Kudumbashree Microfinance Utilisation and Business Sustainability Among Women Micro-entrepreneurs In Kerala

Abstract

This study explored the impact of Kudumbashree microfinance schemes on the sustainability of women-led businesses in Kerala, with a focus on understanding how loans are utilised, assessing the long-term effects on business growth, and analysing the influence of institutional support. The study was guided by key research questions aimed at uncovering the specific ways

in which women entrepreneurs use these loans, the challenges they face in sustaining their businesses, and how institutional factors contribute to or hinder their success. To address these questions, a qualitative research approach was employed, involving in-depth interviews with 8 women micro-entrepreneurs who had received loans from the Kudumbashree program. The data collected from these interviews was analysed using thematic analysis, which allowed the identification of patterns related to loan utilisation, business sustainability, and institutional support. The findings reveal that while Kudumbashree loans significantly support the initial phases of business operations, challenges such as limited marketing and digitalisation investment and insufficient ongoing training stans in the way of the business reaching its full potential. Institutional support, particularly in terms of loan application processes and community networks, was found to be crucial, but the lack of continuous monitoring and follow-up training emerged as a key weakness. Based on these findings, the study recommended enhancing ongoing support and training for women entrepreneurs, improving the loan monitoring processes, and encouraging strategic investments in areas such as marketing and digitalisation to ensure the long-term success of these businesses. These recommendations are aimed at strengthening the effectiveness of Kudumbashree and similar microfinance programs in promoting sustainable economic development.