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Do Micro Enterprises Choose Microfinance Institutions To Meet Their Financial Needs? Evidence From Mumbai Slums

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  • CHANDRALEKHA GHOSH

    (West Bengal State University, Barasat, North 24 Parganas, West Bengal, India)

  • SAMAPTI GUHA

    (Tata Institute of Social Sciences, Mumbai, Maharashtra, India)

Abstract

The study empirically investigates types of microenterprises (MEs) resorting to microfinance institutions (MFIs) for their financial needs in the slums of Mumbai, India. The study is based on a primary survey of MEs, located in two different types of slums, namely "declared" and "undeclared," in Mumbai including the largest slum, "Dharavi," in India, Asia. Empirical results show that the MEs from the undeclared slums mainly depend on the MFIs. Apart from this fact, it has also been observed that MEs operating from private places and started their operation less than five years ago depend on the MFIs to meet their financial requirements. The other MEs are either depending on informal money lenders or their own resources for running their enterprises.

Suggested Citation

  • Chandralekha Ghosh & Samapti Guha, 2014. "Do Micro Enterprises Choose Microfinance Institutions To Meet Their Financial Needs? Evidence From Mumbai Slums," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 19(03), pages 1-17.
    • Handle: RePEc:wsi:jdexxx:v:19:y:2014:i:03:n:s1084946714500204
    DOI: 10.1142/S1084946714500204
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    References listed on IDEAS

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    1. Paul, Sohini, 2013. "The Credit-worthiness of a borrower and the selection process in Micro-finance: A case study from the urban slums of India," MPRA Paper 48116, University Library of Munich, Germany.
    2. Abhijit Banerjee & Esther Duflo & Rachel Glennerster & Cynthia Kinnan, 2015. "The Miracle of Microfinance? Evidence from a Randomized Evaluation," American Economic Journal: Applied Economics, American Economic Association, vol. 7(1), pages 22-53, January.
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    Cited by:

    1. Arvind Ashta & Chandralekha Ghosh & Samapti Guha & Frank Lentz, 2021. "Knowledge in Microsocial Milieus: the Case of Microfinance Practices Among Women in India," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(1), pages 146-165, March.

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