Authors

1. Dr. Swati Jain

Affiliation

• Associate Professor, School of Management and Commerce, Poornima University, Jaipur, Rajasthan

Abstract

Microfinance is not a new concept in this modern world. The concept of microfinance started
emerging in the late 90s. Microfinance is a powerful tool which is helping economically backward
people by not only providing them with income-generating activities but also bringing a positive
change in their lives. Often, cases and studies related to microfinance has shown that it is benefitting
people by providing them opportunities and making them self-reliant.
Micro, small and medium enterprises sector plays an imperative function in the local & societal
economic progress and employment creation. In Rajasthan, the Government is assisting Micro,
Small and Medium-Sized Enterprises while developing strategies to meet the challenges in dynamic
and competitive global business environment. In spite of these plans and schemes, the Jaipur MSME
sector is unsustainable owing to numeral troubles such as lack of approachability to microfinance
institutions and products. Exploring the sources and challenges faced by Jaipur's MSMEs in
accessing microfinance forms the basis of this research paper. A survey research methodology is
taken up, selecting a sample of MSMEs, and collecting the primary and secondary data from them via
questionnaires and interviews. The data is analysed using SPSS Statistics. It is evident from the data
collected, that owing to elevated operation overheads, unavailability of collaterals, insufficient skills in
organizing the emergent banking projects, the economic sector has been unsuccessful in extending
microfinance services to the MSMEs adequately. In conclusion, wherever default-risk of payment is
supposed to be high, micro finance should be taken by applicants as collateral. The research paper
recommends that few intervention policies must be initiated to streamline microfinance accessibility
and work towards MSMEs sustainability.

Keywords

Micro, Small and Medium Enterprises, Source of finance to MSMEs, Microfinance Accessibility, MFIs

References

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