Financing Micro Enterprises : Problems and Prospects

Scaling up to finance for the micro entrepreneurs to meet their financial needs i.e. Savings, credit, Insurance against unexpected event etc.; through flexible products at competitive prices, presents formidable challenge in a country as vast varied as India. Micro enterprises are playing a vital role in developing countries by creating employment opportunities to the under privileged sections. Micro enterprises became a powerful tool for poverty alleviation. Micro Enterprises are proved as a remedial measure for social and economic problems in most of the developing countries. Research for streamlining the Micro enterprises in our country is need of the hour. There is a need to improve the living standards of the rural poor by establishing of Micro Enterprises, encouraging the Self Help Groups (SHG), creating employment opportunities to under privileged classes to raise their income levels, replacement of credit facilities by commercial banks in the place of money lenders, reducing the regional disparities, poverty alleviation programmes are need of the hour.