Do Islamic Microfinance Products Enhance the Microenterprise’s Development in Mauritania?

Abstract

This study investigates the impact of using Islamic microfinance products on the microenterprise’s development in Nouakchott-Mauritania and tests the moderator effect of gender. The data is collected from 381 beneficiaries of PROCAPEC-Nouakchott through a questionnaire. Structural equation modeling is utilized to test the hypothesis. The results show that the usage of Islamic microfinance products has a positive impact on microenterprises. Nonetheless, gender has no moderator effect in the model. Based on these findings, policymakers and managers of Islamic microfinance institutions are highly recommended to ease the usage of Islamic microfinance products for micro- entrepreneurs to increase their productivity and financial independence.