Financial Inclusion through Microfinance and Entrepreneurial Development
Abstract
Entrepreneurship is vital for not only the financial development of the individuals but also the economy at large. Financial services are always critically important at every scale of the business and efficient provision of financial services always helps to nurture the business activity. Financial inclusion through microfinance is vital to reduce poverty through micro and small enterprise development. Academic research on this topic created a significant amount of literature for the last two decades. In this study, we reviewed 68 articles from different countries for a period of twenty years from 1990 to 2019. It is inferred that Small and Medium Enterprises-SMEs always have survival issues. Micro-entrepreneurs try to attain sustainable growth through their dedicated efforts, quality products, improving processing, innovation, working for customer satisfaction, and managing human resources. But all these entrepreneurial activities are less fruitful due to lack of finances and government support, which restrain micro-entrepreneurs to take initiatives and remain risk-averse. The critical review of these articles leads us to the conclusion that financial inclusion has a positive impact on multiple dimensions of entrepreneurial development. Furthermore, this also opens a new vista for future empirical research on micro, small, and medium enterprises development.В
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