Role of micro finance in empowerment of small scale entrepreneurs

Abstract

The microfinance revolution in India reveals that it is playing a vital role in the vision of poverty eradication with various effort of government of India The role of microfinance now has been more tactical than in the past It promotes financial inclusion by adoption of individual lending to the poor and targeting micro enterprises It is not limited to only productive poor but also extend the innovation oriented entrepreneur It also eradicates the traditional hindrance to entrepreneurship and micro business by being with various NGOs The microfinance is a bigger contributor of one factor of production namely capital to entrepreneur The small scale entrepreneur has good amount of labor and land but they are always facing the problem of capital during the exploitation of production factors for economic activity to earn profit Now days small scale entrepreneurship is totally dependent on microfinance because of it is very feasible for infant entrepreneur across the world There is wider scope to do a research on the various aspects that lead to the upliftment of the small scale society The objective of the study is to carry out a research on combining microfinance with entrepreneurship for poverty alleviation empowerment of poor and sustainable development The study is to identify the role of microfinance in the development of small scale entrepreneurs to determine the constrain facing small scale entrepreneurs and to find out challenges facing microfinance institutions in providing services to small scale entrepreneurs newline