Microcredit in Rural Women Empowerment in South Sulawesi

Microcredit in Rural Women Empowerment in South Sulawesi By Hurriah Ali Hasan & Rozeyta Omar INSPIRING CREATIVE AND INNOVATIVE MINDS

BACKGROUND • Poverty is always experienced by rural people, because they do not have a stable income • More women experience poverty • Women often have to be the head of the family or become single parents, and have to do: make a living and care of their family. (Ahmed & Rahid, 2001; World Bank, 2006; Dulal, 2007; Kabeer, 1998; Sharma & Zeller, 2000) INSPIRING CREATIVE AND INNOVATIVE MINDS

BACKGROUND • It need to encourage the rural development • It need to increase the productive activities of rural women • It need to empower rural women • It need to open up access to finance for rural women • Access to financial resources is essential for rural development (Ashari, 2006; Brush, et al, 2006; Cerven dan Ghazanfar, 1999; Crepon et al, 2002). INSPIRING CREATIVE AND INNOVATIVE MINDS

BACKGROUND The importance of micro-credit programs for women: 1. In terms of access to credit, women have more difficulties than men; 2. Most women feel the impact of lack of money in the family and society; 3. Women have a low credit risk in lending. (Bernasek & Stanfield, 1997; Hunt & Kasyanathan, 2001; Mallick, 2002; Schuler & Hashemi, 1994; Todd, 2000; Vonderlack & Schreiner, 2010) INSPIRING CREATIVE AND INNOVATIVE MINDS

BACKGROUND Women's involvement in micro business activities are: - One process of rural development - One process of poverty reduction - One process of improving the quality of social capital - One process of encourage the small businesses and local markets The process is supported by the Micro Credit INSPIRING CREATIVE AND INNOVATIVE MINDS

METHODE AND ANALISYS • This study conducted out in District of Gowa, South Sulawesi, Indonesia • In-depth interviews conducted to 10 women who have small business and use the micro-credit as a source of capital. • Microcredit providers are cooperative INSPIRING CREATIVE AND INNOVATIVE MINDS

RESULT • The strength of microcredit is its ability to assist poor women in order to have their own money as they needs • Having their own money, has encouraged poor women to become productively and more confident in theirself INSPIRING CREATIVE AND INNOVATIVE MINDS

RESULT • Women empowerment is growing through micro business activities • Business activities has made women become selfreliant, more able to deal with and solve problems • Challenge and competition helps woman improve self-esteem, capacity, and make their own decisions. • Business activities provide an opportunity for rural women to expand the social interaction • The business activities of providing access to women in local development. INSPIRING CREATIVE AND INNOVATIVE MINDS

RESULT Having access to credit helps women to selectively choose micro-credit providers as needed Provider Condition Loan Repayment Interest Rate Savety Bank Fix Fix Low Save Cooperative Flexible Flexsible Medium Save Money Lenders Flexible Fix High Not save INSPIRING CREATIVE AND INNOVATIVE MINDS

CONCLUSION • Access to financial resources encourage the involvement of women in local development • Micro credit support can help women to do productive and economic activities • Microenterprise activities encourage the individual and social ability to have economic empowerment, improvement of living standards, self-confidence, social interaction and participation in community INSPIRING CREATIVE AND INNOVATIVE MINDS

INSPIRING CREATIVE AND INNOVATIVE MINDS

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