Microfinance for Entrepreneurial Development: Study of Women’s Group Enterprise Development in India
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Microfinance programmes worldwide are considered as one of the most effective tools to fight against poverty through financial and social inclusion. A wide range of studies acknowledges that microfinance is a successful mechanism to reach microentrepreneurs at the bottom of the pyramid, particularly women who are more vulnerable to many of the socio-economic, political, cultural, and environmental shocks and risks. Therefore, building their livelihood in a more sustainable way will help themselves as well as their household. In this context, we explore the role played by MFI in enterprise development and finance as well as its impact on income and employment of female entrepreneurs in rural India. The analysis draws on a case study of SKDRDP, one of the largest non-governmental (not-for-profit) MFI based in India. Specifically, to understand the outcomes of microfinance and enterprise intervention, in-depth interviews with female members of self-help groups promoted by SKDRDP-SIRI microenterprise units were carried out. The finding suggests that SKDRDP’s microfinance innovations through group enterprises with an ‘integrated approach’ have contributed in improving employment and income of female entrepreneurs in rural areas.
KeywordsMicrofinance Microenterprise Self-help groups Women and India
JEL ClassificationG21 O12 O16 R23 J16
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