Microfinance And Its Role In Promoting Entrepreneurship And Economic Growth: A Systematic Literature Review

Abstract

This article presents a systematic literature review (SLR) on microfinance and its role in supporting entrepreneurship and fostering economic growth. The study focuses on research published between 2020 and 2025, with 31 carefully selected articles sourced from the Web of Science database. A bibliometric and thematic analysis, conducted using Biblioshiny, was employed to identify key research trends, influential contributions, and emerging gaps in the field. The findings indicate that microfinance has evolved beyond providing basic credit, now serving as a strategic tool for poverty alleviation, gender empowerment, and entrepreneurial development. Notably, the analysis highlights its impact on women entrepreneurs, self-employment, and household welfare. Despite growing interest, areas such as venture sustainability, innovation, and institutional influence remain underexplored. This study contributes to the literature by mapping the intellectual structure of microfinance research and offers valuable insights for scholars, practitioners, and policymakers seeking to leverage microfinance for inclusive and sustainable development.

Keywords: Microfinance, Entrepreneurship, Economic Growth