The traditional literature implies that women are empowered when they can exercise choices and are aware of alternatives, microfinance being one of the most important catalysts. This research attempts to understand the impact of microfi nance on women empowerment through a case study in Tamil Nadu. It is found that even though women have experienced an increase in income and consumption, they have very little control over resources, assets and do not participate equally in major household decisions. However, they have significant infl uence on the choices that their children make. The research fi nds that the real bottlenecks are the hierarchical nature of society, the lack of entrepreneurial talent and risk-taking ability in these women.
