A Systematic Review of the Role of Microfinance in the Performance of Women-owned Small and Medium Enterprises in Sub-Saharan Africa

Abstract

This study employed Google Scholar and Scopus to systematically review the role of microfinance in enhancing the performance of women-owned small and medium-sized enterprises (SMEs) in Sub-Saharan Africa (SSA). It was guided by the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) 2020 protocol. The researcher identified, screened, assessed eligibility, and included 22 articles among the 90 articles that were consulted. The study applied thematic analysis, in which the studies were appraised, and the risk of bias was assessed to determine their inclusion. Studies in English, published between 2000 and 2025, with titles that included terms such as microfinance, SME performance, and SSA, were included in the analysis. The study excluded master's dissertations, PhD theses, and non-peer-reviewed publications. The analysis revealed that more studies were conducted in Nigeria and Kenya than in other SSA countries. Regression analysis, the most widely used data analysis technique, was used, while longitudinal and comparative studies, as well as individual country-level studies, were lacking. Moreover, access to microcredit was the most widely covered microfinance service by scholars. Most scholars have reported the positive influence of microfinance on women SMEs' performance and profitability, which are the most commonly used indicators of SME performance. The findings further revealed that higher interest rates, collateral requirements, and a lack of gender-anchored, microfinance-sensitive policies limit microfinance's role in improving the performance of women-led SMEs. Policymakers should design policies that address microfinance barriers to improve the performance of women’s SMEs.

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