Barriers, Access, and Policy Challenges in Women’s Microfinance Participation: Evidence from Gujarat, India

Abstract

Microfinance institutions (MFIs) have been widely promoted as tools for women’s economic empowerment in developing economies such as India. However, despite increased outreach, many women continue to face structural, institutional, and socio-cultural barriers in accessing and effectively utilizing microfinance services. This study examines the challenges faced by women beneficiaries in accessing and utilizing microfinance programs in Gujarat, India, and evaluates how these constraints influence economic empowerment outcomes. A mixed-method research design was adopted, using primary data collected from 200 women microfinance participants through a structured questionnaire. Quantitative analysis was conducted using SPSS 27, employing descriptive statistics, regression analysis, and paired sample t-tests. The findings reveal that although women actively engage with microfinance services, significant challenges related to financial literacy, procedural complexity, and institutional limitations persist. The results indicate that microfinance access alone is insufficient to ensure sustainable empowerment unless supported by gender-sensitive policies, capacity-building initiatives, and simplified delivery mechanisms. The study offers evidence-based policy recommendations to enhance the inclusiveness and effectiveness of microfinance programs for women-centric development in Gujarat.