Impact of Entrepreneurial Orientation on Microcredit Utilization by SHG Members of Rajasthan

The purpose of this article was to investigate how entrepreneurial orientation affects the use of microcredit. Data were collected from 226 self-help group (SHG) women from the Indian state of Rajasthan, using a questionnaire through stratified sampling. The study uses structural equation modelling to validate the model and test the hypothesis. Four dimensions of entrepreneurial orientation—networking, proactiveness, risk-taking ability and innovativeness—are examined for their influence on the effectiveness of microloan utilization by SHG women of Rajasthan. The results show that entrepreneurial orientation positively impacts microcredit utilization, with networking and proactiveness emerging as key drivers. These findings extend the theoretical scope of entrepreneurial orientation by linking it to microfinance and provide practical insights for policymakers and practitioners aiming to enhance the effectiveness of microcredit programmes. The study provides a basis for further research and adds to the expanding literature on microfinance and women’s empowerment.