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Microfinance has been accepted as an efficient mechanism for promoting women's
entrepreneurship particularly in underdeveloped economies. Generally, female entrepreneurs in
Afghanistan are handicapped owing to a lack of resources and afraid of the inability in
arranging and operating their businesses. Women entrepreneurs in Afghanistan are
handicapped in the matter of organizing and running their businesses due to the absence of
capital, fear of failure and social restrictions. With the efforts of state-owned and private
microcredit institutions, many Afghan women are now establishing new businesses with the ideas
to start micro and small enterprises. The purpose of this study is to explore the effect of
Microfinance on Women Entrepreneurs in Afghanistan. This study is based on secondary data
sources that are collected from the publications and reports of Banks, the Afghan Microfinance
Association (AMA), and Microfinance Support Investment for Afghanistan (MISFA) and other
Microfinance Institutions. The findings of this study show that microfinance has a favorable
impact on entrepreneurship development in Afghanistan. Furthermore, the result indicates there
has been a significant improvement

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