Do Micro Enterprises choose Micro Finance Institutions for meeting their financial needs? Evidence from Mumbai Slums.
Vol. Volume 19, Number 3 September/2014
Chandralekha Ghosh, Samapti Guha
The present paper empirically investigates types of Microenterprises (MEs) resorting to microfinance institutions(MFIs) for their financial needs in the slums of Mumbai, India. The study is based on a primary survey of MEs, located in two different types of slums namely “declared” and “undeclared” in Mumbai including the largest slum, “Dharavi”, in India, Asia. Empirical results show that the MEs from the undeclared slums mainly depend on the micro finance institutions. Apart from this fact, it has been also observed that MEs who are operating from private places and have started their operation less than five years ago are depending on the micro finance institutions to meet their financial requirements. The other MEs are either depending on the informal money lenders or on their own resources for running their enterprises.
Micro finance Institutions, Microenterprises, Urban slum