Effectiveness of Microfinance in Enhancing Socio-economic Status of Rural Farmers through Entrepreneurship

The purpose of this paper is to assess the effectiveness of microfinance in improving the socio-economic status of farmers living in rural areas. By analyzing various microfinance initiatives, this study examines their impact on income generation and overall improvements in livelihood. Using a descriptive survey research method with both qualitative and quantitative approaches, the study purposively selects 200 informants from Siddhicharan municipality in Okhaldhunga. Data collection involves discussions, interviews, and observations. The research evaluates how access to microcredit, savings, and training programs contributes to income generation, asset accumulation, and livelihood sustainability among rural households. Findings reveal that small loans provided by microfinance institutions stimulate income-generating activities among rural farmers, leading to improvements in their well-being and socio-economic status. The study concludes that access to and utilization of microcredit positively influence decision-making abilities of farmers at home and within their communities, thereby elevating their socio-economic status, despite some remaining challenges. The results suggest a need for government initiatives to support rural farmers through agricultural loans and microcredit schemes to further promote their socio-economic development through agricultural entrepreneurship.