Abstract:

The study aims to explore the role of microfinance in promoting social entrepreneurship, particularly in rural and semi-urban areas where access to traditional financial institutions is limited. The main objective of this study is to assess how microfinance supports the success and sustainability of social enterprises that operate with both financial and social objectives. The study employs a mixed-method approach that incorporates both quantitative and qualitative techniques. We made sure to include a diverse range of ages, genders, and company kinds when we hand-picked 150 social entrepreneurs from rural and semi-urban areas. In order to determine which characteristics are most important for these businesses' performance and longevity, the quantitative part of the study uses rigorous statistical tests such as ANOVA, Chi-square, and Correlation studies. Microfinance amounts, demographics, company success, and social effect were among the principal data points uncovered by the surveys' well-designed questionnaires. The results of the statistical tests provide valuable insights. The ANOVA analysis revealed significant differences in financial performance across various sectors of social entrepreneurship, indicating that the type of business plays a critical role in determining its success. The Chi-square test showed a significant relationship between gender and business success, with women-led social enterprises demonstrating higher success rates and financial sustainability than those led by men. The correlation analysis further supported the positive relationship between the amount of microfinance received and the sustainability of social enterprises, highlighting the importance of adequate financial support for these ventures.  This research sheds emphasis on the significant influence that microfinance plays in ensuring the viability and longevity of social businesses, especially in regions that are not well supported by financial institutions. According to the results, microfinance not only helps people achieve financial success, but it also has a huge influence on society, particularly for women who are starting their own businesses. 

Keywords:

Microfinance, Social Entrepreneurship, ANOVA, Chi-square Test, Social Impact, Women Empowerment, Sustainability, Financial Inclusion, Rural Development.

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