Authors : Thelma Tembo; Davy Siwila

Volume/Issue : Volume 11 - 2026, Issue 2 - February

Google Scholar : https://tinyurl.com/nyu758eu

Scribd : https://tinyurl.com/5yx4bmhc

DOI : https://doi.org/10.38124/ijisrt/26feb1225

Note : A published paper may take 4-5 working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and ResearchGate.

Abstract : Access to financial resources remains a major barrier for women entrepreneurs in Zambia. Micro-credit schemes have been promoted as a critical tool for supporting women in expanding their businesses and achieving economic empowerment. Despite the growing availability of microfinance services in Lusaka District, there is limited empirical evidence on their effectiveness in enabling women-owned enterprises to grow sustainably and improve women’s socio-economic status. The objectives are to examine the effect of micro-credit on the business expansion of women entrepreneurs., to determine how micro-credit contributes to the economic empowerment of women and to analyze the limitations faced by women in accessing and utilizing micro-credit. The study will adopt a mixed-method research design. Quantitative data will be collected using structured questionnaires administered to women entrepreneurs who have accessed micro-credit facilities. Qualitative data will be obtained through semistructured interviews with selected micro-credit beneficiaries and representatives from microfinance institutions. Purposive and stratified random sampling techniques will be employed. Quantitative data will be analyzed using descriptive statistics and correlation analysis, while qualitative data will be subjected to thematic analysis to identify key patterns and insights. It is expected that micro-credit will positively influence business expansion and enhance the economic empowerment of women, increasing income levels, decision-making power, and entrepreneurial confidence. Nevertheless, challenges such as limited loan amounts, high interest rates, and administrative barriers may restrict the full benefits of micro-credit. The findings will provide practical recommendations for improving microfinance programs, informing policymakers, financial institutions, and development stakeholders in designing effective interventions that support women entrepreneurs and promote inclusive economic growth.

References :

1. Aporti, S. & Kufuor, M. (2013) ‘Microfinance and women's entrepreneurship: A study of the challenges and opportunities in Ghana,’ African Development Review, 25(3), pp. 352–364.
2. Armendáriz, B. & Morduch, J. (2010) The Economics of Microfinance. 2nd edn. Cambridge, MA: MIT Press.
3. Banerjee, A., Duflo, E., Glennerster, R. & Kinnan, C. (2015) ‘The miracle of microfinance? Evidence from a randomized evaluation,’ American Economic Journal: Applied Economics, 7(1), pp. 22–53.
4. Banerjee, A., Karlan, D. & Zinman, J. (2015a) ‘Six randomized evaluations of microcredit: introduction and further steps,’ American Economic Journal: Applied Economics, 7(1), pp. 1–21.
5. Banerjee, A., Karlan, D. & Zinman, J. (2015b) ‘What is the impact of microcredit? Evidence from randomized evaluations,’ American Economic Journal: Applied Economics.
6. Bank of Zambia (2022) MSME Finance Survey Report 2022. Lusaka: Bank of Zambia.
7. Basu, K. (2011) ‘Microfinance and economic development: A review of policy frameworks in India,’ Journal of Development Economics, 12(2), pp. 44–57.
8. Bateman, M. (2010) Why doesn't microfinance work? The destructive rise of local neoliberalism. London: Zed Books.
9. Bhandari, S. & Yadav, R. (2018) ‘Women entrepreneurship and microfinance in India: A critical analysis,’ Journal of Entrepreneurship and Innovation Management, 10(2), pp. 115–132.
10. Cai, J. (ed.) (2023) Microfinance issue (review of RCT evidence and impacts). VoxDev.
11. Cheston, S. & Kuhn, L. (2002) ‘Empowering women through microfinance,’ MicroBanking Bulletin, 6, pp. 1–6.
12. Chibanda, M., Zulu, M. & Ngoma, M. (2014) ‘The role of micro-credit in women’s empowerment in Zimbabwe,’ Development Policy Review, 32(3), pp. 355–374.
13. Chikweche, T. & Fletcher, R. (2011) ‘The role of microfinance in the economic empowerment of women in Zimbabwe,’ African Journal of Business Management, 5(18), pp. 7474–7482.
14. Chikwenya, M. (2016) ‘Challenges in microfinance lending in Zambia: A focus on interest rates and their impact on women entrepreneurs,’ International Journal of Finance and Economics, 23(4), pp. 66–79.
15. Chileshe, M. & Muneku, M. (2019) Microfinance and women empowerment in Zambia: Opportunities and limitations. Lusaka: Zambia Institute for Policy Analysis and Research.
16. Chirwa, E. W. (2012) ‘The impact of microfinance on poverty reduction: A case study of women entrepreneurs in Lusaka, Zambia,’ Journal of Development Studies, 14(2), pp. 45–58.
17. Chirwa, E. W. & Ngwira, N. (2014) ‘Microfinance and the empowerment of women entrepreneurs: Evidence from Lusaka, Zambia,’ International Journal of Economics and Finance, 6(4), pp. 102–115.
18. Christen, R. P., Rhyne, E. & Vogel, R. (2004) Microfinance consensus guidelines: A note to practitioners. MicroSave.
19. Copestake, J., Bhalotra, S. & Johnson, S. (2005) ‘Assessing the impact of microfinance: evidence from comparative studies,’ Journal of Development Studies, 41(4), pp. 1–26.
20. FindevGateway (2010) Over-indebtedness in Microfinance: Understanding its Drivers. Technical review.
21. Gakure, R. & Muathe, S. (2015) ‘The impact of micro-finance services on women entrepreneurs in Kenya,’ International Journal of Economics and Finance, 7(4), pp. 14–25.
22. García, S. & Zúñiga, A. (2017) ‘The role of micro-credit in empowering women entrepreneurs in Latin America: A case study of Colombia,’ International Journal of Economics and Finance, 9(6), pp. 54–65.
23. Hossain, M. (2016) ‘The impact of micro-credit on women’s empowerment in Bangladesh: A case study,’ Journal of Gender Studies, 10(1), pp. 3–15.
24. Hulme, D. & Mosley, P. (1996) Finance against poverty. Vol. 1. London: Routledge.
25. Isern, J. & Sinha, S. (2008) Microfinance in Latin America: Improving outreach and sustainability. Washington, DC: World Bank.
26. Kabeer, N. (1999) ‘Resources, agency, achievements: Reflections on the measurement of women’s empowerment,’ Development and Change, 30(3), pp. 435–464.
27. Kabeer, N. (2001) ‘Conflicts over credit: Re-evaluating the empowerment potential of loans to women in rural Bangladesh,’ World Development, 29(1), pp. 63–84.
28. Kabeer, N. (2005) ‘Is microfinance a “magic bullet” for women’s empowerment? Analysis of findings from South Asia,’ Economic and Political Weekly, 40(44/45), pp. 4709–4718.
29. Kabeer, N. (2005) Measuring Empowerment: Cross-Disciplinary Perspectives. Washington, DC: World Bank.
30. Kabeer, N. (2005) ‘Gender equality and women's empowerment: a critical analysis of the third millennium development goal 1,’ Gender & Development, 13(1), pp. 13–24.
31. Khandker, S. R. (2005) ‘Microfinance and poverty: Evidence using panel data from Bangladesh,’ World Bank Policy Research Working Paper 2945.
32. Kimenyi, M. S. & Ndung'u, N. S. (2014) ‘Microfinance and women's economic empowerment in Kenya,’ African Economic Development Review, 26(1), pp. 23–34.
33. Karlan, D. & Valdivia, M. (2011) ‘Teaching entrepreneurship: impact of business training on microfinance clients and institutions,’ Review of Economics and Statistics, 93(2), pp. 510–527.
34. Ledgerwood, J. (1999) Microfinance handbook: An institutional and financial perspective. Washington, DC: World Bank Publications.
35. Ledgerwood, J. (2013) The new microfinance handbook: A financial market system perspective. Washington, DC: World Bank Publications.
36. Littlefield, E., Morduch, J. & Hashemi, S. (2003) ‘Is microfinance an effective strategy to reach the Millennium Development Goals?’ CGAP Focus Note, 24(1), pp. 1–11.
37. Malhotra, A., Schuler, S. R. & Boender, C. (2002) Measuring women’s empowerment as a variable in international development. Washington, DC: World Bank.
38. Masiye, F., Kasonde-Ng'andu, C. & Kapenda, H. (2015) ‘The impact of microfinance on women's entrepreneurship: A case study of Lusaka District, Zambia,’ Zambia Social Science Review, 6(1), pp. 34–45.
39. Mayoux, L. (2001a) ‘Tackling the downside: Social capital, women’s empowerment and micro-finance in Cameroon,’ Geneva: International Labour Organization.
40. Mayoux, L. (2001b) ‘Microfinance and the empowerment of women: A review of the key issues,’ Development in Practice, 11(5), pp. 519–525.
41. Mayoux, L. (2001c) ‘Jobs, gender and small enterprise development: microfinance and women’s empowerment?’ UNIFEM Discussion paper.
42. Mkopi, D. & Kapaya, S. (2019) ‘The impact of microfinance on women empowerment in Tanzania: A case of Morogoro region,’ International Journal of Business and Management Review, 7(5), pp. 20–31.
43. Morduch, J. (1999) ‘The microfinance promise,’ Journal of Economic Literature, 37(4), pp. 1569–1614.
44. Morduch, J. (2000) ‘The microfinance schism,’ World Development, 28(4), pp. 617–629.
45. Mukendi, S. & Manda, S. (2022) ‘Micro-Financial Institutions and Processes of Women Empowerment in Zambia,’ World Development Perspectives, 28, 100466.
46. Mutale, C. (2017) Gender inequality and access to finance in Zambia. Lusaka: Gender in Development Division.
47. Mwale, L. & Simpasa, A. (2018) ‘Microfinance and women’s economic empowerment: A case study of Lusaka’s small-scale agricultural entrepreneurs,’ Journal of Development Studies, 9(2), pp. 50–67.
48. Mwansa, L. & Sinyangwe, P. (2017) ‘Microfinance and women entrepreneurship: Evidence from Lusaka, Zambia,’ Zambia Economic Journal, 22(2), pp. 76–89.
49. Mwansa, M. (2018) ‘Challenges facing female entrepreneurs in accessing micro-finance: A study of Lusaka-based microfinance institutions,’ Journal of Business and Management, 6(2), pp. 45–58.
50. Nabugoomu, M., Mugisha, F. & Tumusiime, E. (2016) ‘The impact of microfinance on women’s entrepreneurship in Uganda: A case study of the Northern Region,’ Journal of Economics and Sustainable Development, 7(5), pp. 75–82.
51. Narayan, D. (2005) Measuring Empowerment: Cross-Disciplinary Perspectives. Washington, DC: World Bank.
52. Ngoma, A. & Simatele, M. (2022) ‘Informality, finance, and female entrepreneurship in Lusaka: A policy perspective,’ African Journal of Development Studies, 12(1), pp. 112–127.
53. Odek, B., Simiyu, S. & Okumu, F. (2017) ‘Microfinance and women entrepreneurship in East Africa: The case of Kenya, Uganda, and Tanzania,’ African Economic Review, 9(2), pp. 33–46.
54. Otero, M. (1999) ‘Bringing development back into microfinance,’ Journal of Microfinance, 1(1), pp. 8–19.
55. Otero, M. (2005) ‘The impact of microfinance on women’s empowerment in Sub-Saharan Africa,’ Journal of Economic Development, 29(1), pp. 56–74.
56. Pitt, M. & Khandker, S. (1998) ‘The impact of group-based credit programs on poor households in Bangladesh: Does the gender of participants matter?’ Journal of Political Economy, 106(5), pp. 958–996.
57. Rutherford, S. (2000) The Poor and Their Money. New Delhi: Oxford University Press.
58. Schicks, J. (2010) ‘Microfinance over-indebtedness: Understanding its drivers and challenging the common myths,’ Microfinance Gateway/Findev Gateway.
59. Tembo, M. (2021) ‘Gender norms and women’s entrepreneurship in Lusaka,’ Lusaka Social Studies Review, 9(1), pp. 22–38.

60. Williams, A. et al. (2025) ‘A systematic review of microfinance interventions and women’s empowerment.’ PMC.