Leveraging Microfinance to Empower Small Enterprises: Pathways to Sustainable Financial Inclusion

Abstract

Micro finance plays an important role towards sustainable financial inclusion among the small business entrepreneurs. It brings sustainable developments for the economic growth through providing support to the traditional businesses suitable for the geographical region. Micro finance enhances growth and paves the way for development of small business based on financial literacy of borrowers, income generating activates and diversification of loan products and social capital and community participation. Financial inclusion among the marginalised business owners is possible through access to microfinance, loan affordability including rate of interest and terms, availability of saving facilities, Access to insurance products and patriation in self-help groups or cooperatives and digital payment adoption. The challenges for integrating microfinance services are faced through low financial literacy among clients, credit risk and loan defaults, Regulatory and Compliance constraints and inadequate technology infrastructure and overlapping borrowing from multiple leaders. The study is bases on deductive principle, descriptive in nature and convenient sampling method is adopted , google questionnaire is distributed to 346 respondents among the state of Karnataka, and  Regression analysis is executed to identify the influencing factors.

In over all the study concludes that micro finance is empowering small business entrepreneurs for sustainable financial inclusions.