EMPOWERED THROUGH CREDIT: UNVEILING THE IMPACT OF MICROCREDIT ON WOMEN'S ENTREPRENEURSHIP

Abstract

While the role of microcredit in poverty alleviation has been extensively explored, there remains a significant gap in understanding its effectiveness among women micro-entrepreneurs in rural East Malaysia, where a substantial portion of the population still lives below the national average household income. Through scoping and mapping reviews of literature, this conceptual paper explores the role of microcredit to women entrepreneurs on terms of economic empowerment and social well-being. The paper also argues for a more holistic approach to microcredit providers, emphasizing the importance of non-financial services for borrowers. This paper hopes to provide insights to the Malaysian government and microcredit institutions, especially Amanah Ikhtiar Malaysia (AIM) and Yayasan Usaha Maju (YUM), to design flexible and diversified microcredit schemes tailored to the specific needs of low-income women micro-entrepreneurs in Sabah, with a focus on enhancing their business management skills.