Importance of Micro Finance in the Evelopment of Village Cottage Industry

Abstract

The handicrafts, small scale and medium scale industries manufacturing play a dominant role in programmes for rural development. The promotion of these industries leads to an improvement in social and economic conditions; and an overall balance of rural and urban industrial activities, which in turn, retards migration of labour from rural to urban areas. Socioeconomic improvement in the rural set up is crucial which need improvement in the allied sectoral activities. Rural development is a holistic approach of development. There are so many item to analyze the r ural development issue. Here two items ( self-employment and micro-finance) have chosen to elaborately discuss about it. Self-employment and micro-finance closely related with each other in the rural development aspect. It’s a case study on Jari embroidery industry which is non- agricultural base. Methodology of the study followed simple random sample techniques for survey within jari workers family and units. Major findings are mainly rural women are involved in this work in family and joint sectors but in unit sectors young male are engaged. Working female also connected with SHGs to enhance their livelihood.

Introduction:

Microfinance, also known as microcredit, is a financial service that offers loans, savings and insurance to entrepreneurs and small business owners who don't have access to traditional sources of capital, like banks or investors. The goal of microfinancing is to provide individuals with money to invest in themselves or their business.

Microloans are typically lower than the average business loan (ValuePenguin reported this figure to be $713,000 in the fourth quarter of 2016). According to the SBA, the average microloan is about $13,000, but some reach up to $50,000.