Role of Microfinance in Empowerment of Rural Women Entrepreneurs in Karnataka: A Comparative Study Between Tumkur and Chikkaballapura District

Abstract

Microfinance has emerged as a powerful instrument for poverty alleviation and women's empowerment in rural India. This study explores the role of microfinance institutions (MFIs) and self-help groups (SHGs) in promoting entrepreneurship among rural women in Tumkur and Chikkaballapura districts of Karnataka. Using field data, interviews, and secondary sources, the paper compares access to credit, income generation, and decision-making power among women entrepreneurs. The findings reveal that while both districts show significant empowerment outcomes, Tumkur has achieved relatively higher levels of economic independence and enterprise sustainability due to stronger institutional linkages. The paper concludes that microfinance has a transformative role in enabling rural women to move from subsistence to sustainable entrepreneurship.