Abstract:
The third world countries are still facing some socio-economic problems like unemployment, poverty, inflation; low productivity etc. in India, despite over sixty years of development, about 30 percent of the total population i,e., around 30 million are still leaving below poverty line. In order to improve their living standard, they are to be productive employed. Out of the three employment generating sectors, the agriculture sector is not a position to accommodate such huge unemployed youth. There is a growing worldwide appreciation of fact that micro- enterprises play a catalytic role in the development process of global economies by creating employment generation, self employment and entrepreneurship culture among the youth. In view of this, the government of India has stressed the development of micro-enterprise as a strategy for employment generation and promotion of income generating among the below poverty line people, and promotion of self-employment and entrepreneurship culture among the local youth. This has been recognized both by government and other development agency. With the evidence of fact, many banks and financial institutions have evolved micro finance schemes to address the financial needs of micro-enterprises.
