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Name
:
Lakshapathi Vidanalage Tharusha DeMel
Student No.
:
W22068941
Degree Programme
:
BSc (Hons) Business with International
Management
Title
:
The Impact of Microfinance on Women
Empowerment based in Moratuwa, Sri
Lanka.
Date
:
28 October 2022
Campus
:
Northumbria University Newcastle
Word Count
:
1500 Words
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Section 01 – Research Details
1.1Research Aim
The aim of study is to explore the impact of micro finance on women
Empowerment based in Moratuwa Sri Lanka.
1.2Research Objectives
1. To review the present literature, address the literature gap &lacuna, contribute
to the literature of microfinance and its impact of women empowerment as tool
of urban poverty alleviation.
2. To assess the relationship between microfinance & women empowerment and
their sub variables.
3. To recognize the bad practices of microfinance and the challenges face by
women in accessing microfinance
4. To find out significant differences, pros and cons among the variables and
present suggestion for the betterment of women empowerment through
microfinance.
1.3 Research Method (Population, Sampling & Data Collection)
This research will depend on qualitative data to be gathered through interviews
to accomplish the objectives of the research. Non Probability Purposive
sampling technique will be used for the study as purposive sampling techniques
enable the researcher to find most relevant responses which best fit into the
context of study, based on the aim & objectives
The population of this micro finance industry-based study will be framed the 10
women who receives micro finance services for at least two years in 24 areas
of Moratuwa Sri Lanka as they are well experienced and know more about pros
& cons of micro finance.
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Primary data to be collected from structured interviews as unique questions to
be included in the interviews. Based on this selection and questions on
structured interviews will enable the access to lot of information on different set
of ideas, opinions and views.
1.4 Industry Details
Microfinance is defined as “provision of financial services to low income people”
by the Consultative Group to Assist the Poor (CGAP).Therefore, it is expected
that through microfinance the living conditions of low income persons would
improve, while they take on an active role in the economic development of the
country.
There is a variety of institutions providing microfinance in Sri Lanka, such as
licensed banks, licensed finance companies, co-operative rural banks, thrift and
credit co-operatives societies, divinaguma banks and other community based
organizations, microfinance companies, non-governmental organizations that
engage
in
micro
finance
business.(Retrieved
from
https://www.cbsl.gov.lk/en/financial-system/financial-systemstability/microfinance-sector)
1.5 Key Words of the research
Micro Finance, Women Empowerment, Urban poverty & vulnerability alleviation
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Section 02 – Specific area of research
This study explores the impact of microfinance on women empowerment based
in Moratuwa in Sri Lanka to present suggestions to alleviate urban poverty in a
situation of economic crisis.
Although, the impact of micro finance (MF) on the poor has been extensively
examined over the past decade resulting in a large pool of source materials and
literature, the impacts of MF on urban poverty reduction, especially on the
empower of women, have not been discussed at length. Further it is very
difficult to find a past literature on the impact MF on women empowerment in a
financial crisis.
The study investigates the impact of the microfinance industry in exploring
urban poverty based in Moratuwa Sri Lanka, taking into account a variety of
factors affecting women empowerment to alleviate urban poverty.
Moratuwa was selected for the study as Moratuwa is large suburb of Colombo
on the south western coast of Sri Lanka. According to the 2012 census,
population is 168,280. (Retrieved from www.statistics.gov.lk,census).
Moratuwa Consists of 24 main areas & Industries in Moratuwa includes
Manufacture of furniture,Wood handicrafts,fishing and trading. Moreover
women engagements are high in tailoring, beauty parlours, grinding mills,
boutiques etc.
For this reason, many poverty alleviation programmes including several
microfinance programmes have been implemented in this area of Moratuwa, a
fact that reflects the importance of microfinance as a strategy in empowering
women and poverty alleviation in urban areas such as Moratuwa.
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This research will depend on qualitative data to be gathered through interviews
to accomplish the objectives of the research. Non Probability Purposive
sampling technique will be used for the study as purposive sampling techniques
enable the researcher to find most relevant responses which best fit into the
context of study, based on the aim & objectives
The population of this micro finance industry based study will be framed the 10
women who receives micro finance services for at least two years in 24 areas
of Moratuwa Sri Lanka as they are well experienced and know more about pros
& cons of micro finance.
Primary data to be collected from structured interviews as unique questions to
be included in the interviews. Based on this selection and questions on
structured interviews will enable the access to lot of information on different set
of ideas, opinions and views.
The assurance made by divisional secretariat of Moratuwa and office bearers
of some women focused unions and associations in Moratuwa to coordinate
and provide required cooperation will enable the smooth interview process with
the women who engages in micro finance.
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Section 03 – Relevant Literature
Poverty has become one of world’s top threats to humanity. Accordingly,
microfinance has been recognized as a key relief strategy (Hassan, 2014;
p.79). The emergence Microfinance movement is therefore not a new
phenomenon but its prominence can be traced from the rise of the Grameen
Bank by a renowned Nobel laureate Dr. Muhammad Yunus who promoted it
through experimenting whether poor women in Jobra, Chittagong district in
Bangladesh would be able to repay money lent to them (Akisimire, et al., 2015).
(Hashemi et al., 1996; Montgomery et al., 1996; Morduch, 1998; Husain, 1998).
Sharma (2011) concludes that the access to credit through microfinance
generates income and survival options for women and disadvantaged
segments, giving more bargaining power within the household and contributes
to betterment of family. The Microcredit Summit held in Washington DC in 1997
identified four themes – reaching the poorest, the empowerment of women,
building self-sufficient financial institutions and ensuring a positive and
measurable impact on the lives of clients and their families.
Although, the impact of micro finance (MF) on the poor has been extensively
examined over the past decade resulting in a large pool of source materials and
literature, the impacts of MF on urban poverty reduction, especially on the
vulnerability of women, women’s economy in a financial crisis have not been
discussed at length.
Some research work suggests that access to microfinance has the potential to
reduce poverty significantly (Khandker, 1998), others argue that microfinance
has minimal impact on poverty reduction (Morduch, 1998; Roodman &
Morduch, 2009). Poor women are particularly empowered by microcredit, as it
gives them the ability to earn an income and thus improves their bargaining
positions rather than their spouses (Gunathilake & de Silva, 2010; Chang,
2010).
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Holcombe (1995), Remenyi (1997) Schuler et al.(1996) and Otero & Rhyne
(1998) also confirmed that microfinance brings about significant socioeconomic benefits including increasing the income generation ability and
reducing vulnerability of clients.
Colombage et al. (2008) have conducted a case study of selected districts in
Sri Lanka on effectiveness of microfinance in reducing rural poverty. The study
examined the outreach and impact of the microfinance industry in tackling rural
poverty in Sri Lanka, taking into account a multitude of factors affecting the
performance of microfinance clients and small enterprises.
However, lacuna on literature on alleviation of urban poverty by empowering of
women remains unfilled.
Gunathilake & de Silva (2010) addressed the question of whether ownership of
a microfinance loan increases women’s empowerment. Most of those analyses
have not considered the significance of urban poverty and vulnerability
alleviation in a financial crisis by focusing urban areas with special focus to
Moratuwa in Colombo district.
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Section 04 – Work Plan
4.1 Table 01 (Author Developed, 2022)
Activity
Start Date
End Date
Submission of Proposal
September 10, 2022
October 28, 2022
Approval for Proposal
November 10, 2022
November 28, 2022
Introduction
December 05, 2022
December 24, 2022
Literature Review
January 02, 2023
February 28, 2023
Getting appointments & March 01, 2023
March 15, 2023
Arranging interviews
Data collection
March 16, 2023
March 26, 2023
Analyzing & Completing of March 29, 2023
March 31,2023
Data
Validation & Correction
April 01, 2023
April 26,2023
Submission
May 2023
May 2023
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Section 05 – Referencing
Gunathilake, R. & de Silva (2010) Microfinance and women empowerment, the
impact of loan ownership on women’s empowerment in microfinance
households in Sri Lanka, Colombo: Centre for Women’s Research.
Hashemi, S. M., Schuler, S. R. & Riley, A. P. (1996) Rural credit programmes
and women’s empowerment in Bangladesh, World Development, 24, pp: 635653
Holcombe, S. (1995) Managing to empower: the Grameen Bank’s experience
of poverty alleviation, London: Zed Press.
Husain, A. M. (1998) Poverty alleviation and empowerment: the second impact
assessment study of BRAC’s rural development programme, Dhaka: BRAC
publications
Khandker, S. R. (1998) Fighting poverty with micro credit: experience in
Bangladesh, Washington DC: Oxford University Press, for the World Bank
Montgomery, R., Bhattacharya, D. & Hulme, D. (1996) Credit for the poor in
Bangladesh, in D. Hulme & P. Mosley eds. Finance against Poverty, London:
Routledge.
Schuler, S. R, Hashemi, S. M. and Riley. A. P. (1996) Rural credit programs
and women’s empowerment in Bangladesh, World Development., 24(4), pp:
635–53
Statistical Department in Sri Lanka. (2012). Census report. Retrieved from
www.statistics.gov.lk,census
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Section 06 – Ethical Consideration
First, Author will obtain the consents from the respondant participants &
will conduct the study by adhering to regular research ethical norms.
Secondly, only age above 18 voluntary respondents will involve and
participate in this study where no vulnerable adults will involve. Finally,
purpose of the research will be clearly communicated to participants by
author prior to interviews align with subject matter without asking any
embarrassing question from the participants.
In addition to that privacy and protection of the participant will be guaranteed
by the author by ensuring anonymity. In particular
Research will not involve ‘vulnerable adults.

Research respondents will be clearly informed of the purpose of the
research.

Research will not ask questions that could embarrass respondents.

Research will not ask questions that could have adverse consequences
for respondents at their work.

Research will comply with European General Data protection regulations
or local equivalents.

Research data will be kept secure and will be destroyed 6 months after
I have received the official grade for my dissertation.
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