Inderscience Publishers

Approaches to microenterprise development: comparison of case studies from Maharashtra

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Among various self-employment options, the microenterprise has been recognised as an important tool for employment generation and poverty alleviation in developing countries by policy makers. This study looks at some selected approaches for promoting microenterprises. For the study, four organisations that have adopted various approaches for the promotion of microenterprises, namely, the building human capital approach; the financial system approach (SHG bank linkage model and MFI model); and the holistic approach, were selected across Maharashtra. The study uses the case study method, for which qualitative and quantitative data were collected from 180 microentrepreneurs and 60 respondents from organisations. It was found necessary for training organisations to provide funding for deserving plans or at least to link them with banks for loans. The financial system approach was able to successfully establish microenterprise but failed to help microentrepreneurs in the expansion of their respective microenterprises due to the limitation on the loan amount.

Keywords: microfinance, microenterprise, Maharashtra

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