Empowerment Through Microcredit: Evaluating the Sustainability and Socioeconomic Impact of Microfinance on SMEs and Women’s Empowerment in Bangladesh

Md Alamgir Hossain, Nasrin Jahan, Shahana Afroz and Mohammad Arije Ulfy
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Md Alamgir Hossain: IIUM Institute of Islamic Banking and Finance, International Islamic University Malaysia, Kuala Lumpur, Malaysia
Nasrin Jahan: Independent Researcher, Dhaka, Bangladesh
Shahana Afroz: Kulliyyah of Economics & Management Sciences, International Islamic University Malaysia, Kuala Lumpur, Malaysia
Mohammad Arije Ulfy: N/A

International Journal of Research and Innovation in Social Science, 2025, vol. 9, issue 15, 508-519

Abstract: The purpose of this study is to investigate the impact that microcredit programs play in promoting financial inclusion and economic empowerment in Bangladesh. The study focusses specifically on underserved populations, such as women and households with low incomes. The research, which is based on a qualitative framework, explores the socio-economic implications of microcredit efforts on small and medium companies (SMEs) and the reduction of poverty. Additionally, the research investigates the sustainability of microcredit initiatives. The findings, which were derived from an analysis of interviews with various stakeholders, indicate that although microcredit makes a substantial contribution to the growth of businesses, the empowerment of women, and the alleviation of poverty, its potential is hindered by obstacles such as high operational expenses, barriers to accessibility, and low financial literacy. The findings of this study highlight the importance of governments and microfinance institutions adopting policies that improve the availability and affordability of loans, shorten the application process, and encourage financial education. For the purpose of maximising the efficiency of microcredit programs and ensuring that they cater to the varied requirements of underserved groups, these steps are absolutely necessary. As a result, they will make it possible for Bangladesh to achieve sustained economic development.

Date: 2025
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