Effectiveness of Microcredit Fund Scheme in Economic Empowerment of Rural Women in Tehran Province

Abstract

Microcredit scheme is an important poverty alleviation method that facilitates the development of rural communities by creating and developing income-generating activities, especially for low-income women. The present study was aimed to examine the effectiveness of the microcredit fund scheme on the economic empowerment of rural women in Tehran Province, Iran. It was carried out by a survey methodology. The statistical population was composed of 461 women who were members of 15 rural microcredit funds in Tehran Province in 2014. The sample size was determined by Krejcie and Morgan table and the population was sampled by the proportionate simple random method. Finally, 210 questionnaires were collected. The results revealed significant differences in economic capability between member women with different educational levels. Also, rural women's economic capability differed significantly in income, saving power, saving management, initiation of income-generating lasting occupations, financial independence, purchase power, possession of vocational skills to start and continue a production activity, and economic skills before and after membership in rural microcredit funds.