Role of Micro Finance Institutions in the Development of Start UPS in India

Abstract

The task force on Supportive Policy and Regulatory Framework for Microfinance constituted by newlineNABARD defined microfinance as the provision of thrift, saving, credit and financial services newlineand products of very small amount to the poor s in rural, semi urban and urban areas for enabling newlinethem to raise their income level and improve their standard of living . newlineMicrocredit began with the narrow focus of providing small business loans Focus expanded to newlineinclude not only the issuance of small business loans, but accepting savings deposits facilitating newlinemoney transfers issuing insurance providing small consumer loans for such things as housing, newlineeducation, household capital goods and other consumption activities. newlineExtensive research have been done till date on the performance evaluation of the Micro Finance newlineInstitutions. Most of the previous research has been done on the growth of micro finance newlineinstitutions in India. But, there is very less literature available on the role of micro finance in the newlinedevelopment of start-ups. The previous literature doesn t provide ample information about the newlinefactors responsible for the developmental role of MFI in the start-ups. There is very less research newlineon the variables which impact start-ups in India. The previous literature don t talk about various newlinechallenges faced by micro finance in the development of start-ups in India No research has been newlinedone so far that how micro finance as an investment is perceived by investors (start-ups)? As newlineregards the ancillary services provided, microfinance banks should support their clients by newlineoffering trainings on credit maximization. But there is very less literature available on this role of newlinemicro finance in the development of start-ups. newline