You may have already read the article on the benefits of employing women in microfinance; this article limits itself to some issues related with the microfinance workforce.
Women Can Be a Risky Human Resource Investment for Microfinance Institutions
Most countries where microfinance is ubiquitous, nurture societies who harbor traditional views about gender roles – men deal with financial matters while women deal with household matters. This usually results in female microfinance workers quitting their jobs once they get married even if they previously pledged that they would continue after marriage. (This problem isn’t unique to the microfinance sector in developing countries.)
The low retention ratio of women in microfinance institutions works against the benefits of ‘gender diversity’, and this issue can be difficult to solve, despite the presence of preventative human resource policies. Kiva story for details.
Diminishing Role of Women in Leadership Positions of Microfinance Institutions
The glass ceiling is a concept prevalent all over the world, and it seems it applies to the microfinance sector as well. As indicated in a blog post on Microfinance Focus, “women’s leadership at the institutional level has declined” in microfinance institutions. This is surprising since many microfinance institutions deal largely with women, and some institutions felt this gender disparity negatively impacted the assessment of customer needs.
The problem was partly attributed to the “lack of adequate training and networks for women for positions in the financial services sector”.
The main purpose of developmental activities in villages is to raise the socio-economic status of poor ladies of rural areas who are not in a position to compete with other ladies of urban areas. Microfinance with certain trainings to involve them in production activities through certain NGO so that the products manufactured by them could be sold in the market and the profit earned be given to the rural poor ladies.This can happen if and only if the Self Help Groups duly registered by Government authorities are involved in the process.
KVIC, DRDA, National level NGOs can associate in this process.
It is really sad to note that MFIs are not inviting NGOs in this process.Close coordination is very necessary.
It is needless to mention that female society can bring good results in the field of manufacturing rather then men.We can involve men in marketing which is difficult for female.
Dr.Mrs Sushma Joiya
National President
Integrated Congress of Women Entrepreneurs
Dear Dr. Shushma,
I fully endorse the idea of involving women in the cottage industry. After all, most SMEs originated in homes. If you wish to promote your work at the Integrated Congress of Women Entrepreneurs, send over an article and I’ll be glad to publish it at Microfinance Hub.
Kind regards,
Fehmeen