Role of microfinance institutions in enhancing street vending business in India

Abstract

This study aims to analyze how the variables of financial inclusion, access to capital, and financial awareness regarding Microfinance Institutions have impacted the economic empowerment of street vendors in India. Street vending is one of the most prominent facets of the informal economy in India. However, there is a lack of economic understanding among street vendors, resulting in a lack of knowledge and awareness about microfinance services. The absence of knowledge about MFI schemes creates difficulties for street vendors in accessing finance for their business operations. The three independent variables utilized in the study are financial inclusion, access to capital, and financial awareness, respectively, with economic empowerment of street vendors as the dependent variable. Quantitative data has been collected through the use of standard research instruments. Primary data were collected from 393 street vendors in South India and were analyzed using AMOS. It is evident that financial inclusion, access to finance, and financial awareness regarding MFIs have an impact on the economic empowerment of street vendors. This research provides insights into how street vendors in India can optimally utilize microfinance services with the aim of empowering them economically.