Does Gender Define Access to Microcredit? Evidence from India
https://doi.org/10.26794/2308-944X-2024-12-1-37-50
Abstract
The aim of this research is to examine the influence of gender on the accessibility of microcredit for small and informal business owners in Nagaland, India. In addition, the study conducts a region-wise comparative analysis of the loans disbursed to self-help groups (SHGs) by banks. Using primary data obtained from a cohort of 205 small business proprietors within the state, the study used the methods of descriptive statistics and econometric analysis. Furthermore, the paper employed the logit model to examine key factors such as firm size, SHGs and the qualifications of the entrepreneurs, along with gender. The secondary data, obtained from the Centre for Monitoring Indian Economy and the National Bank for Agriculture and Rural Development, allow the study to conduct a comparative analysis using the percentage share approach. The results reveal that public sector banks disbursed the highest amount of loans to SHGs, and the comparative analysis indicates that SHGs in the North-Eastern Region of India have the lowest share of savings with banks. Based on the empirical analysis, the author concluded that firm size, financial services provided through SHGs, educational qualifications, and gender of small business owners play a significant role in the accessibility of microcredit from financial institutions.
Keywords
microcredit,
microfinance,
women entrepreneurship,
gender,
banks,
firm size,
access to finance,
econometrics,
India
About the Author
A. Rehman
Sikkim University
India
India
Ashraf Rehman — Master in Economics and an independent researcher in economics
Dimapur
References
1. Banerjee A., Duflo E., Glennerskr R., Kinnan C. The Miracle of Microfinance? Evidence from a Randomised Evaluation. American Economic Journal: Applied Economics. 2015;7(1):22–53. DOI: 10.1257/app.20130533
2. Hudon M., Sandberg J. The Ethical Crisis in Microfinance: Issues, Findings and Implications. Business Ethics Quarterly 2013;23(4):561–589. URL: https://www.jstor.org/stable/43695076
3. Hunt J., Kasynathan N. Pathways to Empowerment? Reflections on Microfinance and Transformations in Gender Relations in South Asia. Gender and Development 2001;9(1):42–52. URL: http://dx.doi.org/10.1080/13552070127738
4. Hameed W. U., Mohammed H. B., Shahar H. B. Determinants of Micro-Enterprise Success through Microfinance Institutions: A Capital Mix and Previous Work Experience. International Journal of Business and Society 2020;21(2):803–823. URL: https://doi.org/10.33736/ijbs.3295.2020
5. Dasgupta R. An Architectural Plan for Microfinance Institutional Network. Economic and Political Weekly 2006;41(11):1905–1100. URL: http://dx.doi.org/10.2307/4417975
6. Menon N., Rodgers M. Y. How access to credit affects self-employment: Differences by gender during India’s Rural Banking Reform. The Journal of Development Studies 2011;47(1):48–69. URL: https://doi.org/10.1080/00220381003706486
7. Anand P., Saxena S., Gonzales R. M., Dang H.A.A. Can Women’s Self-help Groups Contribute to Sustainable Development? Evidence of Capability Changes from Northern India. Journal of Human Development and Capabilities 2020;21(2):137–160. DOI: 10.1080/19452829.2020.1742100
8. Jain M., Jain E. Microfinance in India: Issues and Challenges. International Journal of Innovative Research and Practices. 2014;2(7):32–40. URL: https://forum4researchers.com/cw_admin/docs/IJIRP-JULY-14–04.pdf
9. Srinivasan N. Sustainability of SHGs in India. In: Microfinance in India. Karamakar K. G., ed. 2008;4(1):177–78.
10. Rehman A. Essays on Loan Disbursed to Microfinance Institutions by Financial Institutions: Insights from India. International Journal of Management and Business Research 2023;7(3):43–49.
11. Samineni S., Ramesh K. Measuring the Impact of Microfinance on Economic Enhancement of Women: Analysis with Special Reference to India. Global Business Review. 2023;24(5):1076–1091. URL: https://doi.org/10.1177/0972150920923108
12. Midya K. K., Hopa A., Das A. Empowerment of women through Self-Help Groups (SHGs) participants’ perception about enhancement of their capacity. Journal of the Indian Anthropological Society. 2021;56(1):109–126.
13. Turvey G. C. Microfinance, Rural Finance and Development: Multiple Products for Multiple Challenges: Discussion. American Journal of Agriculture. Economics 2011;93(2):415–417. URL: http://dx.doi.org/10.1093/ajae/aaq107
14. Kumar N., Raghunathan K., Arrieta A., Jilani A., Pandey S. The power of the collective empowers women: Evidence from self-help groups in India. World Development 2021;146(1):1–18. URL: https://doi.org/10.1016/j.worlddev.2021.105579
15. Patil S., Kokate K. Identifying factors governing attitude of rural women towards Self-Help Groups using principal component analysis. Journal of Rural Studies 2017;55:157–167. URL: https://doi.org/10.1016/j.jrurstud.2017.08.003
16. Mahato T., Jhan M.K., Nayak A.K, Kaushal N. Empowerment of women through participation in self-help groups: A bibliometric analysis and systematic review”. Journal of Enterprising Communities: People and Places in the Global Economy. 2023;17(6):1511–1538. URL: https://doi.org/10.1108/JEC-08–2022–0114
17. Ferri L., Ginesti G., Spano R., Zampella A. Exploring the Entrepreneurial Intention of Female Students in Italy. Journal of Open Innovation. 2018;4(27):1–10. URL: http://dx.doi.org/10.3390/joitmc4030027
18. Singh D. A Critical Study of Microfinance Institutions and Its Growth in India. Amity International Journal of Juridical Sciences. 2019;5(1):88–94.
19. Shylendra H.S. Microfinance Institutions in Andhra Pradesh: Crises and Diaspora. Economic and Political Weekly. 2006;41(20):1959–1963. URL: http://dx.doi.org/10.2307/4418232
20. Sultan M. U., Latif W. U., Ullah S., Jafar R. M., Hussain S., Ahmed W. The Role of Microfinance on Poverty Alleviation and its Impact on People and Society: Evidence from the Grameen Bank. Journal of Poverty, Investment and Development 2017;38(1):7–13.
21. Ghosh S., Vinod D. What Constrains Financial Inclusion for Women? Evidence from Indian Micro Data. World Development. 2017;92(2):60–81. URL: https://doi.org/10.1016/j.worlddev.2016.11.011
22. Yunus M. Microlending: Towards a Poverty Free World. Brigham Young University Studies 1999;38(2):149– 155. URL: https://scholarsarchive.byu.edu/byusq/vol38/iss2/8
23. Soni N., Sharma M.A. Progress pathway of Microfinance in India: Challenges and Potential. Amity Management Review 2020;9(2):18–26.
24. Chaudhuri K., Sasidhara S., Rajesh R. S.N. Gender, Small Firm Ownership, and Credit Access: Some Insights from India. Small Business Economics 2020;54:1165–1181. URL: https://doi.org/10.1007/s11187–018–0124–3
25. Basumatary H., Chhetri C.P., Rajesh R.S.N. Hitting the target, mission the point? Microcredit and women empowerment in rural India. Journal of Poverty 2022;27(3):217–234. URL: http://dx.doi.org/10.1080/10875549.2021.2023722
26. Rani U., Schmid P.J. Household characteristics, employment and poverty in India. In 2nd IZA/World bank conference on employment and development. 2007.
27. Lensink R., Hermes N. The Empirics of Microfinance: What do we know? The Economic Journal. 2007;117(517):1–10. URL: https://doi.org/10.1111/j.1468–0297.2007.02013.x
28. Khavel S. Microfinance: Creating opportunities for the poor? Academy of Management Perspective 2010;24(3):58–72. URL: http://dx.doi.org/10.5465/AMP.2010.52842951
29. Lee J. Y. Informing women and improving sanitation: Evidence from rural India. Journal of Rural Studies 2017;55(1):203–215.
30. Patel C.P., Lenka S., Parida V. Caste-based Discrimination, Microfinance credit scores, and Microfinance Loan Approvals among Females in India. Business and Society 2022;61(2):327–388. URL: http://dx.doi.org/10.1177/0007650320982609
Review
For citations:
Rehman A. Does Gender Define Access to Microcredit? Evidence from India. Review of Business and Economics Studies. 2024;12(1):37-50. https://doi.org/10.26794/2308-944X-2024-12-1-37-50
Email this article 