Abstract: This research delves into the public awareness surrounding microfinance schemes

in Karnataka State and their pivotal role in advancing Sustainable Development Goals
(SDG). Microfinance, a cornerstone of financial inclusion strategies, stands as a potent
instrument for socio-economic progress, particularly in regions of Karnataka. The study
employs a comprehensive mixed-method approach, integrating quantitative surveys and
qualitative interviews to capture nuanced perspectives from various stakeholders. Through
rigorous statistical analysis and thematic exploration, the study elucidates the level of public
awareness regarding microfinance initiatives and their alignment with SDG. Moreover, this
research delves into the intricate factors shaping public perceptions and engagement with
these schemes, thereby unravelling both challenges and opportunities for bolstering their
impact. The study highlights the significance of public awareness in promoting equitable
access to financial services, empowering women, stimulating economic growth, and fostering
sustainable communities. It also underscores the challenges faced in disseminating
information and suggests strategies for enhancing public awareness to maximize the impact
of microfinance schemes in advancing the SDG in Karnataka State. The findings revealed
that there is a significant difference in the awareness levels of respondents based on age,
employment status, and educational levels. By synthesizing insights gleaned from our
research, actionable recommendations are tailored for policymakers, practitioners, and civil
society entities. These recommendations aim to amplify awareness and foster greater
participation in microfinance endeavours, thus catalysing the advancement of SDG in
Karnataka and beyond.

Keywords: Financial Inclusion, Karnataka State, Microfinance, Mixed-method Approach,

Public Awareness, SDG (Sustainable Development Goals), Sustainable Communities
Review of Literature
Literature in India
The topics analyzed in this chapter include those related to microfinance, MFIs, etc.
This chapter has been designed to address the gaps in the research studies of other researchers
to create more room for further research building on the research above studies, which The
Researchers would be pursuing as a part of this study.

The research undertaken by Maroor et al. (2016) emphasised that financial inclusion
schemes like PMJDY, APY, PMSBY, PMJJBY, and PMMY are crucial for inclusive growth,
but there's a need to enhance awareness and access, especially in areas like Mangalore,
Karnataka. The study results of Mandrawal (2022) showed that microfinance significantly
impacts living standards and poverty reduction in India, particularly in rural areas, by
enhancing income levels, savings, and economic autonomy. Alsameer and Begum (2023)
found that the COVID-19 pandemic posed challenges to microfinance institutions in India,
impacting their financial efficiency while enhancing their social role, highlighting the need
for targeted interventions. Saritha et al. (2023) emphasised that microfinance is widely
accepted but requires more awareness in rural areas, particularly regarding loan acquisition
and repayment, emphasizing the need for improved familiarity with microfinance services.
Muralidhar et al. (2019) suggested that government initiatives supporting microentrepreneurs
require improvements in awareness and accessibility to promote financial inclusion and
address challenges in the microfinance sector. The study results of Jagannatha (2020) showed
that Microfinance, particularly through SHGs, plays a vital role in poverty alleviation and
women empowerment in Karnataka, emphasizing its significance for marginalized
communities' access to financial services. The research undertaken by Samineni and Ramesh
(2020) emphasised that microfinance positively impacts women's economic empowerment in
India, leading to increased income levels, financial management skills, and entrepreneurship
opportunities.

Ghosh (2012) suggested that SHG bank linkage programs have significantly improved
rural poor's access to formal financial services in India, contributing to their socioeconomic
status improvement. The findings of Makandar (2019) showed that SHGs play a crucial role
in women's empowerment in Karnataka, enhancing decision-making authority, economic
stability, and social status among participants. Mudakkar and Uppal (2023) suggested that
South Asian MFIs need to focus on social welfare initiatives to improve recipients' living
standards and ensure their future financial security. The research undertaken by Patil (2016)
showed that demographic factors influence beneficiaries' perceptions of MFI services' social
impact, with MFI services showing a positive influence on various welfare effect elements.
Ali et al. (2021) found that microfinance significantly impacts agricultural producers'
incomes in Karnataka, suggesting its potential to boost agricultural productivity and income
generation. The study results of Gupta and Hanagandi (2012) suggested that SHGs
significantly contribute to women's empowerment in Karnataka, enhancing social awareness,
income levels, and decision-making skills. Bavle and Shekar (2014) emphasised that rural
women's entrepreneurship and microfinance play a crucial role in poverty alleviation and
sustainable development in Karnataka, contributing to rural economies' growth. Dhakal
(2016) found that Microfinance services positively impact rural farmers' income and
expenditure patterns in Nepal, indicating their potential to alleviate poverty and enhance
economic stability.

Umesha (2022) suggested that Microfinance and SHGs significantly contribute to

women's economic and social development, emphasizing the need for continued support and
education to promote empowerment. The study results of Sarkar and Bharat (2011) suggested
that Microfinance significantly empowers women in Andhra Pradesh, leading to improved
economic status, decision-making power, and self-worth. Rao et al. (2009) emphasised that
microfinance offers a multifaceted approach to address fuel poverty in rural India, enhancing
energy access and alleviating poverty. The research undertaken by Yadav et al. (2018)
suggested that subsidy frameworks can address energy poverty among rural Indians,
promoting the adoption of clean energy solutions and enhancing rural bank participation.
Aruna and Jyothirmayi (2011) found that microfinance significantly impacts women's
empowerment in Andhra Pradesh, enhancing economic status, decision-making power, and
knowledge among participants.

Research Gap: Existing literature primarily focuses on assessing the awareness and
impact of microfinance and financial inclusion in various regions of India. However, more
comprehensive comparative analyses between different financial inclusion schemes and their
effectiveness in distinct urban and rural contexts must be explored, which could provide
valuable awareness for policymakers and practitioners in promoting inclusive financial
services. The existing literature needs to examine the role of technology in advancing
microfinance and contributing to SDG.

Statement of the Problem

In remote areas, microfinance has been proven to be a strategy for reducing poverty and
fostering sustainable development. However, examining how well microfinance is furthering
the Sustainable Development Goals (SDG) in rural Bengaluru is necessary. Additionally,
there needs to be more knowledge and awareness among the general people about
government programs connected to microfinance.

The potential impact of microfinance in rural Bengaluru is hampered by the absence of

understanding, which reduces its contribution to fulfilling the SDG. Thus, to recognize
possible gaps and enhance the efficacy of microfinance interventions, it is necessary to
examine how microfinance is advancing the SDG in rural Bengaluru and gauge the level of
public knowledge and comprehension of government programs towards microfinance.

Even with the execution of several government-funded programs aimed at microfinance

in rural Bengaluru, the general populace needs to gain knowledge and awareness of these
programs. Due to this lack of understanding, the ineffective use of microfinance services
limits their ability to progress the Sustainable Development Goals (SDG) in rural Bengaluru.
Thus, it is necessary to examine the degree of public knowledge and comprehension of
government microfinance programs in rural Bengaluru and gauge how they may affect the
attainment of SDG there.

Objectives of the Chapter

In conjunction with the research questions, the research objectives are as follows:

1. Determine the role of microfinancing in advancing sustainable development goals.

2. Examine how different demographic details influence the awareness levels of

individuals about microfinance schemes.

3. Ascertain the relationship between the awareness levels of individuals on

microfinance schemes and their opinions on various SDG.

Research Methodology
For this research, the work was undertaken to provide a general view of the mindset
and thinking of people towards microfinance and SDG. The population taken into account for
the purpose of this research study are all residents of Karnataka state eligible for or affected
by microfinance schemes and relevant to the SDG. A well-structured questionnaire was
prepared to gather information about the views and perceptions of the general public towards
Microfinance and Sustainability Development Goals thereby helping to analyse the
importance of awareness of the same. Data collected from 140 respondents were analysed
using appropriate statistical tools to fulfil the objectives of the chapter.

To get a transparent and unbiased view on the public's mindset on microfinance and
SDG, samples were drawn based on convenience and purposive sampling to obtain views
from different types of people in the state of Karnataka to understand their level of awareness
towards the topic. This was due to the heterogeneity of thoughts of different individuals of
similar age and due to the practical limitations of physical surveys. This research study was
conducted in the period between January 2024 and March 2024.

Analysis and Findings of the Study

Demographic Profile of the Respondents: The demographic profile, including

gender, age, employment status, education level, and number of family members, was
collected from 140 respondents. Out of them, 48.6 percent of the respondents are male, and
51.4 percent of the respondents are female. The age group of 18 to 28 years is more (32.9%)
than the other groups. Thirty percent of the respondents are unemployed, 27.9 percent of the
respondents are students, 24.3 percent of the respondents are employed, and 17.9 percent of
the respondents are self-employed. 74.3 percent of the respondents had completed their UG
Degree/Diploma/ITI and above. Majority of the respondents (45.7%) had a family of four
members.

Objective 1: Determine the role of microfinancing in advancing sustainable development

goals.

 T-test -Opinion on SDG Vs. Gender: It suggests no significant difference in SDG

opinion based on gender among the respondents. In other words, male and female
respondents have similar opinions regarding SDG.

 ANOVA – Opinion on SDG by individuals against Age group: The results suggest
significant differences in mean SDG opinion between certain age groups, particularly
with younger respondents (aged 29-38) showing lower mean SDG opinion compared
to older age groups.

 ANOVA - Opinion on SDG by individuals against Employment status: Results

suggest significant differences in mean opinion on SDG between different
employment status groups at the chosen significance level (0.05). However, some
trends might be worth further investigation, particularly between self-employed
individuals and students.

 ANOVA - Opinion on SDG by individuals against Educational Level: The results

suggest that there is a significant difference in mean opinion on SDG between
respondents with Standard 12 education and those with UG Degree/ Diploma/ ITI and
above, with the latter group showing higher mean Opinion on SDG.
  ANOVA - Opinion on SDG by individuals against Number of family members:
the analysis suggests that the number of family members may not significantly
influence the mean opinion on SDG in the given data set, but the result is not
conclusive.

Objective 2: Examine how different demographic details influence the awareness levels of
individuals about microfinance schemes

 T-test -Awareness of Microfinance schemes Vs. Gender: It suggests no significant

difference in awareness level based on gender among the respondents. In other words,
both male and female respondents exhibit similar levels of awareness.
 ANOVA - Awareness of Microfinance schemes against Age group: There is a
significant difference in opinion, particularly between the age groups "39-48" and
"49-58”.
 ANOVA - Awareness of Microfinance schemes against Employment status:
There exists a significant difference in awareness levels between self-employed
individuals and students, with self-employed individuals showing lower awareness
levels.
 ANOVA- Awareness of Micro-finance schemes against Educational level: The
results suggest a significant difference in awareness levels between respondents with
Standard 12 education and those with UG Degree/ Diploma/ ITI and above, with the
latter group showing higher awareness levels.
 ANOVA - Awareness of Micro-finance schemes against Number of Family
Members: The results suggest that there is a significant difference in awareness
levels between respondents with three family members and those with four family
members, with the former group showing higher awareness levels. However, no
significant differences were found between other family-size groups.

Objective 3: Ascertain the relationship between the awareness levels of individuals on

microfinance schemes and their opinions on various SDG.

 Correlation – Correlation between Awareness of Microfinance schemes and

Opinion on SDG: Based on the analysis, the null hypothesis (H0) is rejected and the
 alternate hypothesis (H1) is accepted, indicating that there is indeed a correlation
between awareness level and SDG mean scores.
Recommendations

Certain recommendations that have been framed by the Researchers based on the
information obtained throughout the course of the research study are as follows:

 Enhance awareness about Microfinance schemes

Launch multimedia campaigns using diverse channels such as social media, radio,
television, print media, and outdoor advertising to raise awareness about microfinance
schemes, their benefits, and eligibility criteria. Organize community events,
workshops, and outreach programs in both urban and rural areas to engage directly
with target audiences. Conduct financial literacy workshops, seminars, and
educational campaigns to enhance public understanding of basic financial concepts,
rights, responsibilities, and the potential benefits of microfinance participation.

 Targeted Product Development

Develop microfinance products tailored to address specific SDG, such as agricultural
loans for smallholder farmers (SDG 2), education loans for marginalized students
(SDG 4), or renewable energy financing for off-grid communities (SDG 7).

 Gender Equality
Promote gender-inclusive microfinance programs that empower women
entrepreneurs, increase their access to financial services, and support women-led
enterprises, aligning with SDG 5 (Gender Equality).

 Innovation and technology

Embrace digital financial services, mobile banking, and fintech solutions to enhance
the accessibility, efficiency, and outreach of microfinance initiatives, in line with
SDG 9 (Industry, Innovation, and Infrastructure).

Conclusion

In conclusion, the journey towards achieving the Sustainable Development Goals

(SDG) in Karnataka State is intricately intertwined with the success of microfinance schemes
and the level of public awareness surrounding them. Through the lens of microfinance,
communities have been empowered to break the shackles of poverty, gender inequality, and
economic marginalization. Public awareness campaigns have served as catalysts, igniting a
spark of knowledge and understanding among individuals and communities about the
transformative potential of microfinance.

Reflecting on the significance of these initiatives, it becomes evident that public

awareness is not merely about disseminating information but about fostering empowerment,
inclusion, and sustainable development. By equipping individuals with the knowledge and
tools to access financial services, make informed decisions, and chart their own economic
destinies, microfinance has emerged as a beacon of hope for millions across Karnataka.

However, the journey towards comprehensive awareness and impact is far from over.
Challenges persist, from addressing entrenched cultural beliefs to bridging the gap in
financial literacy. Yet, in the face of these challenges lies immense opportunity – an
opportunity to deepen commitment to inclusive development, amplify individual efforts in
reaching the most marginalized, and build a future where every individual has the chance to
thrive.

Looking ahead, stakeholders must continue to collaborate, innovate, and adapt in their
approach to public awareness of microfinance schemes. By leveraging emerging
technologies, strengthening partnerships, and tailoring interventions to the diverse needs of
Karnataka's population, new pathways to sustainable progress can be unlocked. The nexus
between public awareness, microfinance schemes, and the Sustainable Development Goals in
Karnataka State underscores a powerful synergy that holds immense potential for
transformative change. Through concerted efforts to raise awareness, marginalized
communities have been empowered to take control of their financial futures, thereby
contributing to the broader agenda of sustainable development.

Public awareness of microfinance schemes in Karnataka State is not just a means to an

end but a fundamental building block of a more equitable, resilient, and prosperous society.
By embracing the challenges and opportunities that lie ahead, let us remain steadfast in
commitment to leaving no one behind. Let us continue to harness the power of microfinance
as a force for positive change in the lives of millions across Karnataka and beyond.

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