Entrepreneurial Learning and Microcredit as Triggers of Micro-entrepreneurship in India

Abstract

This article evaluates whether contextual triggers lead to entrepreneurial behaviour among microfinance clients in India. The study identifies entrepreneurial training and microcredit as the contextual triggers that can be effective in creating entrepreneurial intentions and behaviour, respectively. Acquired learning helps to develop capability in an individual to identify the business opportunities around him, which help in creating entrepreneurial intention that can promote action. Microenterprises among low-income clients are usually formed by the support mechanism of triggering events. Shapero’s entrepreneurial event (SEE) model is used to capture the effects of microenterprise trainings that create entrepreneurial learning, leading to entrepreneurial intention and behaviour. The study also extends to capture the effect of microcredit as a moderator in effecting entrepreneurial behaviour among microfinance clients. The study finds that learning outcomes are capable of generating entrepreneurial intentions in a microenterprise context through the construct of desirability. Further, access to microcredit results in entrepreneurial behaviour. The findings provide direction to the effectiveness of entrepreneurial learning derived from entrepreneurial training in creating entrepreneurial intention. It also reveals the significance of moderating role of microcredit that leads to entrepreneurship behaviour. Therefore, findings are useful for policymakers in promoting microenterprises among the microfinance clients to address the problem of poverty.