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Micro Credit In Mauritius Social Work Essay

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Abstract

In this study, the impact of micro-credit as a poverty alleviation strategy in Mauritius is analyzed. A close link is made between microcredit and empowerment of women through different chapters and how it helps to empower Mauritian women. Women are empowered when they are able to take decisions, have their own roles and responsibilities, are independent, educated and are ready to face discriminations which exists due to deep norms and values of society. Income is the main concept of this study because data collected have proved that microcredit helped to increase income generated through these women business. This study has raised many questions because it is observed that microcredit tend to empower economically but very less in social terms. Findings have showed that women situation have changed but not that far compared to other countries where microcredit is very popular. Still, microcredit has encouraged women be follow trainings and develop their skills, and promoted participation in activities of society mainly economic activities. On the other side microcredit is also a vicious circle of debts for women who face difficulties to repay their loans which shows how microcredit create impoverishment of women which very is far from reducing poverty.

CHAPTER 1.0: INTRODUCTION

Poverty is usually defined as the lack of opportunities, lack of education and skills, and also in terms of standard of living. Poverty in Mauritius is not similar like other countries, whether someone lives in urban or rural areas is not valid to categorize him as poor. Poor people in Mauritius (mainly women) are often denied access to resources, to opportunities, education and training for development of skills. This is often the main reason why these people cannot cope with changes occurring in our Mauritians society, in terms of social and economical transitions (IFAD).

There is a real concern to alleviate poverty a ministry of social security and social welfare has even been set up to tackle this problem. It is clear cut that poverty is not just an economic problem but also a social problem affecting life of Mauritians. The government work closely with NGO's and other institution, a National action plan has even been set up to promote economic growth. This includes improving educational system, providing financial support for investment ad micro-enterprises and micro-finance institutions (IFAD 2011).

1.2 Micro credit in Mauritius

Microcredit started in July 2001; it was a project by the IFAD to promote Mauritian women through microenterprises. The aim of this project was to provide financial facilities and support to needy women and promote income-generating activities. Micro-credit is known as the key tool to poverty alleviation (Grameen bank). Micro-credit scheme in Mauritius has brought progress and attracted women there are more than 3,500 women registered as entrepreneurs (Nwec 2010). They are even given financial facilities like Microcredit loans for their business. The Development Bank of Mauritius (DBM) and cooperative bank provides with loans at lower interest rates Trade fairs are organized to these women to expose their product and even Awards ceremony are organized every year to reward the best women entrepreneurs.

The ministry of Gender Equality and child welfare set up micro credit programmes to target women in poverty. Together with other institution like NGO's and banks, which provide further contributions to assist needy women. In Mauritius, the National Women Entrepreneur Council is responsible for women entrepreneurs, providing trainings in their incubators found at Phoenix. Empowerment of women is very important for economic growth, that is why an empowerment programme has been set up in 2006 and the National empowerment Foundation (NEF) in 2008 to ensure the good purpose of the empowerment programme (NEF 2009). There are very few reports that

1.3 Problem statement

It is a fact that micro-credit is very important to fight poverty and many studies have shown its positive impact in terms of standard of living, income, education, and health. However despite these strategies, poverty still remains (Mosley 2002).

The main question is that has it really empowered women? By empowerment we mean women being emancipated, taking and participating in decision making access to employment and trainings. But statistics show a different result because women in the active economy represent only 43.7 % compared to men 75.5%, only 35.5 % of women in Mauritius work (CSO 2011).

Microcredit was supposed to help in creating job opportunities for women, Statistics show that there is a population of 645 875 women, and the number of female-headed household in Mauritius and this wage gap which exist between men and women make them less economically active compared to men. Only 30% of women work in government services in Mauritius, it has been observed that 61% of women are unemployed and the rest that is 33% receive an income of Rs 4,000 compared to the 8% of men. Women income is around Rs 8,350 compared to men Rs 12,560, we are very far from reaching gender equality. How far has microcredit helped in poverty alleviation, are these strategies enough to combat poverty, how did it change or not image that society set on women and their role, responsibilities and economic activities are the questions this study will try to answer.

Aim of study

To assess the impact of micro-credit programme in poverty alleviation among women in Mauritius.

Objectives of the study

To evaluate the benefits of microcredit as poverty alleviation tool in Mauritius.

To determine how microcredit promoted socio-economic development in Mauritius.

To describe how micro-credit alleviate poverty through income-generated activities.

To analyze how women empowerment through micro-credit helps to alleviate poverty in Mauritius.

1.4 Layout of study

This study is organized as follows: Chapter 2 give deep explanations about main concepts used in this study and how they are linked. Another part of this chapter describes studies conducted on the impact of micro-credit on women and how it helps to alleviate poverty in other countries and how different authors view it, its effect on these countries and also problems they faced.

Chapter 3 describes methods used to collect data for this study and why it is appropriate. Different parts of this chapter define the problems faced during data collection, how data will be analyzed and ethical considerations to be respected for this study.

Chapter 4 provides an in-depth explanation of all findings during data collection and is followed by the discussion part where findings will be linked with other authors' explanations from chapter 2.Chapter 5 is the conclusion, a summary of this study followed by recommendation which might help to bring better improvements to this field or encourage other research.

CHAPTER 2.0: LITERATURE REVIEW

This chapter provides an in depth analysis of concepts used in this study and how different authors assessed microcredit effectiveness on women and poverty, how government and Ngos help to promote women. There are also various studies conducted across the world showing its impact on socio-economic development in many countries in contrast with Mauritius.

2.1 Concept of Poverty

Poverty is defined in different terms and it is difficult to have an exact definition of it. The UN (United Nations) defines poverty as a denial of choices and opportunities, a violation of human dignity (Langmore 2000: 37). It means lack willingness and opportunity to participate effectively in society. UN also relate poverty to lack of income to enable survival, social discriminations that the poor face, and by denial of opportunities, it means that they are denied to participate in decisions in society (UN, 1995: Para. 19). In the Beijing declaration it was mentioned how poverty is characterized: lack of participation in social and cultural life, this occurs in many developing countries forming pockets of poverty: regions where poor lives. A poor is not poor because of lack of participation in civil society but also due to economic problems such as recession which prevent people below the poverty line from having a decent life.

Sen. (1981), who is a famous researcher on the subject of poverty, explains poverty as the lack of basic needs essential for survival and fails to participate in social and economic activities. Poverty can be categorized into two that is absolute poverty and relative poverty. Absolute poverty refers to a situation where an individual is unable to satisfy his basic needs that are food, shelter and clothing and health. Peter Townsend (1979) defines relative poverty as a situation where an individual standard of living is below the level that they are unable to enjoy normal way of life (Reporting poverty in the UK p 15). It is more about standard of living where there is an individual possess a big villa, new brand car, high income whereas another one is at medium level and can at least satisfy his basic needs and stay healthy.

2.2 Women and poverty

More than 1.3 billion of people live in poverty in the world and most of them are located in developing countries like Asia and Africa (UNDP 1996). Women are the one who bear all the burden, they have to manage their household which means work and cater for their family at the same time which is not an easy task. A woman is described as a human being of female sex who can be distinguished through her gender roles and responsibilities in society (Wikimedia 2005). 70 % of women are poor and they mostly come from female-headed households (UNIFEM 2010). Poverty among women keep on increasing, that is why it was conceptualized as Feminization of poverty; an increase in female-headed household (Buduwski 2002). There are various reasons which explain why women, one because there are gender based values like gender roles (housewife/nest builder) which prevent women to emancipate, the increase of divorce increases female-headed families (GAP 2008). There are gender-based inequalities which restrict women to have access to resources and opportunities; which failed to empower them. There were more than 22 millions of unemployed women in the world in 2008 and in developing countries like African countries and south Asia women engaged in insecure jobs (UN 2009). Empirical studies conducted in Poland showed that there are more than 90% of women who are engaged in household work and also their paid, which is a real burden for them (Mandal 2008:163).In Mauritius, Women are more likely to face poverty than men; a report of the CSO showed that 8.9% of women compared to 8.1% of men live in relative poverty in 2009. There is a gap in income between male and female employee only Rs 7,100 for female and Rs 12, 330 for male (ESI 2010:11).

2.3 women and Poverty alleviation

Poverty alleviation is based on different strategies to reduce poverty at individual, group and community level. These strategies include education facilities to promote socio-economic development and break down barriers leading to disparities in our society (Barder 2009). Greenberg (2005) defines poverty alleviation as set of strategies to reduce the impacts of poverty on vulnerable groups. In 2000, the millennium development goals were set up to reduce poverty (UN 2000). It was followed by a guideline for poverty alleviation to better help organizations over the world to achieve this objective (DAC 2001).

To alleviate poverty barriers which restrict access and participation in society have to be removed (UNDP 2011). These barriers include; problem of unemployment, promoting human capital through educational facilities, trainings for development of skills, health facilities, support to family in difficulty through social benefits, promoting access to services through financial support and building up of self help groups to create solidarity and policies to reduce discrimination and inequalities towards the poor (Headey 2006).

2.4 Poverty alleviation among women through empowerment

During the Women conference of the United Nations, it has been declared that to have stability in terms of social, economic, politic, culture and environment, achieving gender equality and empowerment is the essential keys (UN 2009). Empowerment refers to creating opportunities so that individual can develop their capacities in terms of skills and knowledge to face social prejudices in society (Waterhouse 2003). It is the 3rd goal of the Millennium Development Goals which aim to reduce poverty till 2015. Empowerment takes place through decision making, building up of self-esteem in women, improving their status in society and at home (Cheston and Khun 2002). Kabeer (2003) focus on empowerment as being able to make own choices and taking decision to achieve goals. A report from Unifem declares that to achieve women empowerment, access to all basic resources is important (Unifem 2008). Women do not only face money problems but also social ones through exclusion education, politics, and the world of work.

Empowerment of women is very important to promote their participation in economic activities of society (Eyben 2008). Women are the ones who are most engaged in work and produce more but yet they only 10% of the income (Clinton 2009). Women tend to invest more even at home, a study done in Brazil showed that all household where women were in control improve the chances of survival of their children by 20% (OECD 2010). Why is empowerment important? It is because women are the one who are less educated, denied access to resources, support (financial), education and are mostly vulnerable in society, they are discriminated and exploited both at work and at home (Mayoux 2009). To achieve empowerment there are intervention from both government and Ngo's working together to reduce poverty and promote women. In Mauritius, the NEF has been set up to promote empowerment of women through

2.5 Women and microcredit

Micro-credit is too wide which makes it difficult to define (Oikocredit 2011). It is generally define as small loans granted to people from poor background to help them improve their income (income generating activities) and way of life (Grameen bank 2011). In the 1800's, Lysander Spooner found out that providing credit facilities to small famers was very successful that where came the new term micro-credit today, poor population have accessed to loans and payment facilities. In 1976, Muhammad Yanus (winner of the Nobel Prize in 2006) created micro-credit facilities in the Grameen Bank in Bangladesh. At first it was only meant to assess the facilities which can be provided to the poor but later proved to be a key tool to reduce poverty. This was followed by the United Nations declaring the year 2005 as the international year of Micro-credit with five main goals among which were to promote contribution of micro-credit facilities and enable accessibility to these facilities (UN 2005).

Micro-credit has been proved to promote social development and a tool to struggle against poverty in both developed and developing countries (Da Silva et al. 2007). MFI reports showed that 70 % of women are beneficiaries of micro-credit loans, this give an overview of women vulnerability and how they consider micro-credit loans as a way to get out of poverty.

One main question is raised: Why women? Evidence have showed that women are the ones who are less paid and work in secondary sectors where they are at risk and do not have benefits compared to men in society (ILO 2008). Women face too many inequalities such as unemployment and discriminations based on gender, it has to be noted that Mauritius gender statistics showed that we are ranked 63rd out of 146 countries on the Gender Inequality Index of the UN (CSO 2011). That is why micro-credit scheme has been introduced to promote access to resources such as land and infrastructure and also access to credit facilities. Besides Micro-credit programme also include training of women so that become independent and confident in their business (CIDA 1995). Micro-credit help women to improve their income household and build a safety-net which secure them and reduce their vulnerability to fall into traps of poverty., they become more mature to deal with issues of their business and make their own decision and choices (Mends 2000). Through entrepreneurship, Women have the opportunity to overcome cultural norms which trap them into their housewife role. (Swain and Wallentin 2007).

2.6 Empowerment of women through microcredit

Many authors find a link between credit and empowerment. Cornwall and Edward (2010) consider empowerment as crucial to overcome economic and social dilemmas in society. Micro-credit is a system which gives access to finance through loans and savings for entrepreneurships. Studies have shown that micro-credit has been useful to the poor household due to low cost (Miller, Morhnee, Stephens and Tazi 2006). It is a fact that micro-credit programme improved women situation (economic, social, political, cultural) and also in terms of education (trainings) allowing them to develop their skills (Johnson & Rogaky 1997).Empowerment has two dimension one in terms of household, women tend be at home doing housework and taking care of their family. With micro-credit programme they work and earn their own money which improves their status and their role at home compared to their previous role. They feel in a better position to apply their own decision (Osmani 2007).

There were extensive debates about women and poverty and the impact of micro credit as a poverty alleviation tool. Many literatures have referred to the micro-credit scheme as the best alternative to reduce poverty and to empower women (Bernasek, 2003, Bhatt 2001, Khand Ker el al 1998, Leach and Sitaram, 2002). An assessment on the role of micro-credit schemes conducted through a survey in the South Asia together with Ngo's showed that these schemes have improved economic status of women in society through education and training to acquire professional skills in entrepreneurship so that they become self-efficient and this has improve their social status in their household and improved awareness (Hashemi, Schuler and Riley 1996).

Micro-credit programmes include Income-generating strategies, increasing awareness and empowering women. This help to socio-economic development of the country through education, participation in decision making, improving quality of health, sanitation and nutrition but most important of all to alleviate poverty through food security, income, improving literacy rates among women, thus leading to social inclusion of women in social, economic and political activities (Bernasek and al. 2003).

Halkias, Nwajiuba, Harkiolakis, Caracatsanis (2011) study targeting the "Challenges facing women entrepreneurs in Nigeria" with a sample of 62 females entrepreneurs a self-administered survey showed that women showed more devotion and effort for their entrepreneurship compared to male entrepreneurs. Another result was that female entrepreneurs can professionally control their entrepreneurship and maintain their household effectively. Micro-credit had also an impact on savings made each month to improve standard of living of their families (Siringi 2011). Kabeer (1998) found out that micro-credit is an opportunity for women to bring their own contribution in terms of money. Policies should target more social and educational spheres to encourage women in the combat to alleviate poverty. Besides (Rogers and Youssef, 1988; Consultative Group to Assist the Poor - CGAP, 2004: 6) findings showed that a rise in women income has positive influence on education, and health of children in the household.

A study conducted in Nepal showed that more than 68% which represent more than 89 000 women over 130 000 who were involve in empowerment programme and experienced a change in their role at home and towards their own community, they have become someone who is respected for efforts and sacrifice don to reach this target of women with confidence and esteem (Ashe and Parrot 2001). Micro-credit has open new avenues for women in terms of education and development of skills. Having access to credit is more secure for women and they are able to take care of their family. Reports have shown that women are the one who spend more for the welfare of their family; in-depth interviews conducted in Rwanda with women benefiting from micro-credit scheme have shown that more than 54% of them are now able to manage on their own in their business without men (URWEGO 1994).

It also helps to build up their self-confidence and self-esteem. Self-confidence is part of the aims of empowerment of women. It is the based to change women perception on various patriarchal aspects that exist in society and this also enable them to develop skills for the success of micro-credit. Micro-credit is a programme which train women to become professional business women and to be able to control their own business. Microcredit programme have empowered women leading to a change women role, status and relationship at home and in society. In-depth interviews conducted in Rwanda showed that there was an increase of 69 % in self-confidence and self-esteem of women (Ashe & Parrot 1994). Studies conducted by Gobezie (2007) showed that more than 54% of women (micro-entrepreneurs) feel more at ease to deal with decisions both at home and their enterprise with the increase in self-esteem and self-confidence.

2.7 Government contribution

The government plays an important role in promoting welfare through programmes and policies to better address the problem of poverty and promote equity (Cawthorne 2008). Funds from taxation help for development of the country and the government establishes a framework to know how to use funds efficiently (Serpa 2008). There is a belief that government intervention in micro-credit to give access to credit facilities only. But reality is that it acts as facilitator which provides access to service to the poor without ceilings. Another question usually asked is how micro-credit helps the poor? It increases income of poor household and improve patterns of consumption. When the needy people have access to credit, it helps them to maintain basic standard of living and have cash for emergencies. The government has an aim to promote welfare of citizens' mostly needy ones; through micro-credit policies to better target and assist them but also programmes, which create opportunities to poor people to develop skills and gain experience in entrepreneurship and learn how to manage their business. Several reports have shown positive impacts of micro-credit on women but there is big dilemma, political influences which exist and result to abuses, giving privileges to others and drainage of funds to be allocated to micro-entrepreneurs (CGAP 2002). Such influences affect good running and success of these programmes.

Similarly to others countries like Bangladesh where the government work together with banks like BRAAC, in Mauritius there is the DBM which provide micro credit loans to people which also aim at socio-economic development and empowerment of women but through financial facilities. Micro-entrepreneurs (women) benefit from loan facility of Rs 150 000 with a period of five years for repayment, only women willing to create a small enterprise. These women are registered at the NWEC where they follow trainings to become independent wage earners (Nwec 2010).

2.9 Constrains of Micro-credit

Micro credit was supposed to play a vital role in reduction of poverty but it also has its dark side. This strategy is seen as being too simple to reduce the problem of poverty (Endeley and Thompson 2005). Explanations provided to justify the failure of Micro-credit programme is that it failed to target real needy groups, it can observed that non-poor are taking most advantages of this programme and poor are becoming poorer, criteria of selection are not appropriate and this causes abuses (Copestake, Morduch, Dugger 2004). For Duvenduck (2011), until now there have not been valid evidence which prove that microcredit positively affect women. Abuses are not only from rich people but also from male in households where women benefit from micro-credit schemes. They are aware of their wives' eligibility to access micro-credit loans and use them for their own business having nothing to do with women entrepreneurship (Goetz and Gupta 1995). This raises the question of gender equality which exists in society and men always getting involved in female activities.

Furthermore, the main purpose of micro- finance was supposed to provide credit a facility in terms of loan to the marginalized group to help them to generate income for their own business, the state has failed in its mission. (Swain et al 2008:193). It has rather created a vicious cycle of indebtness among women; they get trapped and become dependent on the state and banks. The problem is that they often failed to have the level of profit expected and have to work double to save for loan repayment (Copestake 2001). A report published by business week (2005:4) showed that interest rates are higher and failure to repay loans means closure of their business and huge debts to clear.

It can be seen that intervention and contribution of private and public sectors are thin. There is a lack of continuous assistance to women entrepreneurs which makes the safety net very vulnerable as any mismanagement and low profitability can put the business at risk (Neff 1996). All these shortcomings of micro-credit have raised a question; is micro-credit really a tool to reduce poverty? Findings from different surveys showed that it really reduced poverty in the world but to some extent. Kandler (2005) found out that 31 % of women participating in micro-credit programs have been out of their abject poverty in Bangladesh. Another fact of micro-credit success is the increase and improvement of consumption patterns of poor people together with the increase in income this has lead to economic development. Kah (2005) reject the positive results of micro-credit in the developing countries. After a study in different countries with different methods like interviews, surveys and ethnographic surveys, Kay found out that it is a too optimistic assumption to classify micro-credit as a tool to alleviate poverty.

Micro-credit programmes also have short-comings which tend to be ignored. Antaitwe (2006) claimed that there programmes have failed to meet their aims and objectives. The reason provided was that the fact that people who deserve this service and assistance were excluded from these programmes (Hulme 2003). Another short-coming of micro-credit is whether these programmes are accessible to extremely poor people. Reports from the United Nations (UN) showed that these programmes are inaccessible to extremely poor because of high interest rates and lack of infrastructures and structural patterns to better assist needy people so that they develop their skills and become efficient in society.

Peredo and Chrisman (2006) focus on the fact that network should be created to enable better sharing and also facilities in terms of resources and management of enterprises including cost of resources, methods of distribution after production and how to value their products. Pollin (2007) consider microcredit as undervaluing entrepreneurship because it has rather encourage short-term income activities. Entrepreneurship is more based on investment of profit (Harper 2007), however micro-enterprises profit are used for personal matters like luxuries, education, health and other emergencies rather than for development of the country.

The main problem with micro-credit shemes is that they deal with economic problems than social ones. It is clear that poverty is the socio-economic problem for most of the world. The male dominance which exists in the most societies acts like a barrier for women success. Men have control over everything in society, even incomes earned by their wife in their enterprise are used for other purposes and women barely have access to it (Omorodion 2007). All these deep-rooted perception, values and customs prevent women to protest because they fear to be harassed, beated up, humiliated by their husband. To some extent micro-credit create tensions in households in most developing countries. For example Mauritius is a country where men power prevails both at work and home. Men refuse to accept women emancipation and recognize their capacities which are very essential for the success of micro-credit programmes (World Bank 2006). This might explain the high rate of domestic violence which was 39% in Mauritius in 2011 (ESI 2011). It seems that micro-credit programmes have been introduced only to increase economic activity and supply of labor through job creations (Pitt and Khandler 1998).

Micro-credit programmes were supposed to increase income of poor households but it failed because most of the money saved goes in loan repayment and in case of emergencies access to money become a big issue (Brett 2006). The fact that women have low status and are seen as weak ,ignorant and low skilled in society they tend to take loans to move further on the social ladder of society (Lucas 2001). They are trapped to being dependent on their husband and even more when they fail to repay their loan. This ideological image of women responsibility being at home to bring balance is a barrier to success, and though the effort to achieve gender equality in society it has failed. All government strategies for integration of women in society have failed and have provoked misconceptions about women failure in micro-credit programmes and confirming stereotype on women weakness and incapacity (Nesbitt 2006). Too little concerns are attached to empowerment of women (Bellman 2010), it is not only based on increasing their income and developing skills but it is based on changing deep perceptions. It is very difficult to change perceptions people make on women (Swain and Wallentin 2007:25).

2.8 Summary of literature review

Through the previous paragraphs, in-depth explanations about the impacts of micro-credit have been given by different authors. It seems that micro-credit programmes have been very efficient in terms of income-generating, development of professional skill to manage own business, emancipation of women in the World. Women have been empowered by these programmes through increase of confidence and assertiveness and independency. The importance of empowerment to alleviate poverty is pointed by many authors; micro-credit increases their awareness and make women more efficient in society. It has brought changes in family income and standard of living and a change in roles that women become entrepreneurs this imply devoting time to both their business and their family which is very hard and often end into conflicts. The government and Ngo's also play an important role to promote development and emancipation of women together with policies to protect and respect their rights and programmes to make them successful women in the future. Despite all positive impacts of micro-credit on women, there are also short-comings. Micro-credit encourage women to take loan to build their own business and are also trained for it but there is not enough assistance for mentors to make sure these women are on the right track and to counsel them in case of problem to tackle within their business. The problem is when these businesses are unable to make enough profit to repay their loan, there went to deficit and loses their business, all their efforts, time and sacrifices made to achieves this. This result to women becoming dependent on their husband again and men control them again which means empowerment has failed. Different journals have shown how this patriarchal perception which exists in society prevents women to achieve success.

CHAPTER 3.0: METHODOLOGY

This chapter focus on the research method used during this study followed by the way data was collected and who were the respondents together with ethical matters during data collection. It gives a detailed explanation of how data collected were analyzed and presented.

This study aimed to assess the contribution of Micro-credit on Mauritian women. Micro-credit forms part of the poverty alleviation programme to alleviate poverty among women. This study focus on women engaged in entrepreneurship and how effective are the support that different bodies of the government provide to them. Through the study, data collected will to assess whether objective set were achieved namely assessing the role of micro-credit in poverty alleviation among women, the impact of micro-credit on gender equality in Mauritius; if empowerment of women really took place or it was a mere illusion and thirdly if micro-credit really reduced poverty among women.

3.1 Primary data

Qualitative methods are used mostly in social science studies because of its different techniques which help to gather data to understand social phenomenon more deeply (Denzin 2005). It focuses on exploring the nature of a problem in-depth and explaining it, this method consists of focus group, in-depth interviews, case studies and observation (Mora 2010). Qualitative questions are more about what causes something happened? How it happened and why? And through collection of vivid data the researcher can do interpretive analysis (Flyvbjerg 2006). When talking about qualitative methods it also means validity, collecting valid information about real situations help for interpretation of results (Guba 2005).

Qualitative methods are more suitable for this study because it is based more n personal experiences of micro-credit, using questionnaire or statistics will not reflect the real impact of microcredit in alleviating poverty among women, qualitative methods are more in-depth and are valid.

3.2 In-depth interview

In-depth interview is like a discussion between the interviewer and the respondent (Rand 2009). Such method helped to collect valid information about the real situation (Sofaer 2002). Same method was used in the study of Madichie and Nkamnebe (2010) on women traders in Nigeria to assess the problems they faced with micro-credit. Loftland (1995) considers it to be the best type of interview because it is face to face and the interviewer can observe and probe subjects for answers.

Misunderstandings about question can easily be clarified in front of subjects encouraging more positive responses from them. In-depth interviews tend to apply for study on programs or policies in a country, where the interviewer ask questions to subjects about their experience, opinion and recommendations for future improvements (Boyce 2006). This is suitable for this study where the impact of microcredit on women will be analyzed through in-depth interviews.

3.3 Data collection

Interviews were conducted individually with women respondents and social actors like Smeda and Nwec. During interview, which was of 30-45 minutes, each answer from respondents was noted down in a block note and interviews were based on two weeks in the month of October.

However the problem with this method is that it is time consuming to interview and the availability and willingness of respondents to answer to my questions can become issues and the cost of transport to go and interview them may be high (Fold and Gonzales 2010). During data collection same problems were faced, difficulty to access these women entrepreneurs because they are located in many parts of the island but with the help of the Smeda and Nwec, it became easier. Respondents were very reluctant to answer to questions at first but while developing a friend environment they started to go more in-depth in their answers which were very rich in terms of data. Another problem faced was that these women were busy in their business and had to set a specific time to interview them but they were very welcoming when going for the interview.

At the Nwec, they were also very welcoming and tried their best to help me with information needed for this study and tried to answer to all questions about women and microcredit and what is the real situation of women.

3.4 Sample design

Using a non-probability sampling method, from a population of 3,500 women-entrepreneurs, 10 women micro-entrepreneurs registered under the Smeda and Nwec were selected randomly, but they were among those who applied for a loan scheme for their business in different part of Mauritius who were trained by these institutions and applied for micro-credit loan from the DBM. They are more appropriate to explain more in-depthly the impact of micro credit through their self experience.

Furthermore 5 social actors from SMEDA, DBM, NWEC, concerned with Micro-credit and empowerment of women in Mauritius through training, management and financial support to women in poverty. They have been selected because they deal with women and are better aware of their situation and the current problems they face to better assist them through new strategies and programmes. Their answers will help to understand the real situation of women in Mauritius and how micro credit is helping or not.

3.6 Ethical considerations

Ethics is very important in any study, it is a code of conduct that a researcher should always follow to avoid ethical issues (Resknik 2011). Ethics concerns what is legally and morally accepted (Miller 2002). Ethical consideration when conducting a study is very important, there are duties that the researcher should apply concerning participants and the research itself (Bound 2012) Consent of subject before interviewing them is important to avoid any conflict or problems with law (Elsner 1991). Confidentiality and privacy of respondents are other important aspects when conducting interviews. At no time shall personal information be disclosed because it might be harmful to subjects or a threat to national peace (Sasse 2001). Anonymity will be respected because subjects will not give their name or personal contacts during the interview, only information needed for the study will be collected.

3.7 Data analysis

Data will be analyzed using a thematic approach that is answers of respondents will help to make themes which represent the main key concepts of microcredit as a poverty alleviation tool among women.

3.8 Summary

The impact of micro-credit on empowerment of women will be analyzed using qualitative methods that are structured interview with 10 women micro-entrepreneurs and 5 officers concerned with the programme. In order to provide answers to the research question mainly the role of micro-credit in women empowerment, how it promoted gender-equality and the same time help to alleviate poverty in Mauritius. During interviews, ethics will be respected in terms of confidentiality, anonymity, respect of participants, and consent of subjects before conducting the interview. All data collected will be presented in terms of concepts in the following chapter. This will lead to conclusion about whether microcredit helped to reduce poverty among women or not? Or if women have really been empowered?

Chapter 5.0: Findings and discussion

This chapter describes results from interviews conducted with women entrepreneurs and other organizations related to microcredit like Nwec, Smeda, and DBM. Data collected through interviews showed a more in depth situation of women in Mauritius, there true picture of Mauritian women. Answers obtained by respondents enable to create concepts which characterize the impact on micro credit in alleviating poverty among women. Respondents will be referred to as follows in this chapter; women entrepreneurs Respondent will be coded as 1: L1, 2: L2, 3:L3, 4:L4, 5:L5, 6:L6, 7:L7, 8:L8, 9:L9 and 10:L10 and Nwec and Smeda as follows R7, R9.

5.1 Income

It is known that the main feature of microcredit is that it increases income-generated activities; many studies conducted abroad have showed this as seen in chapter 2. Micro-credit also promoted income-generated activities among women in Mauritius. Findings show that income is one the main themes of this study, most respondents agreed with this fact. For other respondents L5, L10 microcredit was very positive, in terms of income increase, they have been able to save up some money for other use apart for their business.

L2 replied to the question "What changes did microcredit brought in your life?", she answered that "before she was staying at home while my husband was the main source of revenue and with time as our children were growing up his income was not enough to cope with expenses mainly for children needs. That why she decided to follow training offered by Smeda to become a women entrepreneur and have my own business…" For L6, microcredit has helped to lighten their economic problems and enable her to have her own revenue to invest for her family welfare. However L7 responded negatively about the fact that microcredit helps to increase income, for them 'This increase in income seems very invisible because I am still in the same situation as before." L4 said that "income does not increase as expected mainly when starting new business profitability is not much as big business in Mauritius".

Respondent R7 answers focus more about how microcredit promoted income-generated activities for women. R7 said "Microcredit is a very good strategy which help to promote women image in Mauritius, it helps to empower them economically leading them to become independent in terms of decision making, managing their business, Our incubators helps to train them in their fields and provide counseling to these women about how to set up their business with business loans from other institution like the DBM to provide financial facilities to micro-entrepreneurs." However R7 described more needs to be done for women in Mauritius, "microcredit in itself is not helping as such".

5.2 Empowerment of women

Findings show that with the training which these women followed, they have acquired many skills and also became self-efficient, taking their own decisions, managing their business. All respondents positively responded to the question about how microcredit has empowered them? L6 replied that "This project of empowerment helps women to develop their knowledge and become independent." When respondents were asked how have you been empowered? Most of them answered that before they were staying at home, doing household work and taking care of their family. L2 and L6 view "microcredit as an opportunity to become more efficient," they are now able to bring money for their family and satisfy their needs and enjoy life but at the same time saving it.

During the interviews, L1, L4 and L8 said that "since they became entrepreneur, they are now participating in all decisions their business but also at home which was not much considered before." However for L9 women tend to be empowered economically instead of socially, microcredit leads to raise income, development of skills but what about social empowerment women still face discriminations by men and society. She said that "she still have to ask permission to her husband when going to work and even in her business her husband always interfere." L3 answered that there are too many barriers which prevent them to achieve, domestic violence, refused access to certain facilities or even face conflicts with their social role of housewife because they have to work even odd hours in order to meet profit targeted.

Respondents were asked a question if they think more can be done to empower women, R7 answered that "women empowerment is at the heart of our norms and values, "we attach importance to women as nest builder not as a worker, that is why society find it difficult to accept women being an entrepreneur and being independent, it will take time for our society to adapt to this change.

5.3 Development of skills

During field work at the Smeda (R9), tutors were interviewed about their classes and how these help women. The respondents said that "women respond positively to these classes which are done for approximately 5 months or less. During which they are trained in the sector they want to operate afterwards." Respondents mentioned that these strategies are very important to help women to develop their skills and knowledge and make it their source of income mainly for those facing poverty. "This is a good incentive by the government to provide opportunities to these women, re-value them in society and giving them the status they really deserve". Many of these women have a very low educational background, with training offered by Smeda and Nwec; they are given opportunities to develop their capacities which maybe were hidden in many fields like handicrafts, textile, food, and jewelry.

This aspect of women empowerment is to achieve equality in Mauritius. Everyone deserves the same chances and the government is helping to achieve this through microcredit, creation of the national women entrepreneur council and the small and medium enterprises to provide support to these women. This micro credit programme is an open door for women to acquire leadership skills, becoming professional in their own business, part from their filed they also learn about how to market their product to attract customers. Like all the respondents, L6 view about microcredit is that it was of great help because she never had "the opportunity to continue her studies because her parents did not have enough money to send her for tertiary studies." With microcredit she has been able to widen her knowledge in many fields which were unknown to her which is now her source of income.

5.4 Creation of employment

One main characteristic of microcredit is that it creates employment. It is true that women entrepreneurs in Mauritius are trained to develop their potential skills and learn others too (management skills) in incubators across the country. After their trainings some will create their own business or some join their friends or simply join cooperatives. For L1, she has said "I work along with her mother-in law and there are no other employees because this reduces cost". However when a new business emerges, it cannot employ too many employees else the cost for employees salary might be higher than profit accumulated.

Most micro-enterprise built up by women usually consists of 8-10 employees who work mostly in manufacture of products. L6 said "She employed 5 women in her business of pilchard's production; these employees help to increase production which result to more sales and profit." However for L7, the fact they she work along in her business, she has all responsibilities and it is very difficult although it is a small business. Other respondents agree that microcredit helps to create employment but there are fields which do not promote employment on long-term basis, for example L4 is in the production of candles, but people do not buy candles every day, compared to pilchard's production which attracts more customers."The fact that microcredit creates employment is very illusive, because not all women are able to employ other women in their business but many do it because of work load and having help from others is very useful to be on time with manufacturing.

5.5 Profitability

This term profitability was a common answer from interviews conducted with these women entrepreneurs. L2, L4, L5 said that their business was not a big but though being a little business they accumulated some profit from which they saved for their personal use (family), however for L7and L9 "most of the profit accumulated tend to go in their loan reimbursement which they usually take on a scheme depending on how much they need for their business."

One would think that microcredit helps to become millionaires is just an illusion because they have other costs to pay like materials, productions of their goods, marketing costs, employees and other petty things. Starting a new business with a new product is not easy task said L7, to make profit there should be sales to have sales there should be clients to buy the product which is not easy and to have clients there should be marketing at first but L1 said that with time and experience it became much easier to accumulate profit and invest in business but also for the family. With 10 years experience in micro-entrepreneurship, L1 has been able to achieve success with her business in jewelry, she is now independent and often satisfies her children needs in terms of luxuries also, and Microcredit improved her life during these 10 years.

5.6 Expansion of their business

Microcredit is said to be a useful tool to alleviate poverty, but when considering all these steps to achieve this, there are many barriers like financial barriers later in other paragraphs we will see about social barriers. It is a fact that microcredit promote micro-entrepreneurship among women, they get support from institutions like Nwec , Smeda and others to built up their skills (professionalism) and set up their own business which they will control and also get financial facilities which are at lower interest rate. Respondents being for years in micro-entrepreneurship were asked if it was difficult to expand their business L1 answered that "expansion of my business took time but through years and the help of my husband it became reality".

One aspect which should be considered is that the loan respondents applied for, they have to reimburse it with their business profit. For L7 this was the main problem, most of profit was for repayment, there were no money for to invest in her business and had to take other loans to achieve this becomes like a vicious cycle and they will always be struggling hard to accumulate profit to be able to repay their loan. It is not easy to make profit when a new business starts; it has to look for potential clients who are interested in such products.

5.7 Change in Roles and responsibilities

Respondents were asked one question during their interview, if whether their roles and responsibilities have changed since they have their own business. All of them answered that since they started their own business they have to devote more time to it and at the same time devote time to their family. L1 said that 'My work does not affect my roles and responsibilities I have at home". For many of them it is not difficult because they have the support of their family who help them in terms of taking care of the house when they are working, they help in preparing dinner when they are late and even helping in their business.

For most respondents, microcredit has changed their roles, they have become entrepreneurs, leaders of their business, and they attach lots of importance to their work. L1 said "this represents a great responsibility for her and she will prove that that is a good leader despite the norms and values of our country which picture women as housewife. However for those having no family support, no partner at home, it is more difficult to cope with all these responsibilities. On one side they have their children which are sometime left at home and on the other side these women have to work to satisfy needs of their family.L9 found it difficult to cope with all these responsibilities because her children are still young and she lives alone with them, and on the other side she has financial problems, that is why she followed the training to become a micro-entrepreneur. She often has to work odd hours to meet customers' orders because this business is her only source of income. After work she has to go home to take care of her kids and also of the house, it is like a daily burden for her.

5.8 Improvement in Standard of living

Similarly with the increase in income, these women can now enjoy a better standard of living though it is not that much they have seen improvement in their lives. With their income, they invest more for their family in terms of educations (secondary/tertiary) and also better health care to their family. Education is part of our culture in Mauritius and parents also invest more for the future of their children. Microcredit has brought a little transformation in women's life in Mauritius. All respondents said that they now have possibilities to do more things which were unthinkable before due to financial problems.

For all respondents, microcredit had a positive impact on their standard of living, L1 is the mother of two children of 16 and 18 years old, she said that with savings he made from her business she is now able to invest n their education which is crucial to build their future. L3 related that "with income generated for her business she has been able to buy a car for her family and even built their own house which was their main projects since many years." Microcredit helps to reduce poverty because with revenue accumulated these women and their family can have a better life.

5.9 Social values

Mauritius is a country which attaches high importance to norms and values. Usually our values are that women should stay at home to take care of the family. But recently we have seen that values has changed women now go to work and are very independent, but it is very difficult for society to adapt to this abrupt change. During interviews, respondents were asked about their husband reactions and opinions with the fact that they have their own business. Most of them replied that their husband supports them fully in their business but "their husband tend to always supervise them or interfere in their business, "said L5 and L6. L7 said that "despite having control of her business she still need her husband permission when going to work or going out, her husband still interfere in her business and control profitability." Her husband always wants to have a say in the business activities because he thinks I might go on the wrong track."

Findings also showed that some respondents ended in doing their business together with their husband and children, it became a family business where each member participates to make it successful. There were also cases where this business is taken over by the daughter it is a female business succession from mother to daughters which perpetuated through generation, this helps to ensure the future of the family in terms of money. The Mauritian Women is portrayed as submissive, devoted housewife, nest builder; it is difficult to accept women going out of the house to work, women being emancipated, and independent, successful leaders. L6 quoted that "Mauritius still need to progress to adapt to these changes compared to foreign countries where women are in control, women are president in charge of a country. This adaptation process already started but it is still very slow, because there are deep perceptions in the Mauritian society mainly about women."

5.10 Loan repayment

According to respondents, they all took a loan for their business, most of them have succeeded in repaying their loans but some failed and faced difficulties. L7 said that "failing to repay her loan, she got no assistance from the bank and got higher interest to pay. In this dilemma she had to take another loan to repay other loans, which created more debts.' This problem happened because she failed to achieve targeted aims of her business and this was followed by many other problems, they even had to take other loans to repay their debts which are a very negative side of microcredit.

Loan is a good facility when starting a business, for L1 "the most important thing is to plan their budget first and then taking the sum of money needed to set up the business with the bank." She said that she asked for loan scheme which was appropriate for repayment in due time, taking too much and failing to accumulate it in terms of profit to reimburse is not the best thing to do." However many of micro-entrepreneurs do it without thinking about the consequences in case of delay in repayment.

5.11 Discussion

Many studies conducted in other countries have shown that the positive impact of microcredit is namely income increase, empowerment of women, and creation of employment [Geneva 2009] but there are also problems which micro-entrepreneurs face. Similar findings have been found in this study showed that women entrepreneurs observed an increase in their income with their micro-enterprise. Income is important for our survival nowadays, without income it is difficult to enjoy a good standard of living, mainly with all the recession problems in the world, all price are increasing. Life is becoming harder and without an appropriate job it is very difficult to cope with this abrupt changes transforming Mauritius. Findings have shown that most of these women who were trained in incubators of Nwec and Smeda were able to have their own business and are now able to earn their own income.

on the other side, is this income enough is the main question, when starting a new business, it is on small-scale, few customers or none at all, it takes time to built a good enterprise said all respondent. However this is not for long-term period as your business start to be unprofitable or financial issues erupts there are not doors to knock but interest rates on loans taken becomes higher and these women become more in debt than before impoverishing their situation.

It seems that women entrepreneurs now have different opportunities to become professionals, there are able to follow training in their field and also learn about leadership and marketing for their future enterprise. Somehow it also promotes education because these training are made for women to learn and acquire skills just like Riley and Hashemi (1996) mentioned in chapter 2. There are 3500 entrepreneurs in Mauritius with many of them who are micro-entrepreneurs, through their training; they prepare them to work. Therefore Microcredit has helped to promote self-employment in Mauritius, as women have their own business, earn their own income and control their business. This has greatly helped to reduce poverty among women in Mauritius.

Women are also able to enjoy a better standard of living with microcredit, they have been able to generate profit and saved for their family mainly education for children and health care for their family as Siringi (2011) mentioned in chapter two. That's what findings shows but microcredit did not helped all families concerned with micro-entrepreneurship, beside the number of entrepreneurs in Mauritius is very low compared to total population who still face difficulties to earn their living mainly women.. Therefore comparing Mauritius to other countries implies considering many aspects like infrastructure, support, resources, counseling, which are not that accessible here.

This study reflects similar result to those mentioned in chapter 2, Women face many constraints with microcredit namely the problem of debts which erupt when a business fails to accumulate profit, they are unable to save money to repay their loans and this delay leads to highest rates of interest just like the study conducted by Copestake (2001). This raises questions about microcredit, does it really reduce poverty? it is not what findings show women tend to fall back to poverty when their business fail , this safety net that is built it up to reduce vulnerability to poverty is not that strong.

Microcredit tend to promote economic empowerment only as Eyben (2008) said, empowerment is more about creating opportunities for women to encourage economic participation but what about social empowerment? Women are still being looked down ,still face unemployment when looking at CSO report about gender in Mauritius, women are still at lower position compared to men, there are also many cases of domestic violence on women, they are being battered by men. With micro-credit opportunities are being opened for women but there is no certainty about how long will these businesses last, there are no follow up done with these new women entrepreneurs, after training they are left on their own, even with banks where they apply for loans there are no counseling sessions, no officers who visit customers with financial problems and they really apply high rates of interest when these women cannot repay. These women entrepreneurs tend to be trapped in these sectors compared to male entrepreneurs working on international scale production with high class products which are sold abroad, why are women not given these opportunities to developed, to expand their skills

CHAPTER 5.0: CONCLUSION AND RECOMMENDATION

5.1 CONCLUSION

This study has shown that microcredit contributed to reduce poverty and empower women. Many people are still unaware about microcredit in Mauritius, if people are asked what microcredit is, they tend to tell you they have no idea. In Bangladesh, microcredit is very popular because it has reduced poverty to some extent and this idea of micro loans started from there. During interviews conducted, women entrepreneurs have given positive aspects of microcredit and how it changed their lives but on the other side they also said the problems they faced like lack of profit, loan reimbursement, and debts. Saying that micro-credit helps to alleviate poverty among women tend to be very contradictory, women who failed to have a successful business faced many debts and rather than getting out of poverty, they fall back in poverty. This questioned the real impacts of micro-credit on women, has it not rather not impoverished women?

Findings showed that microcredit improve financial situation by increasing income and promoting income-generated activities through entrepreneurship but on the other side created debts for many. It did not only create debts but also problems in marketing their products which lead to unprofitability of their business. But apart from these most of respondents are satisfied with micro-credit, it promoted their standard of living, increased their income and standard of living, changed their roles and responsibilities, helped them to developed their skills and most of all empowered them because these women entrepreneurs have been trained to take their own decisions concerning their business and control their business efficiently.

This study prove that more can be done for women, there is not enough incentives to promote women in Mauritius. Incentives should not put women at risk and reduce their vulnerability to poverty. But micro-credit somehow failed to reduce this vulnerability among women, it should be considered that there are more female-headed families in Mauritius compared to before, and they are among those who are mostly affected by poverty. With microcredit they are able to take care for their family but for how long? Microcredit seems more a short-term strategy that a long-term one, it is very risky.

Microcredit has perhaps helped to improve women situation in Mauritius but still women are still trapped in their gender roles, they still have to do the entire burden at home and also have to work to have a successful business. Men help at home is very minimal, this image attached to women is still the same, despite being an entrepreneur they are still controlled by men at home, and men are still powerful and tend to restrict women to emancipate as it should be.

This study have shown that microcredit has more positive impact on women than negative, but these positive impact are for very few women only. There are more women than women in Mauritius, and women are still the ones who face unemployment, poverty, discriminations and are controlled by men. The only way for women to be accepted as they are today is to change the perception that society attach on


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