Indirect Role of Islamic Microfinance on Women's Self-Sustainability through Family-Owned Microenterprises

Abstract

The study investigates the mediating role of family-owned microenterprises in linking Islamic microfinance to women’s self-sustainability in Pakistan. Rooted in Sharia-compliant principles, Islamic microfinance offers an ethical and religiously acceptable avenue for financial inclusion, particularly for women entrepreneurs in developing economies. The study employs a mixed-methods approach, integrating qualitative perspectives with quantitative analysis to present a comprehensive understanding of the phenomenon. Primary data were obtained through survey questionnaires and analyzed to evaluate the impact of Islamic microfinance on critical dimensions of women’s self-sustainability, including income generation, asset accumulation, financial inclusion, and intra-household empowerment. Results indicate that Islamic microfinance indirectly enhances women’s socio-economic standing by supporting microenterprises that contribute to household stability and long-term sustainability. The findings highlight the catalytic role of Islamic financial services in enabling women to achieve financial independence while reinforcing family-owned entrepreneurial ventures. This research adds to the literature by exploring the linkages between Islamic finance, women’s empowerment, and the growth of microenterprises. It further offers practical guidance for policymakers, microfinance institutions, and development professionals aiming to foster inclusive economic growth, strengthen gender equity, and enhance sustainable livelihood opportunities within Muslim-majority contexts.