Jehona Shkodra

Faculty of Agriculture and Veterinary,

University of Prishtina, Kosovo

E-mail: jehona.shkodra@uni-pr.edu  

ORCID 0000-0001-9207-4098

Role of microfinance institutions for developing women entrepreneurship – the case study of Kosovo

Prespa Ymeri

University of Prishtina, Faculty of Agriculture and Veterinary,

Kosovo

E-mail: prespa.ymeri@uni-pr.edu  

ORCID 0000-0002-3521-9825

Lindita Ibishi

Faculty of Agriculture and Veterinary,

University of Prishtina, Kosovo

E-mail: linditaibishi1@outlook.com

Abstract. Microfinance institutions (MFIs) are the only door of assistance to low-income people and businesses with poor financial performance. Women also fall into this category, as most of them have low incomes and the only way to ensure their own and their families' well-being is to start a business. Given the many criteria of commercial banks, for women entrepreneurs MFIs are often the only option of financial lending. The extent to which MFIs have influenced the development of women businesses in Kosovo will be understood from the research conducted with 200 women entrepreneurs in Kosovo. Interviews were carried out face to face with the PAPI (pencil and paper interview) survey methodology used during April–June, 2019. The data obtained from the survey has been then processed in statistical software SPSS 21.0 The research applies three econometric models to identify the effects of MFI loans on the success of women businesses. The success of women enterprises is assessed using three performance measurements:  fixed assets, income and household expenditures. The results of this study explain that loans from MFIs effect performance of women’s businesses in positive way using fixed assets, income and household expenses.

Received: January, 2020

1st Revision: July, 2020

Accepted: March, 2021

DOI: 10.14254/2071-789X.2021/14-1/8

JEL Classification: B54, C5, G21

Keywords: women entrepreneurship, loan, microfinance institutions, Kosovo