An Evaluation of Microcredit Practices as a Tool for Combating Women's Poverty

Abstract

Poverty is caused by a wide range of psychological, social, political, and economic factors. Poverty is not simply a result of people lacking skills, knowledge, or the desire to work. Low-income levels, lack of investment opportunities, and limited access to capital make it difficult for individuals to sustain their livelihoods, especially impacting poor women. The microcredit system emerged from the belief that even the poorest can be bank clients—focusing not on what a person is but on what they can become—when no formal financial institutions were available to meet the credit needs of the poor. This system is based on trust, requiring only an idea, a skill, or a desire as collateral. One of the main goals of microcredit is to provide women with financial resources through loans, thereby encouraging their participation in the workforce. Another aim is to help women gain economic independence and achieve a higher status both within their families and in society. This study applies a literature review methodology to examine microcredit practices within the context of poverty alleviation. The subject is discussed within a conceptual framework, and relevant Turkish-language literature is analyzed to evaluate the effectiveness of the microcredit system in our country.