Impact of Digital Microfinance and Financial Inclusion in Transforming Women Entrepreneurship: Strengthening Inclusive and Diverse Economic Growth

Abstract

Digital finance and financial inclusion have emerged as critical drivers of economic growth and women’s entrepreneurship, particularly in developing regions. Digital microfinance platforms enhance access to credit, savings, and payments, enabling women to participate actively in income-generating activities and sustainable microenterprises. However, limited digital literacy, infrastructural gaps, socio-cultural barriers, and affordability issues often constrain adoption. This paper examines the impact of digital microfinance and financial inclusion on women’s entrepreneurship, exploring their role in promoting inclusive and diverse economic growth. The study employs a descriptive and explanatory design, combining primary data from women beneficiaries and secondary sources, with statistical analysis including correlation, regression, and mediation techniques. Findings highlight the transformative potential of digital financial tools to enhance employment sustainability, income stability, and entrepreneurial engagement while underscoring challenges in accessibility and equitable utilization. This paper provides policy recommendations to strengthen inclusive financial frameworks and empower women entrepreneurs in low- and middle-income regions.