In this significant work, Professor Dr. Abul Hasan M. Sadeq provides a rigorous dual-layered analysis—both theoretical and empirical—of how microfinance acts as a catalyst for socio-economic transformation. He argues that conventional microfinance often fails by focusing purely on debt-servicing, whereas an Islamic Inclusive approach creates a holistic ecosystem for the poor.

Key Research Pillars:

• Theory of Change: Linking micro-level credit to macro-level development through the mobilization of unused human capital at the grassroots level.
• Institutional Synergy: Proposing that microfinance institutions (MFIs) should integrate Zakat and Waqf to lower costs for borrowers and provide a safety net that protects against business failure.
• Sustainable Practice: Moving from high-interest conventional loans to interest-free Qard al-Hasan and risk-sharing Mudarabah models to ensure that the "bottom of the pyramid" is not trapped in permanent debt.
• Empowerment Metrics: Critiquing existing practices and emphasizing that true development is measured by the transition of a borrower into a self-sufficient entrepreneur (from "Zakat-receiver" to "Zakat-payer").

The paper concludes that microfinance is a powerful tool for economic justice when it is ethical, inclusive, and supported by a robust institutional framework that values human welfare over institutional profit.

Core Concepts: Microfinance Theory, Poverty Alleviation, Inclusive Islamic Finance, Sustainable Development, Grassroots Entrepreneurship, AUB.