Name: MANJUNATHA .N.B , VARADARAJE GOWDA .G.C
Country: India

Year: 2026
Volume: Volume-11, (Special Issue: March 2026)
Page Number: 485-494
DOI: https://doi.org/10.5281/zenodo.21026917

ABSTRACT
In rural areas of Hassan District, many women have turned to microfinance as a way to start and grow small businesses. Access to credit through self-help groups (SHGs) and joint liability groups (JLGs) has given women the opportunity to invest in activities like tailoring, food processing, petty shops, and livestock. This study looks at how microfinance influences the social and economic lives of women entrepreneurs, not only in terms of business growth but also in household decision-making, savings habits, and social participation. Field surveys and interviews were conducted with women borrowers across different villages, along with discussions with local NGOs and bank representatives. The study examines both financial outcomes-such as increased income, better working capital use, and asset creation-and social outcomes, including confidence, mobility, and a greater role in family decisions. The findings show that microfinance works best when loans are timely, adequate, and linked to training or market support. Women who combine credit with skills development and digital payment systems are more successful in expanding their businesses and securing steady earnings. At the same time, challenges remain. Some women face repayment difficulties when loans are not aligned with their business cycles, while others struggle with multiple borrowing and lack of support from family members. In such cases, loan repayments often come from household income rather than business profits, limiting growth. The study suggests measures such as aligning loans with seasonal business needs, providing simple bookkeeping and digital training, offering small emergency overdrafts, and strengthening producer groups to improve bargaining power. Overall, microfinance has had a positive effect on women entrepreneurs in Channarayapatna, but its long-term sustainability depends on coupling financial access with skills, markets, and institutional support.

Keywords: Microfinance; Women entrepreneurs; Rural empowerment; Financial inclusion.