Reshaping the Threads of Tradition: Financial Inclusion and Digital Empowerment of Heritage Handloom Entrepreneurs in Tamil Nadu

This research seeks to investigate the multiple factors which shape financial inclusion and digital adoption of handloom weavers, emphasizing how socio-economic, behavioral and institutional factors promote interaction with formal financial and digital systems. A mixed methods technique comprised both quantitative analysis of a survey with 272 responses and qualitative analysis from open-ended observations incorporated into thematic analysis. Quantitative analysis was conducted using SPSS and SmartPLS/AMOS to investigate relations across financial behavior, digital adoption and income, as well as structural access to finances. Qualitative responses were analysed and coded using NVivo software to identify contextual and perceptual elements. The research identified levels of partial financial inclusion by handloom weavers and that insurance schemes with basic digital tools promoted initial connection to the financial sector. Most weavers have not tapped into savings, credit or higher functioning digital tools because of structural and behavioral constraints. Through the utilization of digital tools, weavers are able to achieve greater transparency and move away from pieces to market; although market access was not shown to me significantly enhanced. Quantitative analysis indicated that income, access, and institutional factors were the most significant contributors to financial behavior, whilst qualitative analysis indicated perceptions, motivations and barriers to action or further analysis supported or were akin to quantitative analysis. The research presents an in-depth assessment of financial and digital inclusion (FDI) in a heritage-based entrepreneurship framework, by utilizing a diverse array of multi-level quantitative indicators with rich qualitative understanding, in order to produce nuanced insights into FDI adoption and embedding processes. The combination of structural modeling and thematic analysis employed in the study illustrates the merit of mixed-methods approaches to understand complex socio-economic phenomena through appreciating intersections in the behavioral, structural, and institutional influences on adoption. The study offers insights for planning interventions that promote financial and digital inclusion among heritage-based artisan communities, which informs future research and policy action for a sustainable and inclusive economic growth within heritage-based entrepreneurship context.