Financial Freedom, Self-Determination And Social Change Of Small-Scale Women Entrepreneurs Through Microcredit

Abstract

Microcredit is recognized as a powerful tool for alleviating poverty and enhancing the standard of living, particularly among women. Various financial institutions, including NABARD, have been extending financial support through microcredit to individuals typically excluded from the formal financial sector. NGOs and MFIs play a crucial role in assisting these individuals by facilitating group formation and helping them identify income-generating activities (IGAs). This study primarily aims to assess the financial and social benefits gained by women entrepreneurs after participating in microcredit programs and how these benefits contribute to their financial and social empowerment. The study employs stratified random sampling, with data collected directly from respondents managing micro-enterprises or conducting IGAs through an interview schedule. Findings reveal that microcredit programs enhance participants’ profit-earning capacity, leading to improved decision-making abilities and increased social benefits. However, despite these advantages, participants face several operational and marketing challenges that limit the overall effectiveness of the program.