The Role of Waqf in Enhancing the Financial Inclusion of Women Entrepreneurs in Developing Countries

Abstract

Purpose: To accelerate modern micro-enterprises especially for women in developing countries, waqf can bridge the gap in the financial exclusion of women in entrepreneurship activities. The goal of this research is to identify the extent to which financial inclusion can enhance women’s economic empowerment in developing countries through waqf. Methodology: This study used a desk-based review of the literature to gain insight into the concept of the research variables. Findings: The paper revealed that property waqf, cash waqf, and corporate waqf can influence women’s economic empowerment through the development of physical capital, financial capital, and human capital. Significance: This paper reviewed the extant literature to provide a research framework that will accelerate women entrepreneurship, enhance Islamic wealth management and financial inclusion of women in Muslim societies. Theoretically, this study has contributed to the body of knowledge in Islamic finance, women empowerment and entrepreneurship development. Limitations: This study only focused to the body of knowledge in women empowerment and entrepreneurship development in developing countries. Practical Implications: Practically, access to the financial system will be improved by increasing the access of small businesswomen entrepreneurs, resulting in an increase in asset ownership, wealth creation, and serving as a catalyst for larger economic empowerment. Women’s entrepreneurship in can be improved with adequate knowledge of waqf instruments, conscious planning, and implementation by relevant stakeholders.

Financial Inclusion and Economic Empowerment

“…Financial inclusion has been identified as a driver of economic growth in various countries, including Nigeria (Uzoma et al, 2022). Furthermore, the literature suggests that financial inclusion can enhance women's economic empowerment through mechanisms such as waqf in developing countries (Bello, 2022). Additionally, financial inclusion has been found to strengthen economic empowerment and active participation in the financial system for various groups, including youth and women .…”

“…Akhter & Kun (2020) demonstrate how microcredit initiatives enhance rural women's control over financial assets in Bangladesh. Bello (2022) investigates the role of financial inclusion in improving women's economic empowerment through waqf in developing countries.…”