EVALUATING THE INFLUENCE OF MICROFINANCE ON SME GROWTH IN RANCHI DISTRICT

Author Name: 1. Yogendra Mahto, 2. Dr Nazia Abbas Abidi

Volume/Issue: 03/09

Country: India

DOI NO.: 08.2020-25662434 DOI Link: https://doi-ds.org/doilink/12.2024-32263835/UIJIR

Affiliation:

1. Research Scholar YBN University, Ranchi, Jharkhand, India.
2. Assistant Professor, YBN University, Ranchi, Jharkhand, India

ABSTRACT

Microfinance institutions (MFIs) play a crucial role in fostering the growth of small and medium enterprises (SMEs), particularly in regions with limited access to formal financial services. This study evaluates the influence of microfinance on the growth of SMEs in Ranchi District, emphasizing their contribution to financial inclusion, entrepreneurial development, and economic sustainability. Using a mixed-method approach, the research analyzes data collected from SME owners, microfinance beneficiaries, and institutional stakeholders. Key parameters such as access to credit, financial literacy, employment generation, and business expansion are examined to determine the effectiveness of microfinance interventions. The findings highlight the pivotal role of MFIs in addressing financial constraints, promoting innovation, and enhancing the resilience of SMEs against economic challenges. However, the study also identifies gaps in service delivery and policy implementation that hinder optimal outcomes. The research concludes with actionable recommendations for policymakers and microfinance institutions to strengthen their impact on SME growth, thereby contributing to the overall economic development of Ranchi District.

Key words: Microfinance, SMEs, Ranchi District, financial inclusion, entrepreneurial development, economic sustainability