Relevance of Social Enterprises for Micro-entrepreneurial Growth: A Case-Based Discussion on Indian Microfinance Models

Samapti Guha () and Nadiya Marakkath ()
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Samapti Guha: School of Management and Labour Studies, Tata Institute of Social Sciences
Nadiya Marakkath: School of Management and Labour Studies, Tata Institute of Social Sciences

Chapter Chapter 3 in Technology and Innovation for Social Change, 2015, pp 35-53 from Springer

Abstract: Abstract Social enterprises have contributed immensely in the area of micro-entrepreneurial growth and development. The popular example of such enterprises is microfinance institutions in developing nations. This study uses the theoretical concepts of ‘Financial Depth’ and ‘Financial Breadth’ used in microfinance literature, to demarcate Indian microfinance service providers into semi-formal and formal microfinance institutions. Within this demarcation, two case studies are conducted, to understand how the philosophical and approach diversities among Indian MFIs result in two different microfinance models, having diverse impact on their clients’ micro-entrepreneurial growth. By understanding these contradictory views that exist at the interface of microfinance and micro-entrepreneurial growth, this study depicts that a welfare-oriented demand-driven microfinance model has more potential to foster entrepreneurial growth than a mere minimalist supply-driven microfinance model.

Keywords: Microfinance; Microentrepreneurs; Financial depth; Demand-driven model; Welfarish Approach (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-81-322-2071-8_3

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DOI: 10.1007/978-81-322-2071-8_3

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