Presented By:- Nishant Kiran Department of Management

Introduction
Microfinance - an effective and Powerful

instrument for poverty reduction among people

Microfinance institutions contributed towards

the poor for enabling them to raise their income level and living standards in various countries
In developing countries like India The rich

getting richer and the poor getting more poorer

Introduction
Small enterprises in India - suffer from a great

deal of indebtedness
credit market have high interest rates and lack

of convenient access of credit to SMEs

So to lessen poverty & for consistent economic

growth there is the need for financial assistance and business development services for the micro and small enterprises.

Objective of study

To identify the contribution of financing MFI To study the effective facility loans provided by MFIs to micro and small enterprises. To investigate micro and small enterprises lead to the growth development of small scale Industries

Agency wise Bank Loans provided to MFIs during 2011-12 and Loans outstanding as on 31 March 2012
Sr.No. Name agency loan disturbed by bank/FI to MFI during the year 2011-12 Bank loans outstanding against MFI as 31 March 2012

No of MFIs

amt

no of MFI

amt

1 commercial banks 2 Regional rural bank 3 cooperating bank Sub Total 4 SIDBI Total

336 113 4 453 12 465

495097.7 1328.29 160.79 496586.8 23942 520528.8

1684 128 19 1831 129 1960

981098.1 3750.94 474.7 485323.7 159711.2 1145034

Facilities provided by Microfinance Institutions:

Provides Financial support Provides Infrastructural Facilities Promote Marketing and exports Modernization, technological and quality up gradation Promotion of entrepreneurship Promoting Village sector Promoting Handloom sector

GROWTH AND DEVELOPMENT OF MICRO AND SMALL ENTERPRISES

Performance of small scale industry production, Employment, and export

Target A. Production

Anticipated achievement

1.small scale industries

2.handloom cloth (mill.sq.m) 3.handicraft (crore)

1,404,000
100,000 1,32,821

585,112
6541 33,159

B. Employment 1.small scale industries(million person) 2 power loom (million person) 3.handloom (million person) 23.7 4.5 12 31.2 5 6.5

C. Export 1.small scale industries(crore) 2.handloom(crore) 3.handicrafts 1,26,0000 4500 17,000 1,77,600 4650 20,963

Source:-tenth five year plan, vol. II

Conclusion / Suggestions
self-help groups must be there that offer financial guidance and credit promote savings free members from unfair debt burdens Offers skills training and capacity-building workshops to increase economic independence, empowerment, and local employability of women and other groups Development of small businesses that produce

saleable goods, such as traditional handicrafts Consult start-up microfinance programs that struggle with operational, financial, or institutional sustainability

Conclusion / Suggestions
Provide entrepreneurial skills training to conduct

feasibility studies, perform cost/benefit analyses, write business plans, acquire financing, and initiate startups Increase the productivity and distribution of local farmers' goods, while providing drought relief to vulnerable families Expand and increase exposure of microfinance programs to outlying villages Offer marketing, distribution, pricing, and management training to local micro enterprises