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

In: Technology and Innovation for Social Change

Author

Listed:
  • 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)

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.

Suggested Citation

  • Samapti Guha & Nadiya Marakkath, 2015. "Relevance of Social Enterprises for Micro-entrepreneurial Growth: A Case-Based Discussion on Indian Microfinance Models," Springer Books, in: Satyajit Majumdar & Samapti Guha & Nadiya Marakkath (ed.), Technology and Innovation for Social Change, edition 127, chapter 0, pages 35-53, Springer.
    • Handle: RePEc:spr:sprchp:978-81-322-2071-8_3
    DOI: 10.1007/978-81-322-2071-8_3
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