Role Of Micro Finance To Empowerment Of Small Scale Entrepreneurs In Thiruvananthapuram District

Abstract

This study explores the role of microfinance to the empowerment of small-scale entrepreneurs in the Thiruvananthapuram District of Kerala. Microfinance has emerged as a powerful tool for promoting financial inclusion and entrepreneurship, particularly among those who lack access to traditional banking services. The research aims to assess how microfinance influences various aspects of empowerment such as access to capital, business development, repayment capacity, and overall financial well-being. Primary data was collected through a structured questionnaire from 150 respondents who are active microfinance beneficiaries in the District. The data was analyzed using simple percentage analysis and chi-square tests to examine relationships between demographic variables and the impact of microfinance. The findings reveal that microfinance plays a significant role in financial empowerment, with the majority of respondents reporting positive outcomes in terms of income generation, business growth, and repayment confidence. However, challenges such as insufficient loan amounts, procedural delays, and lack of training were also highlighted. The study concludes that while microfinance significantly contributes to entrepreneurial empowerment, its impact can be enhanced through streamlined procedures, increased financial literacy, and supportive policy measures. The research offers valuable insights for policymakers, financial institutions, and development agencies aiming to strengthen the microfinance ecosystem and promote inclusive economic development.