gender equality;
• Consider outside influences affecting women's ability to benefit;
• Use gender sensitive participation mechanism;
• Recognize women specific barriers and ensure that provision of credit is supported by additional business skills;
• Ensure that general training options are designed and scheduled so that women as well as men can attend;
• Develop complementary social services;
• Encourage organizations with broader agenda of gender equality to meet specific women needs.