A STUDY ON THE ROLE OF MICROFINANCE IN WOMEN ENTREPRENEURSHIP DEVELOPMENT

Microfinance has emerged as a significant financial instrument for promoting inclusive economic growth and supporting entrepreneurial development among marginalized communities. In developing economies such as India, access to formal credit remains a critical barrier for women aspiring to establish and expand entrepreneurial ventures. Microfinance institutions (MFIs) play an important role in bridging this financial gap by providing small loans, financial literacy, and business support services to women entrepreneurs who are traditionally excluded from formal banking systems. The present study examines the role of microfinance in facilitating women entrepreneurship development and evaluates its impact on entrepreneurial growth and financial empowerment.

The study focuses on identifying the relationship between microfinance accessibility and the growth of women-led enterprises. Using secondary data sources such as reports from microfinance institutions, government publications, and research databases, the study employs correlation and regression analysis to examine the influence of microfinance on women entrepreneurship outcomes. Hypothetical analytical results indicate that access to microfinance significantly enhances women’s entrepreneurial participation, income generation capacity, and business sustainability.

The findings suggest that microfinance contributes not only to economic empowerment but also to social empowerment by improving women's decision-making capacity and financial independence. The study contributes to the growing body of literature on financial inclusion and entrepreneurship by providing insights into the effectiveness of microfinance programs in supporting women-led businesses. The research also highlights policy implications for strengthening microfinance frameworks to promote sustainable women entrepreneurship development.