Today, money is the measure of success in many areas, influencing the way of assessing personal efficiency and well-being. Thus, it becomes increasingly more important to understand how to manage finances – on both micro- and macro-level. Various studies are interested the differences between men and women in their money-related attitudes, creating a new field of research. For example, Bahovec et al.’s (2017) study suggests that “gender and financial literacy are significant determinants of individual financial performance” (p. 1) Moreover, cultural background, specific countries’ economic conditions, and the history of gender-related rights must be taken into account when speaking about how men or women manage their finances.
Women in terms of attitudes towards money are very different from men, multiple studies say. There are many questions related to the issue, like: how much do women take care of their finances on their own, how do they invest, what level of knowledge do they have about private savings? The book Multiple Meanings of Money: How Women See Microfinances by Smita Premchander, V. Prameela, M. Chidambaranathan & L. Jeyaseelan (2009) explores the implications behind the female approach to managing money. This paper presents a review of this book and how it views women in context of operating microfinances.
How the Book Defines the Microfinance in Gender-Related Perspective
First of all, Premchander et al. (2009) define the multiple meanings of money and relate them to the gender and sociocultural aspects of the issue, providing a strong theoretical background. By giving a more varied understanding of the broad definition of “money,” the authors are able to cover more aspects of their research questions. Additionally, it introduces the gender implications behind operating microfinances and money-related specifics of Indian society to the reader. The topic of poverty in India and what role microfinances play in the country offer more statistical and factual insight into the overall narrative.
Money makes women significant by giving them a strong position, especially in comparison to men, as gender stereotypes remain an issue even in progressive countries. Society is always more willing to accept people with money, thus, it makes the ability to effectively manage finances a prerequisite of success. The book outlines the specific methods women use to control and manage microfinance, both individually and in groups. Studies found that women, in general, are more responsible with their money than men, and are more likely to generate a significant capital. According to Rossi et al. (2017), “women offer different points of view, strategies and leadership styles than traditional male styles” (p. 47). However, there are still women who, instead of taking their economically strong position as success and being proud of it, feel guilty. They often feel as if they climbed into men’s sphere of responsibility, to which they have no right. This belief may prevent them from being more confident with corporate or even their own finances.
Cultural and Societal Aspects of Women Microfinance Operation
Only at the beginning of the 20th century did women gain the right to open a bank account. In less than a century, women have proven that they are perfectly able to achieve wealth on their own. Mia et al. (2022) state that “a greater female presence in the workforce at all hierarchical levels could enhance the financial performance of microfinance institutions thanks to women’s tougher commitments and better managing capacity” (p. 1). Gudjonsson et al. (2020) supply that “higher proportion of female managers and female loan officers improve financial performance in microfinance” (p. 83). Their average income is higher than that of men, and there are fewer bankruptcies among women in the business world. However, women are more likely to work in industries that are characterized by low productivity, and therefore lower wages. The book offers case studies and real life stories to evidence the gender disparities and support the claims with factual and anecdotal evidence. For example, authors provide their exploration of a specific case of an Indian community microfinance project, offering commentary on methodology behind it.
There are concrete reasons as to why women might seem less efficient in managing microfinance than men to society. The book takes a feminist approach in trying to explain the specifics behind this issue. For example, a lot of women do not know about the earnings of their partners, especially if they are male, or how they manages money. In Indian patriarchal society, men almost always take care of investments in family setting, and the absolute majority of women have to rely on men for their finances. These men are not always only husbands: it can be a father, brother, son – any male relative. Moreover, most women, when entering into marriage, are guided by rules of legal law, which generally infringe on their rights.
The vast majority of women save not to multiply, but to make large purchases for themselves or their children, as it is them who have to manage household and general family savings. Thus, while women’s capitals are wasted, men are able to increase theirs without the need to impose on family finances. Here, the book defines the main reason behind the differences in the male and female approach to money. The authors emphasize how women are guided by the needs of the family in their microfinance managing. Women are forced into maintaining the well-being of their household at the expense of their self-actualization. Meanwhile, men are able to reinstate their status with the help of the money they earn.
The book explores the strategies that women use to operate their money, what influences their decisions, and how they work in a groups settings. Premchander et al. (2009) also review specific learning patterns women tend to adapt in relation to microfinance, introducing the perspectives of individuals and groups to provide comparative context. Buvinić and O’Donnel (2019) provide support in that area, stating that “specific gender-related design features of financial services and training programs can yield more positive economic outcomes for women by helping them overcome gender-related constraints” (p. 309). The authors apply feminist approach in their research, vouching for the empowerment and emancipation of women as the most effective and equality-driven way of social progress.
Conclusion
This book is a fascinating read that offers a strong and factually supported narrative on such a particularly complex topic of how women see and operate microfinance. By providing great cultural, historical, and social context first, the authors establish the atmosphere of the importance of the issue and how to approach it. Evidence are presented in form of detailed case studies that offer not only individual perspective, but also describe the experiences of self-help groups. The authors also provide a well-designed methodology of operating microfinance which can be used as learning material and reference for further research. Moreover, the book facilitates a more active approach towards microfinance, as the authors emphasize with their evidence that it can support social change and positively affect women both in India and around the world.
References
Bahovec, V., Barbić, D., & Palić, I. (2017). The regression analysis of individual financial performance: Evidence from Croatia. Business Systems Research Journal, 8(2), 1-13.
Buvinić, M., & O’Donnell, M. (2019). Gender Matters in Economic Empowerment Interventions: A Research Review. The World Bank Research Observer, 34(2), 309-346.
Gudjonsson, S., Kristinsson, K., Gylfason, H. F., & Minelgaite, I. (2020). Female advantage? Management and financial performance in microfinance. Business: Theory and Practice, 21(1), 83-91.
Mia, M. A., Dalla Pellegrina, L., & Wong, W. (2022). Female participation and financial performance of Microfinance Institutions: Evidence from transition economies. Development Policy Review.
Premchander, S., Prameela, V., Chidambaranathan, M., & Jeyaseelan, L. (2009). Multiple meanings of money: How women see microfinance.
Rossi, M., Galasso, S., & Capasso, A. (2017). Women Do it Better: An Investigation on the Association between Gender Diversity In Board of Directors and the Financial Performance. International Journal of Economics and Financial Issues, 7(6), 41-50.