Saving the Economy should Start from Here
As editor's notes go, this one will begin on a tad bit of a depressing factual revelation, and a brutally honest at that. Poverty and unemployment remains two major challenges of development in India. There is a vast unmet gap in the provisions of financial services to the poor in India. Majority of the poor population depends for credit needs on informal sources of finance for livelihood support and consumption purposes.
If you go a bar higher on the poverty line, you'll find MSMEs doing every bit to not only grow themselves but to help grow their communities and surrounding villages. From the last 5 decades, MSME's in India has emerged as a highly dynamic and vibrant sector. MSME not only help in the strengthening of rural and backward areas but also provide employment opportunities. Micro, small and medium enterprise are complementary to large industries as additional units and provides its immense contribution towards the socio and economic growth of India.
Micro Finance Institutions are the main source of funding for the MSME and small entrepreneurs, in case where they can't access banking or any other related services. In India, the first initiative to introduce microfinance was the Self-Employed Women's Association (SEWA) in Gujarat, which established SEWA Bank in 1974. Since then, this bank has been providing financial services to individuals who wish to grow their own businesses in rural areas. The decade of 1990 has shown growth in micro finance sector as well as in information and communication technology (ICT) in India.
It is estimated that now about 1000 microfinance institutions (MFls) /NGOs are providing microfinance services in India through different delivery mechanism. Over a period of time certain best practices of delivery have emerged in India based on their clientele, focus area, interest rate, savings linkages, collateral, coverage and organizational legal structure. Micro Credit has been changing people's lives and revitalizing communities since the advent of Micro Finance Service.
This edition sheds lights on the heroes who saved livelihood of lakhs in their endeavour to uplift society, and bolster financial inclusivity.
Do let us know what you think.
If you go a bar higher on the poverty line, you'll find MSMEs doing every bit to not only grow themselves but to help grow their communities and surrounding villages. From the last 5 decades, MSME's in India has emerged as a highly dynamic and vibrant sector. MSME not only help in the strengthening of rural and backward areas but also provide employment opportunities. Micro, small and medium enterprise are complementary to large industries as additional units and provides its immense contribution towards the socio and economic growth of India.
Micro Finance Institutions are the main source of funding for the MSME and small entrepreneurs, in case where they can't access banking or any other related services. In India, the first initiative to introduce microfinance was the Self-Employed Women's Association (SEWA) in Gujarat, which established SEWA Bank in 1974. Since then, this bank has been providing financial services to individuals who wish to grow their own businesses in rural areas. The decade of 1990 has shown growth in micro finance sector as well as in information and communication technology (ICT) in India.
It is estimated that now about 1000 microfinance institutions (MFls) /NGOs are providing microfinance services in India through different delivery mechanism. Over a period of time certain best practices of delivery have emerged in India based on their clientele, focus area, interest rate, savings linkages, collateral, coverage and organizational legal structure. Micro Credit has been changing people's lives and revitalizing communities since the advent of Micro Finance Service.
This edition sheds lights on the heroes who saved livelihood of lakhs in their endeavour to uplift society, and bolster financial inclusivity.
Do let us know what you think.
