Impact of Economic Downturn in Mysore

Impact of Economic
Downturn in Mysore

Table of Contents
1. INTRODUCTION ......................................................................................................................3
1.1 Overview...............................................................................................................................3
1.2 Significance/ Rationale of the study.....................................................................................3
1.3 Research aims and objectives ...............................................................................................4
1.4 Research Questions ..............................................................................................................4
2. Literature review..........................................................................................................................4
2.1 Growth aspects of the micro finance institutions..................................................................4
2.2 Trend of the economic downturn in the recent past..............................................................5
3. research design and methodology................................................................................................6
3.1 Types of investigation...........................................................................................................6
3.2 Methods of data collection...................................................................................................6
3.3 Sampling methods.................................................................................................................6
3.4 Accessibility issues...............................................................................................................6
3.5 Ethical issues.........................................................................................................................7
3.6 Data analysis plan ................................................................................................................7
3.7 Research limitations..............................................................................................................7
3.8 Schedule or time plan ...........................................................................................................7
REFERENCES................................................................................................................................9
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1. INTRODUCTION
1.1 Overview
Micro finance institutions such as credit union, commercial banks, cooperatives and other
sectors of government offer financial services to their customers. It plays a significant role for
the rural people and entrepreneurs who are unable to approach the bank for financial needs and
requirements (Chor and Manova, 2012). It also contributes in economic growth and
development. In the year 2008, financial crisis occurred at global level which compelled several
branches of micro finance institutions to close their working operations. Political aspects and
changes in exchange rate is one of the main causes of economic downturn which arises at global
level. Mysore is taken into consideration for the research because growth rate of micro financial
institution is high in this city. Besides this, there are many MFI's which are closed in Mysore due
to the financial crisis. Thus, this research will make focus upon the impact of financial crisis on
MFI's in Mysore.
1.2 Significance/ Rationale of the study
Economic downturn arouse at global level is the main issue that hampers the growth and
development of micro finance institutions of Mysore. On one hand, micro finance institution is
growing sectors which also contribute in economic growth and development (Karlan and
Valdivia, 2011). On the other hand, season of economic downturn slowdowns the activities of
market which may cause high rate of unemployment. Thus, it negatively affects the micro
finance institution work in Mysore.
It is the most important issue because growth and development of micro finance
institutions are highly dependent upon economic growth and development. Global economic
crisis proves to be disaster for micro finance institution of Mysore. It has placed two sided effect:
one is on micro finance institutions and another is on the entrepreneurs who wishes to start up
their new venture. Moreover, in economic downturn there is slow growth in market which direct
impacts the profitability aspects of entrepreneurs.
In the preset era, Mysore still faces the economic downturn which negatively affects the
growth and development of micro finance institutions. The growth of the micro finance
institutions is highly dependent upon economic conditions and aspects.
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