An Islamic microfinance business model in Bangladesh: Its role in alleviation of poverty and socio-economic well-being of women

Purpose: The main purpose of this study is two-fold: first, it aims to confirm or disapprove a positive relationship between Islamic microfinance and the socio-economic welfare of women and, second, it aims to explore the perspective in which Islamic microfinance packages function in Bangladesh and the system of their performance can be enhanced. Design/methodology/approach: Based on structured questionnaires’ survey, this study addressed two research questions: What should be anticipated from the programmes of Islamic microfinance on the well-being of beneficiaries and under what circumstances would such programmes be more useful? Findings: The main result of this study shows that growth in women’s revenue and resources played an important role in improving women’s financial freedom and sense of self-possession. A significant policy endorsement in this study is that it is essential to redirect Islamic microfinance to spread in the developmental activities which will drive to contribute towards the well-being of the recipients in the long run. Originality/value: Examination of the Rural Development Scheme of Islami Bank Bangladesh is undertaken, aiming to critically review their Islamic microfinance programme in the matter of fighting poverty in Bangladesh and to suggest to diversify the Islamic microfinance scheme to spread in the developmental activities which will drive to contribute towards the well-being of the recipients in the long run.