Alleviating Poverty Through ‘Women of Will’ Interest-Free Microcredit and Mentoring Model in Malaysia

Abstract

Microenterprise development has been lauded for its capacity to empower socially marginalised women and alleviate poverty. However, the high cost of microcredit due to the relatively high-interest rate charged by institutions poses a debt trap to microenterprises. The study presents a successful case of a private sector-non-governmental organisation partnership to provide interest-free microcredit embedded in a flexible training and mentoring program by Women of Will. The study uses quantitative and qualitative methods to measure the impact of such microcredit and mentoring models on women’s empowerment and entrepreneurial growth, analysing what works and why. The growing importance of environmental, social and governance (ESG) suggests that corporate support for these initiatives has become increasingly sustainable, challenging neoliberal assumptions concerning the inevitable cost of microcredit. The case study draws on a realist approach to inform evidence-based policy by shedding light on the interactions and processes that influence the outcomes.