Impact of Microlending on Women’s Economic Empowerment in Jordan

The primary objective of research is to assess the impact of micro-lending on women’s economic empowerment in Jordan. The Microfinance Theory of Change (TOC) comprises three levels: the microloan uptake at the input or intervention level, the usage of this loan at the output level, and the impact on women’s employment and formal financial inclusion at the outcome level. 
The impact on the outcome level can be defined in terms of women’s empowerment and financial inclusion as follows: 
Women’s empowerment: The USAID Gender Equality and Women’s Empowerment Policy defines women’s empowerment as ‘the state in which women have the ability to act freely in society, exercise their rights equally to that of men, and fulfill their potential as equal members of society, such as to determine their life outcomes, assume leadership roles, and influence decision-making in households, communities, and societies.’  Women’s economic empowerment is also by the International Centre for Research on Women as ‘a woman is economically empowered when she has both the ability to succeed and advance economically and the power to make and act on economic decisions. To succeed and advance economically, women need the skills and resources to compete in markets, as well as fair and equal access to economic institutions. To have the power and agency to benefit from economic activities, women need to have the ability to make and act on decisions and control resources and profits.’ 
Financial inclusion: refers to individuals having (i.e., account ownership) or using financial services provided by a third party (but not provided by family/friends). Formal financial inclusion refers to individuals having or using financial services provided by institutions which are regulated/supervised. Informal financial inclusion refers to individuals having or using financial services provided by providers which are not regulated or supervised.