Microenterprise development through organisational interventions: a comparative study of holistic and building human capital approach in India

Microenterprise is recognised as an important tool to achieve the objective of inclusive development. Various approaches have been used to promote microenterprises by the various government as well as non-government organisations. The holistic approach and building human capital approaches are two prominent approaches adopted to promote microenterprise. In addition to being the prominent approaches, these two approaches are contrasting in their features too. This study is an attempt to look at the effect of these approaches on the promotion of microenterprise. This study adopted case study method. Quantitative, as well as qualitative data was collected for the same. Two major organisations adopting this approach in the state of Maharashtra were selected. 90 respondents across two organisations were selected. The study has adopted a descriptive analysis method. Intra and inter-case analysis have been carried out. The findings suggested that holistic approach worked with very poor segment of the society whereas, building human capital approach is suitable for people in higher income group, who can afford to invest on their own. As holistic approach was providing all kind of support to their participants, they failed to increase the scale of the business. Because of lack of access to finance, start-up rate of microenterprise was less in building human capital approach.