Financial Inclusion and Women-Led Enterprises: A Comprehensive Study of Rural Banking Services in Guntur District
Author(s): Bandi Sudhakar Reddy
Publication #: 2509013
Date of Publication: 03.03.2017
Country: India
Pages: 1-9
Published In: Volume 3 Issue 2 March-2017
Abstract
This study examines the relationship between financial inclusion initiatives and the growth of women-led enterprises in rural areas of Guntur District, Andhra Pradesh. Using a mixed-methods approach combining survey data from 384 women entrepreneurs and secondary data from banking institutions, the research analyzes access to formal credit, savings behavior, and entrepreneurial outcomes during 2014-2016. The findings reveal that while 67% of women entrepreneurs have bank accounts following the Pradhan Mantri Jan Dhan Yojana initiative, only 32% have accessed formal credit for business purposes. Self-Help Groups (SHGs) emerge as crucial intermediaries, with 78% of successful women entrepreneurs being SHG members. The study identifies key barriers, including collateral requirements (45%), complex documentation (38%), and distance to banking facilities (28%). Results indicate that women with access to formal banking services show 43% higher business sustainability rates compared to those relying solely on informal sources. The research recommends targeted financial literacy programs, simplified loan procedures, and expanded banking correspondent networks to enhance financial inclusion for rural women entrepreneurs.
Keywords: Financial inclusion, women entrepreneurs, rural banking, self-help groups, microfinance, Guntur District, gender equality, economic empowerment.
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