The Scope of Microfinance in The Indian Context-A Study

“THE SCOPE OF MICROFINANCE IN
THE INDIAN CONTEXT- A STUDY”
Project Report Submitted in Partial

Fulfillment of the requirement for the
Award of Degree of
MASTER OF BUSINESS
ADMINISTRATION (MBA)
Submitted by
SUNNY PRASAD SHAW
Rag N o: 1708001184
Under the guidance of

TAPOSH KUMAR PAUL
Guide Reg No: MBAWB0033
SIKKIM MANIPAL UNIVERSITY (SMU)

DIRECTORATE OF DISTANCE EDUCATION
Sept, 2019
SUNNY PRASAD SHAW Page 1

Acknowledgements
“No good work flows without the help from Faculty Members
Industrial Professionals, Colleagues, Organization and Friends”
The satisfaction and euphoria that accompanied the successful completion of any task would be
incomplete without the mention of the people who made it possible, whose constant guidance and
encouragement crowned out effort with success. I take this opportunity to express our deep sense of
gratitude and respect to my guide DR. TAPOSH KUMAR PAUL ASSISTANT PROFESSOR in
Commerce, GOUR MOHAN SACHIN MONDAL MAHAVIDYALAYA, MANDIR BAJAAR,
SOUTH 24 PARGANAS-743336 WEST BENGAL (INDIA) for the valuable guidance,
I also want to thank my colleagues, organization and seniors for providing me with essential facilities
for completing and presenting this project. I am greatly indebted to their help, which has been of
immense value and has played a major role in bringing this to a successful completion. I would like to
thank our family and friends for their constant support and encouragement throughout our project.

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INDIAN CONTEXT- A STUDY” is the bonafide work of “SUNNY PRASAD
SHAW” who carried out the project work under my supervision in the partial fulfillment
of the requirements for the award of the MBA degree.
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TAPOSH KUMAR PAUL

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MBAWB0033
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DECLARATION BY THE STUDENT
I SUNNY PRASAD SHAW bearing Reg. No 1708001184 hereby declare that this project
report entitled “THE SCOPE OF MICROFINANCE IN THE INDIAN CONTEXT- A STUDY” has
Been prepared by me towards the partial fulfillment of the requirement for the award of
the Master of Business Administration (MBA) Degree under the guidance of TAPOSH
KUMAR PAUL.
I also declare that this project report is my original work and has not been previously
submitted for the award of any Degree, Diploma, Fellowship, or other similar titles.
SUNNY PRASAD SHAW

Place: KOLKATA (Name (in capitals) and signature of candidate)
Date: 22 Sept. 2019 Reg. No. 1708001184 .

TABLE OF CONTENTS
Chapter No. Title Page No.
1. Introduction of the Study
1.1 Introduction 7
1.2 Microfinance Definition 7
1.3 Concept and Features of Micro-finance 8
1.4 Microfinance Approach 9
2. Objectives of the Study 10
3. Literature Review 12
4. Research Methodology
4.1 Introduction of Research Methodology 23
4.2 Type of Research Used 23
4.3 Method of Data Collection 23
5. Analysis & Interpretation of Data
5.1 Objective 1 26
5.2 Objective 2 29
5.3 Objective 3 33
5.4 Objective 4 35
6. Suggestion/ Recommendation 40
7. Limitation & Scope of Future Research
7.1 Limitation 42
7.2 Scope of Future Research 42
8. Conclusion 44
9. Bibilography 46

CHAPTER 1
{INTRODUCTION OF THE STUDY}

1.1 Introduction:
Microfinance is defined as any activity that includes the provision of financial services such as credit,
savings, and insurance to low income individuals which fall just above the nationally defined poverty
line, and poor individuals which fall below that poverty line, with the goal of creating social value. The
creation of social value includes poverty alleviation and the broader impact of improving livelihood
opportunities through the provision of capital for micro enterprise, and insurance and savings for risk
mitigation and consumption smoothing. A large variety of sectors provide microfinance in India, using a
range of microfinance delivery methods. Since the ICICI Bank in India, various actors have endeavored
to provide access to financial services to the poor in creative ways. Governments also have piloted
national programs, NGOs have undertaken the activity of raising donor funds for on-lending, and some
banks have partnered with public organizations or made small inroads themselves in providing such
services. This has resulted in a rather broad definition of microfinance as any activity that targets poor
and low-income individuals for the provision of financial services. The range of activities undertaken in
microfinance include group lending, individual lending, the provision of savings and insurance, capacity
building, and agricultural business development services. Whatever the form of activity however, the
overarching goal that unifies all actors in the provision of microfinance is the creation of social value.
1.2 Microfinance Definition
According to International Labor Organization (ILO), “Microfinance is an economic development

approach that involves providing financial services through institutions to low income clients”.
In India, Microfinance has been defined by “The National Microfinance Taskforce, 1999” as “provision
of thrift, credit and other financial services and products of very small amounts to the poor in rural,
semi-urban or urban areas for enabling them to raise their income levels and improve living
standards”.
"The poor stay poor, not because they are lazy but because they have no access to capital."
The dictionary meaning of „finance‟ is management of money. The management of money denotes
acquiring & using money. Micro Finance is buzzing word, used when financing for micro entrepreneurs.
Concept of micro finance is emerged in need of meeting special goal to empower under- privileged class

of society, women, and poor, downtrodden by natural reasons or men made; caste, creed, religion or
otherwise. The principles of Micro Finance are founded on the philosophy of cooperation and its central
values of equality, equity and mutual self-help. At the heart of these principles are the concept of human
development and the brotherhood of man expressed through people working together to achieve a better
life for themselves and their children.
Traditionally micro finance was focused on providing a very standardized credit product. The poor, just
like anyone else, (in fact need like thirst) need a diverse range of financial instruments to be able to
build assets, stabilize consumption and protect themselves against risks. Thus, we see a broadening of
the concept of micro finance--- our current challenge is to find efficient and reliable ways of providing a
richer menu of micro finance products. Micro Finance is not merely extending credit, but extending
credit to those who require most for their and family’s survival. It cannot be measured in term of
quantity, but due weightage to quality measurement. How credit availed is used to survive and grow
with limited means.
1.3 Concept and Features of Micro-finance:
1. It is a tool for empowerment of the poorest.

2. Delivery is normally through Self Help Groups (SHGs).
3. It is essentially for promoting self-employment, generally used for:
(a) Direct income generation
(b) Rearrangement of assets and liabilities for the household to participate in future
opportunities and
(c) Consumption smoothing.
4. It is not just a financing system, but a tool for social change, especially for women.
5. Because micro credit is aimed at the poorest, micro-finance lending technology needs to
mimic the informal lenders rather than the formal sector lending. It has to:
(a) Provide for seasonality
(b) Allow repayment flexibility
(c) Fix a ceiling on loan sizes.

1.4 Microfinance Approach: It’s based on certain proven truths which are not always recognized.
These are:
1. That the poor are bankable; successful initiatives in micro finance demonstrate that there need
not be a tradeoff between reaching the poor and profitability - micro finance constitutes a
statement that the borrowers are not „weaker sections‟ in need of charity, but can be treated as
responsible people on business terms for mutual profit .
2. That almost all poor households need to save, have the inherent capacity to save small
amounts regularly and are willing to save provided they are motivated and facilitated to do so.
3. That easy access to credit is more important than cheap subsidized credit which involves
lengthy bureaucratic procedures - (some institutions in India are already lending to groups or
SHGs at higher rates - this may prevent the groups from enjoying a sufficient margin and
rapidly accumulating their own funds, but members continue to borrow at these high rates,
even those who can borrow individually from banks).
4. 'Peer pressure' in groups helps in improving recoveries.

CHAPTER 2
{OBJECTIVE OF THE STUDY}

2. OBJECTIVES OF THE STUDY:
 To study the impact of micro finance in empowering the social economic status of women and
developing of social entrepreneurship.
 To know about relationship between SHG‟s members, micro finance banks and entrepreneur’s
women.
 To clarify the limitation of microfinance programmers as the tool for women’s empowerment
and the type of support service necessary to maximize the contribution of microfinance service.
 To study potential hurdles in the development of women entrepreneurship.

CHAPTER 3
{LITERATURE REVIEW}

3. LITRATURE REVIEW:
Mohammed Anisur Rahaman (2007)
Has examined that about microfinance and to investigate the impact of microfinance on the poor people
of the society with the main focus on Bangladesh. We mainly concise our thesis through client’s (the
poor people, who borrowed loan from microfinance institutions) perspective and build up our research
based on it. Therefore, the objective of this study is to show how microfinance works, by using group
lending methodology for reducing poverty and how it affects the living standard (income, saving etc.) of
the poor people in Bangladesh. Microfinance has the positive impact on the standard of living of the
poor people and on their life style. It has not only helped the poor people to come over the poverty line,
but has also helped them to empower themselves.
Susy Cheston (2002)
Has examined that Microfinance has the potential to have a powerful impact on women’s
empowerment. Although microfinance is not always empowering for all women, most women do
experience some degree of empowerment as a result. Empowerment is a complex process of change that
is experienced by all individuals somewhat differently. Women need, want, and profit from credit and
other financial services. Strengthening women’s financial base and economic contribution to their
families and communities plays a role in empowering them. Product design and program planning
should take women’s needs and assets into account. By building an awareness of the potential impacts
of their programs, MFIs can design products, services, and service delivery mechanisms that mitigate
negative impacts and enhance positive ones.
Linda Mayoux (Feb 2006)
Has examined that Micro-finance programmes not only give women and men access to savings and
credit, but reach millions of people worldwide bringing them together regularly in organized groups.
Through their contribution to women’s ability to earn an income, micro-finance programmes can
potentially initiate a series of „virtuous spirals‟ of economic empowerment, increased well-being for
women and their families and wider social and political empowerment Banks generally use individual
rather than group-based lending and may not have scope for introducing non-financial services. This
means that they cannot be expected to have the type of the focused empowerment strategies which
NGOs have
EoinWrenn (2005)
Has examined that microfinance creates access to productive capital for the poor, which together with
human capital, addressed through education and training, and social capital, achieved through local
organization building, enables people to move out of poverty (1999). By providing material capital to a

Poor person, their sense of dignity is strengthened and this can help to empower the person to participate
in the economy and society. The impact of microfinance on poverty alleviation is a keenly debated issue
as we have seen and it is generally accepted that it is not a silver bullet, it has not lived up in general to
its expectation (Hulmeand Mosley, 1996). However, when implemented and managed carefully, and
when services are designed to meet the needs of clients, microfinance has had positive impacts, not just
on clients, but on their families and on the wider community.
Cheston& Kuhn (2004)
Has examined that in their study concluded that micro-finance programmes have been very successful in
reaching women. This gives micro-finance institutions an extraordinary opportunity to act intentionally
to empower poor women and to minimize the potentially negative impacts some women experiences.
We also found increased respect from and better relationships with extended family and in-laws. While
there have been some reports of increased domestic violence, Hashemi and Schuler found a reduced
incidence of violence among women who were members of credit organizations than among the general
population.
Dr. JyotishPrakashBasu (2006)
Has examined that the two basic research questions. First, the paper tries to attempt to study how a
woman’s tendency to invest in safer investment projects can be linked to her desire to raise her
bargaining position in the households. Second, in addition to the project choice, women empowerment
is examined with respect to control of savings, control of income, control over loans, control over
purchasing capacity and family planning in some sample household in Hooghly district of West Bengal.
The empowerment depends on the choice of investment of project. The choice of safe project leads to
more empower of women than the choice of uncertain projects. The Commercial Banks and Regional
Rural banks played a crucial role in the formation of groups in the SHGs -Bank Linkage Program in
Andhra Pradesh whiles the Cooperative Banks in West Bengal.
Chintamani Prasad Patnaik (March 2012)
Has examined that microfinance seems to have generated a view that microfinance development could
provide an answer to the problems of rural financial market development. While the development of
microfinance is undoubtedly critical in improving access to finance for the unserved and underserved
poor and low-income households and their enterprises, it is inadequate to address issues of rural
financial market development. It is envisaged that self-help groups will play a vital role in such strategy.
But there is a need for structural orientation of the groups to suit the requirements of new business.
Microcredit movement has to be viewed from a long-term perspective under SHG
framework, which underlines the need for a deliberate policy implication in favour of assurance in terms
of technology back-up, product market and human resource development.

Hunt, J &Kasynathan (2002)
Has examined that poor women and men in the developing world need access to microfinance and
donors should continue to facilitate this. Research suggests that equity and efficiency arguments for
targeting credit to women remain powerful: the whole family is more likely to benefit from credit
targeted to women, where they control income, than when it is targeted to men. Microfinance must also
be re-assessed in the light of evidence that the poorest families and the poorest women are not able to
access credit. A range of microfinance packages is required to meet the needs of the poorest, both
women and men. Donors need to revisit arguments about the sustainability of microfinance
programmes. Financial sustainability must be balanced against the need to ensure that some credit
packages are accessible to the poorest.
R.Prabhavathy (2012)
Has examined that collective strategies beyond micro-credit to increase the endowments of the
poor/women enhance their exchange outcomes the family, markets, state and community, and socio-
cultural and political spaces are required for both poverty reduction and women empowerment. Even
though there were many benefits due to micro-finance towards women empowerment and poverty
alleviation, there are some concerns. First, these are dependent on the programmatic and institutional
strategies adopted by the intermediaries, second, there are limits to how far micro-credit interventions
can alone reach the ultra-poor, third the extent of positive results varies across household headship, caste
and religion and fourth the regulation of both public and private infrastructure in the context of LPG to
sustain the benefits of social service providers.
Reginald Indon (2007)
Has examined that informal businesses represent a very large cross-section of economic enterprises
operating in the country. Informal businesses may be classified as the livelihood/ survival type or the
entrepreneurial/ growth-oriented type. Livelihood enterprises are those which show very limited
potential for growth in both income and employment generation. There are existing policies, program
and services that directly/ indirectly cover informal. Variety of support programs, services and
information are currently being offered by different institutions. These programs and support services
fail to reach or remain inaccessible to informal business operators and owners. This is borne out of and
perpetuated by lopsided economic policies and poor governance that inadvertently encumber informal
businesses from accessing mainstream resources and services.
Marguerite S. Robinson (1995)
Has examined that HIID's role in the formulation of the initial hypotheses and HIID's contributions in
planning and coordinating the underlying research, advising on the policies and implementation
strategies that put concept into practice, analyzing the results, and disseminating the findings. Drawing

on work in Asia, Africa, and Latin America, the paper analyses the paradigm shift in microfinance from
government and donor-funded subsidized credit to sustainable financial intermediation. This shift has
occurred because of the work of many people in many countries. This paper, however, is limited to
HIID's contribution. The policy implications of the 'new microfinance' for governments, donors, banks,
and NGOs are explored. HIID is advising BRI on its program for international visitors. In addition,
HIID is analyzing and teaching - in universities, financial institutions, donor agencies, bank
superintendence’s, and NGOs - the principles and the results of the new microfinance paradigm.
Pillai (1995)
Has examined that the emergence of liberalization and globalization in early 1990's aggravated the
problem of women workers in unorganized sectors from bad to worse as most of the women who were
engaged in various self-employment activities have lost their livelihood. Microfinance is emerging as a
powerful instrument for poverty alleviation in the new economy. In India, Microfinance scene is
dominated by Self Help Group (SHGs)-Bank Linkage Programme as a cost effective mechanism for
providing financial services to the "Unreached Poor" which has been successful not only in meeting
financial needs of the rural poor women but also in strengthening collective self-help capacities of the
poor leading to their empowerment. Micro finance is necessary to overcome exploitation, create
confidence for economic self-reliance of the rural poor, particularly among rural women who are mostly
invisible in the social structure. Micro finance can contribute to solving the problems of inadequate
housing and urban services as an integral part of poverty alleviation programmes. The challenge lies in
finding the level of flexibility in the credit instrument that could make it match the multiple credit
requirements of the low income borrower without imposing unbearably high cost of monitoring its end
use upon the lenders.
Crabb, P. (2008)
Has examined that the relationship between the success of microfinance institutions and the degree of
economic freedom in their host countries. Many microfinance institutions are currently not self-
sustaining and research suggests that the economic environment in which the institution operates is an
important factor in the ability of the institution to reach this goal, furthering its mission of outreach to
the poor. The sustainability of the micro lending institutions is analyzed here using a large cross- section
of institutions and countries. The results show that microfinance institutions operate primarily in
countries with a relatively low degree of overall economic freedom and that various economic policy
factors are important to sustainability.
Fehr, D. and G. Hishigsuren. (2006)
Has examined that microfinance institutions (MFIs) provide financial services to the poorest
households. To date, funding of MFI activities has come primarily from outright donor grants,

government subsidies, and often debt capital, including debt with non-market terms favorable to the
MFI. These traditional sources of MFI financing may not be sufficient to allow MFIs to provide
maximum services. There is a subset of the pool of mainstream equity investors who would consider
investing in MFI opportunities, even knowing that they would not expect to earn the full economic rate
of return that such investments would otherwise require. However, as part of their investment evaluation
process, these investors would ask: What would the market determine required expected rate of return
for my MFI investment be? What return on investment (ROI) do I expect to earn on my MFI
investment? Is the difference in the above two returns acceptable given my level of social motivation?
How will I "monetize" my investment and when? The purpose of this article is to employ modern
corporate finance techniques to address these questions.
Demirguc-Kunt, A. and Martinez, P.M.S. (2005)
Has examined that this paper (i) presents new indicators of banking sector penetration across 99
countries, based on a survey of bank regulatory authorities, (ii) shows that these indicators predict
household and firm use of banking services, (iii) explores the association between the outreach
indicators and measures of financial, institutional, and infrastructure development across countries, and
(iv) Relates these banking outreach indicators to measures of firms „financing constraints. In particular,
we find that greater outreach is correlated with standard measures of financial development, as well as
with economic activity. Controlling for these factors, we find that better communication and transport
Infrastructure and better governance are also associated with greater outreach. Government ownership
of financial institutions translates into lower access, while more concentrated banking systems are
associated with greater outreach. Finally, firms in countries with higher branch and ATM penetration
and higher use of loan services report lower financing obstacles, thus linking banking sector outreach to
the alleviation of firms‟ financing constraints.
Srinivasan, Sunderasan (2007)
Has examined that micro banking facilities have helped large numbers of developing country nationals
by supporting the establishment and growth of microenterprises. And yet, the microfinance movement
has grown on the back of passive replication and needs to be revitalized with new product offerings and
innovative service delivery. Renewable Energy systems viz., solar home systems, biogas digesters, etc.,
serve to improve indoor air quality, provide superior light and extend working and study hours. Such
applications are not inherently income generating and returns on such investments accrue from cost
avoidance, but should qualify for micro funding, as such 'quality of life' investments, reflect borrower
maturity and simultaneously contribute to MFI sustainability.
Basu, P., Srivastava (2005)
Has examined that the current level and pattern of access to finance for India's rural poor and examines

some of the key microfinance approaches in India, taking a close look at the most dominant among
these, the Self Help Group (SHG) Bank Linkage initiative. It empirically analyzes the success with
which SHG Bank Linkage has been able to reach the poor, examines the reasons behind this, and the
lessons learned. The analysis in the paper draws heavily on a recent rural access to finance survey of
6,000 households in India, undertaken by the authors. The main findings and implications of the paper
are as follows: India's rural poor currently have very little access to finance from formal sources.
Microfinance approaches have tried to fill the gap. Among these, the growth of SHG Bank Linkage has
been particularly remarkable, but outreach remains modest in terms of the proportion of poor
households served. The paper recommends that, if SHG Bank Linkage is to be scaled-up to offer mass
access to finance for the rural poor, then much more attention will need to be paid towards: the
promotion of high quality SHGs that are sustainable, clear targeting of clients, and ensuring that banks
linked to SHGs price loans at cost-covering levels. At the same time, the paper argues that, in an
economy as vast and varied as India's, there is scope for diverse microfinance approaches to coexist.
Private sector micro financiers need to acquire greater professionalism, and the government, too, can
help by creating a flexible architecture for microfinance innovations, including through a more enabling
policy, legal and regulatory framework. Finally, the paper argues that, while microfinance can, at
minimum, serve as a quick way to deliver finance to the poor, the medium-term strategy to scale-up
access to finance for the poor should be to 'graduate' microfinance clients to formal financial
Institutions. The paper offers some suggestions on what it would take to reform these institutions with
an eye to improving access for the poor.
Robinson, M. (2001)
Has examined that the timing of this book is excellent it has few close substitutes in terms of its
sweeping overview of the terrain, and the revolution is now so advanced that the time is right for a
history, or at least a retrospective. As with any revolution, however, splits have emerged within the
movement. On one side are those who argue that the way forward is to require microfinance institutions
to meet the test of financial sustainability essentially, requiring these institutions to cover their costs,
even if this means that the very poorest of the poor remain under-served. Against this, the poverty
lending approach emphasizes the importance of outreach, especially to the very poorest borrowers, as a
poverty fighting approach.
Muhammad Yunus (1998)
Has examined that this approach to poverty reduction at the macro-level is inadequate. The primary
causes of poverty are not lack of human capital or lack of demand for labor. Lack of demand for labor is
only a symptom, not a cause, of poverty. Poverty is caused by our inadequate understanding of human
capabilities and by our failure to create enabling theoretical frameworks, concepts, institutions and

policies to support those capabilities. My main argument is that economics as we know it is not only
unhelpful in getting the poor out of poverty; it may even be a hindrance. In this paper, I would like to
explore those institutions that perpetuate poverty, share my experiences with an effective poverty
alleviation institution, and present my thoughts on the future of poverty alleviation. Before addressing
these points, however, I would like to provide a useful framework to define the concept of "the poor"
more concretely.
Ashta, A. & De Selva, R. (2009)
Hass examined that the relationship between microfinance and religion, and provides future research
directions in this area. Religious institutions often play a crucial role in establishing microfinance
systems, but interactions between microfinance and religion have received little attention of researchers.
Some of the topics addressed by articles reviewed in this paper include the impact of the Great Irish
Famine on Irish loan funds, indigenization within support groups for chronically ill Haitian women,
impact of religion on borrowing patterns of Jordanian micro-entrepreneurs, Islamic microfinance in
Pakistan and Indonesia, spirituality as an asset in a Christian initiative role of religious leaders in
identifying entrepreneurial talent, microfinance and charity in Thailand and the Philippines, and
extensive socio-economic studies in Bangladesh and India.
Ernest Aryeetey (2005)
Has examined that informal finance and microfinance suitable for financing growing small to medium
size enterprises (SMEs) in Sub-Saharan Africa? First, I present the characteristics of informal finance,
focusing on size, structure, and scope of activities. Informal finance has not been very attractive for the
private sector. Indeed, the informal sector has considerable experience and knowledge about dealing
with small borrowers, but there are significant limitations to what it can lend to growing
microbusinesses. Second, I discuss some recent trends in microfinance. While externally driven
microfinance projects have surfaced in Africa, their performance relative to small business finance has
not been as positive as in Asia and Latin America. Third, I introduce some possible steps toward a new
reform agenda that will make informal and microfinance relevant to private sector development,
including focusing on links among formal, semi-formal and informal finance and how these links can be
developed.
Yunus (2003)
Has examined that count 130 McMaster School for Advancing Humanity on women to spread the word
to their neighbors and friends about the success of these loans. The testimony is expected to convince
others to seek out Grameen for help. Yunus also encourages members to save some of their money in
case they fall on hard times, such as natural disasters, or to use this money for other opportunities. In
1977, Yunus founded Grameen Bank after working for six months to get a loan from the Janata Bank.

Yunus realized that having groups of people take out a loan was a better plan for success than giving
loans to individuals. He describes the process by which Grameen Bank lends money. Loan repayments
are to be made in very small amounts, and in the first project, Yunus chose a villager to be in charge of
collecting the repayments.
Monique Cohen (2002)
Has examined that the ideas presented in this paper are designed to direct the arena of discourse towards
a more holistic market driven or client focused microfinance agenda. Currently, the debate on market-
driven microfinance is primarily framed by the „problems‟ of competition and dropouts among
established MFIs. The solutions to the problems are defined in terms of more responsive products, the
creation of new products, and the restructuring of existing ones. Appropriate products will not only
benefit the operations of an institution they will also have a positive impact on the wellbeing of the
client, reducing the risk of borrowing and the poor’s vulnerability. In presenting current thinking on a
client-led agenda, this paper finds itself in a precarious position in the midst of this debate. Client-led
models are still in their infancy, and the fact that this topic is the theme of this special edition of the
Journal of Development Studies is itself an important milestone. When this author began to focus on
clients in microfinance six years ago, the notion that clients deserved a voice in the design and delivery
of services was dismissed out of hand.
Shannon Doocy, Dan Norell, ShimelesTeffera, and Gilbert Burnham (2005)
Has examined that Management decision making in MFIs is becoming increasingly tied to collecting
information about social performance. This paper examines the impact of participation in an Ethiopian
microfinance program on indicators of socioeconomic status including wealth, income, and home or
land ownership. A survey assessing these outcomes was conducted in May 2003 in two predominantly
rural sites in Southern Ethiopia and included 819 households. The article discusses management
decisions made as the result of survey findings about socioeconomic status and food security to increase
retention rates and to facilitate client savings. Additionally, the management was prompted to increase
the number of female clients and raise the proportion of female loan officers. This paper illustrates how
data from routine monitoring and evaluation can be linked to MFI management
Decision making, which ultimately results in providing better microfinance services. Household asset
data indicates that participation in the WISDOM microfinance program did not result in increased
household wealth. Significant differences in household income were not observed between participant
groups in either survey site and client status was not a significant predictor of income in univariate or
multivariate regression models.
John A. Brett. (2006)
Has examined that having borrowed money from a microfinance organization to start a small business,

many women in El Alto, Bolivia are unable to generate sufficient income to repay their loans and so
must draw upon household resources. Working from the women's experience and words, this article
explores the range of factors that condition and constrain their success as entrepreneurs. The central
theme is that while providing the poor access to credit is currently very popular in development circles,
the social and structural context within which some women operate so strongly constrains their
productive activity that they realize a net income loss at the household level instead of the promised
benefits of entrepreneurship. This paper explores the social and structural realities in which women seek
out and accept debt beyond their capacity to repay from the proceeds of their business enterprise. By
examining some of the "hidden costs" of microfinance participation, this paper argues for a shift from
evaluation on outcomes at the institutional level to outcomes at the household level to identify the forces
and factors that condition women's success as micro-entrepreneurs. While there has been much
discussion on the benefits of microcredit lending and increasing critique of it on both ideological and
substantive grounds, there have been few ethnographically informed studies on consequences to users.
Nidhiya Menon (2006)
Has examined that this paper studies the benefits of participation in micro-finance programs, where
benefits are measured in terms of the ability to smooth the effect of seasonal shocks that cause
consumption fluctuations. It is shown that although membership in these programs is an effective
instrument in combating inter-seasonal consumption differences, there is a threshold level of length of
participation beyond which benefits begins to diminish. Returns from membership are modeled using an
Euler equation approach. Fixed effects non-linear least squares estimation of parameters using data from
24 villages of the Grameen Bank suggests that returns to participation, as measured by the ability to
smooth seasonal shocks, begin to decline after approximately two years of membership. This implies
that membership alone no longer has a mitigating marginal effect on seasonal shocks to per capita
consumption after four years of participation. Such patterns suggest that the ability to smooth
consumption as a function of length of membership, need not accrue indefinitely in a linear fashion;
Reprinted by permission of Frank Cass & Co. Ltd.

CHAPTER 4
{RESEARCH METHODOLOGY}

4.1 INTRODUCTION OF RESEARCH METHODOLOGY:
Research methodology is a way to systematically solve the problem. It is a game plan for conducting
research. In this we describe various steps that are taken by the researcher.
“All progress is born of inquiry. Doubt is often better than overconfidence, for it leads to inquiry and
inquiry leads to invention.”
Research in a common parlance is a search for knowledge. Research is an art of scientific and
systematic investigation. Thus research comprises defining and redefining problems, formulating
hypothesis or suggested solutions; collecting, organizing and evaluating data, making deductions and
reaching conclusions. Research methodology is the arrangement of condition for collection and analysis
of data in a manner that aims to combine relevance to the research purpose with economy in procedure.
Research Methodology is the conceptual structure within which research is conducted. It constitutes the
blueprint for the collection measurement and analysis of the data.
Research methodology is a framework for the study and is used as a guide in collecting and analyzing
the data. It is a strategy specifying which approach will be used for gathering and analyzing the data. It
also includes time and cost budget since most studies are done under these two constraints. The research
methodology includes overall research design, the sampling procedure, the data collection method and
analysis procedure.
4.2 TYPE OF RESEARCH USED

4.2.1 Descriptive Research:
In the study descriptive research design has been used. As descriptive research design is the description
of state of affairs, as it exists at present. In this type of research the researcher has no control over the
variables; he can only report what has happened or what is happening
Descriptive research designs are those design which are concerned with describing the characteristics of
particular individual or of the group. In descriptive and diagnostic study the researcher must be able to
define clearly what he wants to measure and must find adequate method for measuring it.
4.3 METHOD OF DATA COLLECTION

After the research problem has been identified and selected the next step is to gather the requisite data.
While deciding about the method of data collection to be used for the researcher should keep in mind
two types of data i.e. primary and secondary.

TYPES OF DATA
PRIMARY SECONDRY
DATA DATA
4.3.1 Primary Data

The primary data are those, which are collected afresh and for the first time, and thus happened to be
original in character. We can obtain primary data either through observation or through direct
communication with respondent in one form or another or through personal interview.
PRIMARY DATA
OBSERVATION INTERVIEW
METHOD METHIOD QUETIONAIRE SCHEDULE
METHOD METHOD
4.3.2 Secondary Data

The secondary data on the other hand, are those which have already been collected by someone else
and which have already been passed through the statistical processes. When the researcher utilizes
secondary data then he has to look into various sources from where he can obtain them. For e.g. books,
magazine, newspaper, internet, publications and reports.
In this study data have been taken from various secondary sources like:
 Internet
 Books
 Magazines
 Newspapers
 Journals

CHAPTER 5
{ANALYSIS AND
INTERPRETATION OF DATA}

5. ANALYSIS AND INTERPRETATION OF DATA:
5.1 Objective 1:-To study the impact of micro finance in empowering the social
economic status of women and developing of social entrepreneurship.
Amount in Crore/ No. in Lakhs
Particular Year Total SHGs All Women SHGs % of Woman

Groups
No. Amount No. Amount No. Amount
SHG
2016-17 69.53 6198.71 53.10 4498.66 76.4 72.6
Savings
2017-18 74.62 7016.30 60.98 5298.65 81.7 75.5
with banks
as on 31st
March
Loan
2016-17 15.87 14453.3 12.94 12429.37 81.6 86
disbursed to
SHGs 2017-18 11.96 14547.73 10.17 12622.33 85 86.8
During the
year
Loan
2016-17 48.51 28038.28 38.98 23030.36 80.30 82.1
outstanding
against 2017-18 47.87 31221.17 39.84 26123.75 83.2 83.7
SHGs as
on
31st March
Table 5.1

Total No. of Loan disbursed:-
Particular 2016-17 2017-18
Total SHGs 15.87 11.96
All Women 12.94 10.17

SHGs
Table 5.2
18
16
14
12
10
8 2016-17
6 2017-18
4
2
0
Total SHGs All Women SHGs
Figure 5.1
Total Amount of loan disbursed:-
Particular 2016-17 2017-18

Total SHGs 6198.71 7016.30
All Women SHGs 4498.66 5298.65

Table 5.3
8000
7000
6000
5000
4000
2016-17
2017-18
3000
2000
1000
0
Total SHGs All Women SHGs
Figure 5.2
INTERPRETATION: - According to main objective to know the economic and

social development of women entrepreneurship. Above table show the economic
development of women. In 2016-17 loans disbursed amount to women is
12429.37crore and 2017-18 is 12622.33crore. In 2016-17 SHG Savings amount to
women is 4498.66crore and 2017-18 is 5298.65crore and in 2016-17 loan
outstanding amounts to women is 23030.36crore and 2017-18 is 26123.75crore. That
shows the economic development of women.

5.2 Objective 2:-To know about relationship between SHG‟s members, micro finance
banks and entrepreneur’s women.
Savings of SHGs with public sector commercial banks as on 31st March 2011
Amount Rs. Lakhs
Details of SHGs Saving Out Of Total SHGs-
Sr. linked with Banks Exclusive Women
Name of The Bank SHGs
No. No. No. of Savin No. No. of Savin
Of Membe g Of Membe g
SHG rs Amou SHG rs Amou
s nt s nt
Delhi
1 Allahabad Bank 30 320 14.00 30 320 14.00
2 Bank of Baroda 38 377 62.83 37 3685 60.96
3 5 7
3 Bank of India 35 552 6.73 35 552 6.73
4 Indian Bank 81 895 43.59 78 8675 38.39
5 6 9
5 Central Bank of 8 80 0.30 8 80 0.30
India
6 Syndicate Bank 19 173 2.58 16 165 2.54
7 Punjab National 76 760 108.4 70 7050 103.9
Bank 0 0 2 5 9
8 State Bank of India 75 901 31.00 75 9012 31.00
1 2 1
Table 5.4

Amount Rs. Lakhs
Out Of Total SHGs-
Details of SHGs Saving
Exclusive Women
linked with Banks
SHGs
Sr.
No. Savin No. Savin
Name of The Bank No. of No. of
Of g Of g
No. Membe Membe
SHG Amou SHG Amou
rs rs
s nt s nt
Punjab
1 Allahabad Bank 304 3040 9.40 95 950 2.94
2 Bank of Baroda 150 1200 50.30 142 710 24.50
3 Bank of India 374 4452 25.43 271 3253 18.76
4 Canara Bank 159 1936 9.53 137 1502 7.28
5 Central Bank of India 540 6022 64.42 354 4106 42.06
6 Punjab & Sind Bank 1113 11744 50.89 745 7911 31.08
2041.7 2207 183.3
7 Punjab National Bank 4315 46575 2105
7 3 8
3787
8 State Bank of India 3944 47328 89.00 3156 71.00
2
Table 5.5

Amount Rs. Lakhs
Details of SHGs Saving Out Of Total SHGs-
Sr. linked with Banks Exclusive Women
Name of The SHGs
No. Bank No. No. of Savin No. No. of
SavingAmou
Of Membe g Of Membe
nt
SHG rs Amou SHG rs
s nt s
Haryana
1 Bank of Baroda 152 725 16.00 129 350 2.60
2 Bank of India 139 1398 42.15 31 290 2.20
3 Canara Bank 453 4925 52.25 390 4052 37.59
Central Bank
4 482 5296 28.72 350 3844 19.14
of India
5 Indian Bank 114 1710 3.63 114 1710 3.63
Punjab &
6 704 7040 49.76 411 4110 28.57
Sind Bank
Punjab
7 10703 10926 7002.8 803 8414 4264.17
National
0 2 7 8
Bank
8 State Bank of 4984 59808 207.00 419 5028 170.00
India 0 0
Table 5.6

Amount Rs. Lakhs
Out of Total SHGs-
Details of SHGs Saving
Exclusive Women
linked with Banks
SHGs
Sr.
No. Savin No. Savin
No. of No. of
Name of The Bank of g Of g
No. Membe Membe
SHG Amou SHG Amou
rs rs
s nt s nt
Himachal Pradesh
1 Bank of India 46 465 11.50 0 0 0.00
2 Canara Bank 118 1440 4.65 118 1440 4.65
3 Central Bank of India 412 4244 48.21 324 3382 33.68
4 Indian Bank 39 585 2.37 39 585 2.37
5 Punjab & Sind Bank 92 920 11.62 53 530 6.73
1804 18240 1127.8 12301 946.2
6 Punjab National Bank 12301
9 7 0 0 4
100.0
7 State Bank of India 6794 81528 126.00 5436 65232
0
259.9
8 UCO Bank 993 11432 333.19 760 8680
1
Table 5.7
INTERPRETATION:-There are four states which show the relationship between Banks SHGs and
women SHGs. According to above table it show the total saving of women SHGs with total SHGs and
total saving of SHGs with banks. There are more % of women SHGs saving out of total SHGs saving. In
Delhi region 2017-18 highest SHG Savings amount to women in Punjab national bank is 103.99 lakh
and lowest in Central Bank of India is 0.30 lakh. In Punjab region 2017-18 highest SHG Savings

amount to women in Punjab National Bank is 183.38 lakh and Lowest in Allahabad Bank is 2.94 lakh.
In Haryana region 2017-18 highest SHG Savings amount to women in Punjab National Bank is 4264.17
lakh and Lowest in Bank of India is 2.20 lakh. In Himachal Pradesh region 2017-18 highest SHG
Savings amount to women in Punjab National Bank is 946.24 lakh and Lowest in Bank of India is 0.00
Lakhs. It shows the good relationship of women SHGs with SHGs group and banks.
5.3 Objective 3:- To clarify the limitation of microfinance programmes as the tool for women‟s
empowerment and the type of support service necessary to maximize the contribution of microfinance
service.
Figure 5.3a Woman

CHALLENGES FACED BY THE WOMEN ENTREPRENEURS:
Challenges are faced by the women entrepreneurs due to many reasons. Some of the challenges faced by
the women entrepreneurs include-
 Intense competition from similar products, limited knowledge, production and quality
standards as well as low confidence and morale.
 Many women started their own business due to the adverse circumstances, such as loss of
spouses, divorce or financial hardship.

 Lack of follow up and holding support (i.e. Capital, market linkages, technical information and
marketing techniques) after receiving Entrepreneurship development training.
 A risk adverse mindset.
 Inadequate capital.
 Networking problem (i.e. with raw supplier to buyer of products) Insufficient management and
marketing skills.
 Low level of motivation and courage.
 Lack of support from male members (of the families) as well as banks
 Large magnitude of the target group of poor people.
 Attitudinal rigidities.
 Difficulty in creating awareness among people.
 Limited resources with the NGOs.
 Large requirements of training and sensitization of issues.
 Limited number of experienced intervention agencies.
 Diversities of situations due to wide coverage.
OVERCOMING THE CHALLENGES:

The challenges faced by the women entrepreneurs can be overcome with the help of the following
measures-
Creating the Importance of Entrepreneurship program and skills training, and MF and support under
single roof.
Training programme operating in several states helped NGOS-MFIs provide their microfinance clients
different set of skills for successfully running enterprises.
Provide micro credit for livelihood support and to micro enterprises development.
Encouraging women entrepreneur to utilize the loans for productive purposes and have the potential to
become entrepreneur.
Establishing a network of SHG to serve as a “self-help community” for micro enterprises development
activities.
Social recognition of women leading an enterprise. Developing female mentors, trainers and advisors.
Establishing sources of credit.

5.4 Objective 4:-To study potential hurdles in the developing of women
entrepreneurship.
Role of Microfinance Services:-
1. Do not restrict loan use: - Access to financial services provides the poor with the
opportunity to accumulate assets, to reduce their vulnerability to shocks (such as illness or death in the
household, crop failure, theft, dramatic price fluctuations, the payment of dowries) and to invest in
income- generation activities. It also enables them to improve the quality of their lives through better
education, health and housing. One of the most important roles of access to credit is that it enables the
poor to diversify their incomes. Most poor households do not have one source of income or livelihood.
Instead they pursue a mix of activities, depending on the season, prices, their health and other
contingencies. This may include growing their own food, working for others, running small production
or trading businesses, hunting and gathering, and accessing loans.
What to do?
Microfinance organizations should allow for the fact that micro entrepreneurs have a variety of uses for
funds, not only for the activity for which a loan is formally given but also for household operations and
other family enterprises. It would be too risky for the poor, particularly the poorest of the poor, to invest
all their income in a single activity. If the single activity or enterprise failed, the consequences of this
would be much greater than if they had several sources of income. Providers of quality financial
services recognize this and place relatively few restrictions on loan use. Most microfinance
organizations do not monitor client loans to ensure that the loan is being used for its stated purpose
because they recognize that it is part of the survival strategy of poor clients to make an on-going stream
of economic choices and decisions. The clients themselves know how best to manage their funds.
Example: Kamala Rani's diversified activities (Bangladesh). Kamala Rani is an experienced borrower.
She has taken loans three times. She invested her small, first loan (1,000 taka) in her husband's business.
He trades in bamboo and sells bamboo products in his shop. Kamala also provides labour to make
bamboo mats. When she obtained her second loan (2,000 taka), she used it to make large containers for
storing crops and other products, which she sells from home to wholesalers and villagers. Next she
borrowed another 4,000 taka, primarily to buy a cow. She can repay her loan from her profits from
selling milk and from her investment in her husband's business. She still makes mats and other bamboo
products, which she plans to sell at the end of the year, when the price of the mats will go up. She can
take advantage of this increase in the price of the mats because she has other sources of income to make
her weekly loan installment payments. Like other low- income clients, Kamala Rani’s diversified
activities enable her to maximize returns from investment.

2. Provide access to financial services, not subsidies: - For microenterprises, the most
common constraint is the lack of access to working capital to grow their business. Low-income
entrepreneurs want rapid and continued access to financial services rather than subsidies, and they are
able – and willing – to pay for these services from their profits. Most micro entrepreneurs borrow small
amounts for short-term working capital needs. The returns from their economic activities are normally
sufficient to pay high interest rates for loans and still make a profit.
Micro entrepreneurs value the opportunity to borrow and save with MFIs since they provide services
that are cheaper than those that would normally be available to poor clients or that would be entirely
unavailable to them. Moneylenders charge very high interest rates, often many times the rate charged by
MFIs, and the moneylenders' terms may not be suited to the borrower. Micro entrepreneurs have
consistently demonstrated that they will pay the full interest cost to have continued access to financial
services from MFIs.
What to do?
MFIs cannot afford to subsidize loans. If the organization is to provide loans on an on-going basis, it
must charge interest rates that allow it to cover its costs. These costs tend to be high because providing
unsecured, small loans costs significantly more than loans in traditional banking. The costs to the
institution include operating costs, the cost of obtaining the funds for loans, and the cost of inflation.
MFIs cannot rely on governments and donors as long-term sources of funding. They must be able to
generate their own income from revenues, including interest and other fees. Since the poor seek
continued and reliable access to financial services and are able and willing to pay for it, it is
advantageous to both the institution and the clients to charge interest rates that cover the cost of the
services
Examples: Client demand as an indicator. If clients repay their loans, pay full-cost interest rates and
remain in a programme as borrowers or savers, it is a very good indication that they value these services.
A detailed, independent review of the microfinance activities of the United Nations Capital
Development Fund (UNCDF) in Africa, Asia and Latin America found evidence that poor clients were
willing to pay the interest rates necessary to provide these services. “Even when they have to pay the
full cost of those services, they use them and come back to use them again and again.” Continued and
reliable access to credit and savings services is what is most needed. “Subsidized lending programs
provide a limited volume of cheap loans. When these are scarce and desirable, the loans tend to be
allocated predominantly to local elite with the influence to obtain them, bypassing those who need
smaller loans. In addition, there is substantial evidence from developing countries worldwide that
subsidized rural credit programs result in high arrears, generate losses both for the financial institution

administering the programs and for the government or donor agencies, and depress institutional saving
and, consequently, the development of profitable, viable rural financial institutions."
3. Financial services contribute to women’s empowerment: - Women entrepreneurs have
attracted special interest from MFIs because they almost always make up the poorest segments of
society, they have fewer economic opportunities, and they are generally responsible for child-rearing,
including education, health and nutrition. Given their particularly vulnerable position, many MFIs seek
to empower women by increasing their economic position in society. Experience shows that providing
financial services directly to women aids in this process. Women clients are also seen as beneficial to
the institution because they are seen as creditworthy. Women have generally demonstrated high
repayment and savings rates.
What to do?
MFIs interested in serving women should understand the specific needs of women clients and attract
women as customers. Women often have fewer economic opportunities than men. Women also face
cultural barriers that often restrict them to the home (for example, the institution of the veil, or purdah),
making it difficult for them to access finance services. Women have more traditional roles in the
economy and may be less able to operate a business outside of their homes. Women also tend to have
disproportionally large household obligations. Loan sizes may need to be smaller, given that women‟s
businesses tend to be smaller than men's. They tend to focus on trade, services and light manufacturing.
Women's businesses are often based in the home and frequently use family labour. Loans to women
should allow women to balance their household and business activities, for example, by not requiring
that too much time be spent in meetings and holding meetings in convenient locations. The gender of
loan officers may also affect the level of female participation in financial services, depending on the
social context.
Examples: Women and empowerment. Regardless of culture or national context, impact assessments
have found positive results for women with access to financial services. For instance, a study on the
impact of microfinance on poverty alleviation in East Africa, conducted by the UNDP MicroSave-
Africa programme, found that participation in a microfinance institution "typically strengthens the
position of the woman in her family. Not only does access to credit give the woman the opportunity to
make a larger contribution to the family business, but she can also deploy it to assist the husband's
business and act as the family's banker - all of which increase her prestige and influence within the
household." Access to networks and markets giving wider experience of the world outside the home,
access to information and possibilities for development of other social and political roles
 Enhancing perceptions of women's contribution to household income and family welfare,
increasing women's participation in household decisions about expenditure and other issues

and leading to greater expenditure on women's welfare
 More general improvements in attitudes to women's role in the household and community
 Many programmes have had negative as well as positive impacts on women. Where women
have set up enterprises this has often led to small increases in access to income at the cost of
heavier workloads and repayment pressures.
 Within schemes, impacts often vary significantly between women. There are differences
between women in different productive activities and between women from different
backgrounds.
 Positive impact on non-participants cannot be assumed, even where women participants are
able to benefit. Women micro-entrepreneurs are frequently in competition with each other and
the poorest micro-entrepreneurs may be disadvantaged if programmes do not include them.

CHAPTER 6
{SUGGESTION/
RECOMMENDATION}

6. SUGGESTION/ RECOMMENDATION:
 Credit is important for development but cannot by itself enable very poor women to overcome
their poverty.
 Making credit available to women does not automatically mean they have control over its use
and over any income they might generate from micro enterprises.
 In situations of chronic poverty it is more important to provide saving services than to offer
credit.
 A useful indicator of the tangible impact of micro credit schemes is the number of additional
proposals and demands presented by local villagers to public authorities.
 Globalization will not be allowed to expand the gap between the rich and the poor. Affluent
countries cannot continue to dump aid on needy nations; developing countries must not be
permitted to ignore the needs of their impoverished population.
 As the poor are vulnerable it is not sufficient for us just to provide micro credit, but to have a
series of support systems provided at the appropriate time.
Government can contribute most effectively by setting sound macroeconomic policy that provides
stability and low inflation.

CHAPTER 7
{LIMITATION & SCOPE
OF FUTURE RESEARCH}

7. LIMITATIONS & SCOPE OF FUTURE RESEARCH:
7.1 LIMITATION:
 TIME CONSTRAINT
Shortage of time was a very big constraint due to which some area of micro finance has been included in
the study.
 RESOURCE CONSTRAINT
Availability of data was a constraint due to which only secondary data is considered, which is available,
and also there are some MFIs whose data was not available
 SECONDARY DATA
All the information available was from secondary sources and data was very vast to analyze properly &
accurately
 WIDE AREA TO STUDY
Study being conducted was very wide & analysis require expertise knowledge & skills which was
lacking
 NO DIRECT SOURCE OF INFORMATION AVAILABLE
The information is collected from indirect sources so in some information data is not available
7.2 FUTURE ANALYSIS:

This research uncovered and evaluated significant new dimensions with the aim of creating and testing a
robust, holistic framework for microfinance impact measurement. Based on the contributions and
limitations of the thesis (discussed above), various avenues of future research can be suggested.
Although, this study developed and tested a robust framework for microfinance impact measurement in
India; more research is required to test whether the suggested framework can be used successfully in
other backward regions of India. Future studies should attempt to test the framework discussed in the
thesis across other backward regions of India.
Identified variables like distance from the city center and measurement of impact on migration are novel
contributions of this thesis. These variables need to be tested further in other areas of India to further
understand their importance. Finally, this study considered three dimensions of well-being: economic,
social and capability. Future works on this topic could possibly consider other impact dimensions like
the impact on the environment and psychological well-being. Such impact dimensions are bound to shed
more light on this important research topic. The whole study was based on historical data which was
may be useful in analysis of present and prediction of future.

CHAPTER 8
{CONCLUSSION}

8. CONCLUSION:
Traditionally women have been marginalized. A high percentage of women are among the poorest of the
poor. Microfinance activities can give them a means to climb out of poverty. Microfinance could be a
solution to help them to extend their horizon and offer them social recognition and empowerment.
Numerous traditional and informal system of credit that was already in existence before micro finance
came into vogue. Viability of micro finance needs to be understood from a dimension that is far broader-
in looking at its long-term aspects too.
A conclusion that emerges from this account is that micro finance can contribute to solving the problems
of inadequate housing and urban services as an integral part of poverty alleviation programmers. The
challenge lies in finding the level of flexibility in the credit instrument that could make it match the
multiple credit requirements of the low income borrower without imposing unbearably high cost of
monitoring its end use upon the lenders. A promising solution is to provide multipurpose lone or
composite credit for income generation, housing improvement and consumption support. Consumption
loan is found to be especially important during the gestation period between commencing a new
economic activity and deriving positive income.
India is the country where a collaborative model between banks, NGOs, MFIs and Women’s
organizations is furthest advanced. It therefore serves as a good starting point to look at what we know
so far about „Best Practice‟ in relation to micro-finance for women’s empowerment and how different
institutions can work together.
It is clear that gender strategies in micro finance need to look beyond just increasing women’s access to
savings and credit and organizing self-help groups to look strategically at how programmers can actively
promote gender equality and women’s empowerment. On the other hand, thank to women's capabilities
to combine productive and reproductive roles in microfinance activities and society has enabled them to
produce a greater impact as they will increase at the same time the quality of life of the women micro-
entrepreneur and also of her family.

CHAPTER 9
{BIBILOGRAPHY}

9. BIBILOGRAPHY:
1. PremaBasargekar, N. (2009), “How Empowering is Micro Entrepreneurship Developed through
Microfinance”, Asia-Pacific Business Review, Vol. V. pp. 67-76
2. R.Amundha, N. (2009), “Micro Finance – A Tool for Elevation of Social Entrepreneurship through
Women Empowerment”, Asia-Pacific Business Review, Vol. V. pp. 78-86
3. PawanGarga, N. (2009), “A Comparative Study of Opportunities, Growth and problems of
Women Entrepreneurs”, Asia-Pacific Business Review, Vol. V. pp. 87-94
4. J.Suganthi, N. (2009), “Influence of Motivational Factors on Women Entrepreneurs in SMEs”,
Asia- Pacific Business Review, Vol. V. pp. 95-104
5. VidyaSekhri, N. (2007). “Growth and Challenges Faced in Micro –Finance”, Journal of IMS
Group, Vol. (3), pp. 71-76
6. Cheston, Susy and Lisa Kuhn (2002), “Empowering Women Through Microfinance”,
Unpublished Background Paper for the Micro-credit Summit 15, New York, 10-13 November
(www.microcreditsummit.org).
7. Malhotra, Meenakshi (2004), Empowerment of Women, Isha Books, Delhi.
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http://www.who.int/violence_ injury_prevention/violence/world_report/en/full_en.pdf. Accessed July
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9. Cooper, Donald R.; Schindler, Pamela S. (2003), “Business Research Method”, 8th
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12. Bennett, L. (2002): Using Empowerment and Social Inclusion for Pro-poor Growth: A Theory of
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15. „NABARD initiatives turn rural women into entrepreneurs‟, The Hindu, Feb 20,2004
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http://rmk.nic.in/chap1.htm
http://www.evancarmichael.com/African-Accounts/1676/Who-are-the-clients-of-microfinance-
FAQ.html
http://ifmr.ac.in/cmf
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http://cua.wrlc.org/bitstream/1961/3707/1/etd_gsm23.pdf

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“THE SCOPE OF MICROFINANCE IN

THE INDIAN CONTEXT- A STUDY”

Project Report Submitted in Partial

Under the guidance of

SIKKIM MANIPAL UNIVERSITY (SMU)

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Industrial Professionals, Colleagues, Organization and Friends”

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TAPOSH KUMAR PAUL

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1. Introduction of the Study

1.2 Microfinance Definition 7

1.3 Concept and Features of Micro-finance 8

1.4 Microfinance Approach 9

2. Objectives of the Study 10

4.1 Introduction of Research Methodology 23

4.2 Type of Research Used 23

4.3 Method of Data Collection 23

5. Analysis & Interpretation of Data

7. Limitation & Scope of Future Research

7.2 Scope of Future Research 42

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1.2 Microfinance Definition

According to International Labor Organization (ILO), “Microfinance is an economic development

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1.3 Concept and Features of Micro-finance:

1. It is a tool for empowerment of the poorest.

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 To study potential hurdles in the development of women entrepreneurship.

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4.2 TYPE OF RESEARCH USED

4.3 METHOD OF DATA COLLECTION

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4.3.1 Primary Data

4.3.2 Secondary Data

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Particular Year Total SHGs All Women SHGs % of Woman

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Particular 2016-17 2017-18

Total SHGs 15.87 11.96

All Women 12.94 10.17

Total SHGs All Women SHGs

Total Amount of loan disbursed:-

Particular 2016-17 2017-18

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