The Impact of Micro Finance on the Development of Small Scale Enterprises in the Gujarat

Abstract

This study's main goal is to evaluate the effect of microfinance on Small and Medium-Sized Enterprises (SMEs) in Gujarat by using the Gujarat as a case study. The simple random sampling procedure was used to choose the 60 MFIs and 140 SMEs that made up the sample size for the study. A structured questionnaire was created to make it easier to gather pertinent data for analysis. Data presentations and analysis have strategically used descriptive statistics, which uses straightforward percentage graphs and illustrations. The study's conclusions show that a sizable portion of SMEs are aware of MFIs' existence, and some recognize the beneficial effects of MFI loans in encouraging their growth. In addition to providing financial assistance, it is advised that microfinance institutions always offer expert guidance to SMEs since this will help them determine if the amount they are requesting is too much or too little for the project. The microfinance institutions should hold seminars and workshops to inform SMEs about their policies, the wise use of money for SMEs, and the criteria used to evaluate loans. To gain the faith and trust of SME's, the microfinance banks should also start additional development initiatives.