A Study on The Role of Microfinance in Enhancing Earnings and Promoting Entrepreneurship Among Low-Income Households Special Reference with Nagpur Region

ABSTRACT This study explores the significant role of microfinance in enhancing the earnings and encouraging entrepreneurial activities among low-income households in the Nagpur region. With limited access to formal banking systems, microfinance has emerged as a practical solution for financial empowerment, especially for economically weaker sections. The research adopts a descriptive design and is primarily based on data collected from 100 microfinance beneficiaries in Nagpur using structured questionnaires shared via Google Forms. Additionally, secondary data from journals, government reports, and microfinance institutions' websites were used to support and validate the primary findings. The analysis, conducted using SPSS software through descriptive statistics and Chi-Square tests, reveals that microfinance has a positive impact on the income levels of beneficiaries and plays a vital role in fostering small-scale entrepreneurship. However, the study also highlights several challenges faced by beneficiaries, such as difficulty in loan repayment, lack of financial literacy, and insufficient post-loan guidance. These limitations often restrict the full potential of microfinance initiatives. Based on the insights gained, the paper offers practical recommendations to improve the effectiveness of microfinance programs, including financial education, customized loan products, and better follow-up mechanisms. Overall, the research emphasizes that while microfinance can be a strong tool for socio-economic upliftment, its success depends heavily on the design, delivery, and support systems accompanying the financial services. Keywords: Microfinance, Low-Income Households, Entrepreneurship, Financial Inclusion, Earnings, Nagpur, Microfinance Institutions, Income Generation, Economic Empowerment, Poverty Reduction