The Impact of Microcredit on Small Businesses in India

Business and
Management
Dissertation

Table of Contents
Title..................................................................................................................................................1
A) Introduction.................................................................................................................................1
B) Theoretical background and research focus................................................................................2
C) Justification and contextualization..............................................................................................4
D) Methodology...............................................................................................................................5
E) References...................................................................................................................................9

Title
“The Impact of microcredit on small businesses in India. A case study A G
Technologies Pvt Ltd, Mumbai, India."
A) Introduction
The present study is related to The Impact of microcredit on small businesses in India.
Microcredit is described as a common type of micro-finance, which involves a very small loan to
support self-employed people or to establish a small company (Hermes, Lensink and Meesters,
2011). Therefore, people are very concerned about becoming an entrepreneur in today's modern
scenarios and starting their own company in order to gain long-term benefits. Microcredit
nevertheless allows companies to expand their plans or to strengthen their ideas to achieve
growth and development. Micro-credit is common type of micro-financing which involves a very
small loan to assist people develop or self-employed. These lenders are typically low-income
individuals, especially from the LDCs. Micro-credit is sometimes called "micro-crediting."
Micro-credit loans very small amounts to people for the launch or expansion of small businesses.
In this present report analysis has been executed over businesses in India, thus it is a developing
country which has gained higher development in Urban industries likewise services and
information technologies. Therefore, around 172 million Indians continue to live in poverty and
of these, 69 percent live in rural areas. Thus, More than two-thirds of the population based on
agriculture mainly at a small-scale or subsistence level for their livelihoods. Hence, in India there
are assorted number of microfinance businesses who plays a significant role to the growth of
Indian economy (Banerjee And et. al., 2015). The Indian microcredit industry is fragmented in
around 3000 businesses like MGIs, NGO, MFIs and so on, which supports an individual or
business in rendering financial ability to execute operations in effective manner. Credit and some
very limited financial services and goods for the rural, semicircular and urban poor so that they
are able to increase their income and boost living standards. From business creators access is
extremely difficult, but from existing small businesses that have records it is less difficult to
fund.
Research Aim
“The Impact of microcredit on small businesses in India. A case study of A G Technologies
Pvt Ltd Mumbai, India."
Research Objectives
1

 To access knowledge regarding the aspect of microcredit in the context of business.
 To examine the benefits of microcredit in context of small businesses in India.
 To determining the impact of microcredit over developing operations of small businesses
in India.
 To suggest ways to implement through small businesses to contribute towards economic
position of the country.
Research Questions
 What is the concept of microcredit in the context of business?
 How microcredit is beneficial for the small businesses in India?
 In what manner microcredit impacts on operations of small businesses in India?
 What are the effective ways through which small businesses can contribute towards
economic position of country?
B) Theoretical background and research focus
Theoretical background can be recognised as the imperative area of an investigation as it
helps in providing significant support to the entire work via developing theoretical perspective
which provides a way to individual for enhancing knowledge base over a specified research area.
This section of investigation is mainly encompasses over secondary sources like books, journals,
articles and past investigation and so on (Bauchet And et. al., 2011). Therefore, the present
analysis is based on determining how microcredit helps the small business to gain growth and
success. Thus it is a wider area of recognition which needs detailed analysis to get suitable idea
and information.
As per the views expressed by Julia Kagan, 2020, microfinance is also known as microcredit
which defined as the way of banking services that are offered to the unemployed or low income
people or groups who are not having any other source or access to financial services.
Microfinance mainly involves assorted banking facilities likewise loans, saving accounts,
insurances and transfer services to poor people without access to commercial banks. In addition
to this, microcredit’s are the most common of the microfinance services. Therefore, this also
termed to be the most growing business all over the world with an increasing number of
providers which is mainly considered to provide best help to the poor and it is recommended to
offer them a variety of services and focus on the specific need of every client. In today’s modern
business era the primary obligation of the businesses is to attaining higher growth and success
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