• Abstract

    This study aims to analyze how the variables of financial inclusion, access to capital, and financial awareness regarding Microfinance Institutions have impacted the economic empowerment of street vendors in India. Street vending is one of the most prominent facets of the informal economy in India. However, there is a lack of economic understanding among street vendors, resulting in a lack of knowledge and awareness about microfinance services. The absence of knowledge about MFI schemes creates difficulties for street vendors in accessing finance for their business operations. The three independent variables utilized in the study are financial inclusion, access to capital, and financial awareness, respectively, with economic empowerment of street vendors as the dependent variable. Quantitative data has been collected through the use of standard research instruments. Primary data were collected from 393 street vendors in South India and were analyzed using AMOS. It is evident that financial inclusion, access to finance, and financial awareness regarding MFIs have an impact on the economic empowerment of street vendors. This research provides insights into how street vendors in India can optimally utilize microfinance services with the aim of empowering them economically.

  • References

    1. Ahuja, P., & Batra J. (2017) "An analysis of awareness level of people about microfinance services: A study in Delhi." National J Multidisciplinary Res Development 2: 331-337
    2. Assan, J. K. (2008). Generational differences in internal migration: Derelict economies, exploitative employment and livelihood discontent. International Development Planning Review, 30(4), 377-399.
    3. Assan, J. K., & Chambers, T. (2014). India’s street vendors and the struggle to sustain their livelihoods and informal enterprises: Unionization, political action and sustainable development. International Journal of Development and Sustainability, 3(11), 2140-2161.
    4. Baruah, B. (2004). Earning their keep and keeping what they earn: A critique of organizing strategies for South Asian women in the informal sector. Gender, Work & Organization, 11(6), 605-626.
    5. Bhandari, A., & Yadav, S. (2017). Women street vendors and their economic empowerment: A case study of Delhi. International Journal of Humanities & Social Science, 7(8), 1–10.
    6. Bhomik, S.K. (2005). Street Vendors in Asia: A Review. As Cited in Assan, J.K. and Chambers, T. (2014), “India’s street vendors and the struggle to sustain their livelihoods and informal enterprises: Unionization, political action and sustainable development”, International Journal of Development and Sustainability, 3(11), pp. 2140-2161.
    7. Bhowmik, S. K., & Saha, D. (2011). Financial accessibility of the street vendors in India: Cases of inclusion and exclusion. Tata Institute of social science Mumbai-India.
    8. Borghei, N. S., Taghipour, A., Roudsari, R. L., & Keramat, A. (2016). Development and validation of a new tool to measure Iranian pregnant women’s empowerment. Eastern Mediterranean Health Journal, 21(12), 897-905.
    9. Chakrabarty, K. C. (2009). Banking: Key Driver for Inclusive Growth* KC Chakrabarty.
    10. Dillon, M. J., & Siegel, M. S. (2018). Street vendors in the global city: Economic empowerment and gender. International Journal of Urban and Regional Research, 42(3), 697-717.
    11. Gonzalez-Vega, C., Meagher, K., & O’Keefe, P. (2016). Microfinance and street vendors: Evidence from Peru. World Development, 81, 126-142.
    12. Gouws, A., & Tran, D. (2020). The gender gap amongst street vendors in South Africa: A case for gender-sensitive policy. Feminist Economics, 26(2), 266-286.
    13. Gunn, J. (2017). Financial literacy and economic empowerment of street vendors. In C. Petrovic (Ed.), Financial Literacy: A New Perspective (pp. 149-164). New York, NY: Springer.
    14. Haridasan, A., Reshma, S., & Sudhakaran, K. (2019). Aarathy. Role of ESAF in Developing Microfinance Sector. Int J Recent Tech Eng (IJRTE), 8, 308-310.
    15. Kalra, V., Mathur, H. P., & Rajeev, P. V. (2015). Microfinance clients' awareness index: A measure of awareness and skills of microfinance clients. IIMB Management Review, 27(4), 252-266.
    16. Kashyap, A. K., & O’Keefe, P. (2009). Microfinance and poverty reduction: What do we know? Journal of Development Economics, 88(2), 227-244.
    17. KC, L., Van Der Haar, G., & Hilhorst, D. (2017). Changing gender role: Women’s livelihoods, conflict and post-conflict security in Nepal. Journal of Asian Security and International Affairs, 4(2), 175-195.
    18. Khan, I, Bhandari, S. (2013). Marginalised Street Vendors and Financial Inclusion Levels. International Journal of Creative Research Thoughts (IJCRT), 10(11), pp. 1-5.
    19. Kumar, A. (2005). Measuring Financial Access Through User’s Surveys: Core Concepts, Questions and Indicators. Documento presentado durante el taller técnico “Defining Indicators of Financial Access,” Washington, DC y Londres. El Banco Mundial, DFID y Finmark Trust.
    20. Nandru, P., Chendragiri, M., & Velayutham, A. (2021). Examining the influence of financial inclusion on financial well-being of marginalized street vendors: An empirical evidence from India. International Journal of Social Economics, 48(8), 1139-1158.
    21. Ouedraogo, B., Ouedraogo, D., &Zoungrana, M. (2020). Financial Inclusion and Economic Empowerment of Street Vendors in Benin: Implications for Sustainable Development. Sustainability, 12(7), 2876.
    22. Park, C. Y., & Mercado, R. (2018). Financial inclusion: New measurement and cross-country impact assessment. Available at SSRN 3199427.
    23. Pasaribu, P., & Mindosa, B. (2021). The Bank Specific Determinants of Loan Growth and Stability: Evidence from Indonesia. Journal of Indonesian Economy and Business, 36(2), 93-123.
    24. Prakasam, S. (2022). Urban Street Vendors in India. Academic Foundation, New Delhi.
    25. Sanrego Y. D., & Antonio, M.S. (2013). The Effect of Social Capital On Loan Repayment Behaviour of the Poor (A Study on Group Lending Model (GLM) Application In Islamic Microfinance Institution), Journal of Indonesian Economy and Business, 28(2), 188-210.
    26. Shkeily, H. M., & Abdullah, N. (2020). The influence of demographic factors on the awareness level of microfinance institutions facilities in Zanzibar, Tanzania. Arabian Journal of Business and Management Review, 3(10), 1-4.
    27. Silva, P. C. D. (2021). Civil society engagement with business in search of common good: An experience in Global South.
    28. Siwela, G., & Njaya, T. (2018). Comparative analysis of the challenges of financial inclusion of female street traders in Asia, Latin America and Sub-Saharan Africa.
    29. Umar, U. H., Baita, A. J., Haron, M. H. B., & Kabiru, S. H. (2022). The potential of Islamic social finance to alleviate poverty in the era of COVID-19: the moderating effect of ethical orientation. International Journal of Islamic and Middle Eastern Finance and Management, 15(2), 255-270.
    30. Vijayabhaskar, N., & Kumar, G. A. (2021). A Socio-economic Study on Financial Inclusion in India–Street Vendor Perspective. PalArch's Journal of Archaeology of Egypt/Egyptology, 18(4), 5141-5151.

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Copyright (c) 2024 Malque Publishing

How to cite

Sundararaju, A., & Theivanayaki, M. (2023). Role of microfinance institutions in enhancing street vending business in India. Multidisciplinary Reviews, 7(3), 2024052. https://doi.org/10.31893/multirev.2024052
  • Article viewed - 445
  • PDF downloaded - 239