Microfinance as a Tool for Women Entrepreneurial Development in Karnataka: An Empirical Study

Abstract

Women entrepreneurship is one of the most effective forces that have become important to the economic growth, job creation and social empowerment. But, it is a significant problem for many female business owners to have restricted access to financial resources. Microfinance has been hailed as a good instrument to tackle the financial exclusion and encourage entrepreneurial activities among women. The present study is an attempt to explore the role of microfinance in entrepreneurial development of women in Karnataka. The study is descriptive, analytical and uses primary and secondary data. Primary data were obtained from 200 women entrepreneurs by using structured questionnaire and interviews and secondary data were obtained from NABARD reports, RBI publications, Government reports and research journals. The data was analysed using statistical tools namely Percentage analysis, correlation, regression and ANOVA. The results show that microfinance has both positive and meaningful effects on entrepreneurial development, income generation and women empowerment. The study concludes that microfinance plays a significant role in the economic and social development of women entrepreneurs in Karnataka, but at the same time, the constraints faced by the women entrepreneurs including low loan size and inadequate entrepreneurial support are still affecting the sustainability of their businesses.