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Stream/Area:
-
Subject:
-
Paper ID:
IJSREM67520
Volume:
10 |
9 |
Sep 2026
Pages:
1-7
Publication Frequency:
Monthly (12 issues per year)
License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.
Commerce Department
Government College for women (A), Mandya University
Commerce Department
Government College for women (A), Mandya University
Introduction: Micro and small enterprises (MSEs) are a major source of employment and income in rural India, yet many remain constrained by limited access to formal credit, savings facilities and financial services. Microfinance and broader financial inclusion initiatives, including digital financial services, have been promoted to close these gaps and strengthen rural livelihoods. However, local evidence on their role in sustaining enterprise growth in Karnataka remains limited. Purpose: This study examines how microfinance and financial inclusion influence the growth and sustainability of rural MSEs in Mandya district, Karnataka. It focuses on access to credit, savings and digital financial services, and their contribution to enterprise performance and household livelihoods. Methodology: The study adopts a descriptive and analytical design using primary data collected from 50 rural MSE owners in Mandya district, selected through a sampling technique. Data were collected using a structured questionnaire and analysed using descriptive statistics, correlation and regression analysis to examine the relationship between financial access and enterprise outcomes such as income, business expansion and employment generation. Findings: The findings indicate that access to microfinance credit, formal savings mechanisms and digital financial services is positively associated with enterprise performance and livelihood sustainability. Credit access emerged as the strongest predictor, while savings and digital services improved resilience and business continuity. Barriers such as limited financial literacy, documentation requirements and uneven digital access continue to restrict fuller inclusion, particularly among women and smaller enterprises. These results highlight the need for inclusive, well-targeted financial policies to strengthen rural entrepreneurship and promote sustainable economic development. Ethics and dissemination: Participation was voluntary, informed consent was obtained, and respondent anonymity and data confidentiality were maintained. Findings will be disseminated through peer-reviewed publication and shared with policymakers, financial institutions, microfinance providers and MSE support agencies to inform rural financial inclusion strategies.
KEYWORDS
Microfinance and financial inclusion are vital for strengthening rural micro and small enterprises in Mandya district. Timely credit, savings facilities and digital financial services support income generation, business continuity and expansion. However, financial literacy gaps, documentation requirements and limited digital access continue to constrain effective inclusion. Strengthening SHG–bank linkages and providing affordable, adequate credit can improve enterprise outcomes. Coordinated efforts by banks, government agencies and microfinance institutions are essential for sustainable rural entrepreneurship.
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Publication Date
9/28/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
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