FEMALE ENTREPRENEURSHIP, EMPLOYABILITY AND EMPOWERMENT: IMPACT OF THE MUDRA LOAN SCHEME

Abstract

Improved access to credit influences socio-economic growth. Accordingly, financial support schemes have been used widely as a development tool to help underserved individuals grow and elevate themselves out of poverty. Uplifting women, who are subject to unfair treatment because of gender biases, have been a major target of these programs. Therefore, the present study examines one such government microcredit scheme, the Mudra Yojana, which supports individuals financially to start an enterprise or expand the existing one by providing collateral-free loans. Further, it encourages female participants by charging lower interest rates. The present study, based on 417 female beneficiaries from the tribal districts of West Bengal, India, investigates how financial support has benefitted women in their socio-economic growth. It evaluates the scheme’s effect based on women’s employability and empowerment level. To analyze the data, the study employs ordered logistic regression, Wilcoxon Sign test, effect size, etc. The results suggest micro-credit through Mudra Yojana encourages female entrepreneurship, raises earnings and employability, and thereby empowers them financially, socially, psychologically and in the political arena. The findings of these studies reinforce the fact women could be “active agents of change” and play an important role in both the family and society.