Determinants of Micro-enterprises’ Access to the Government Financial Assistance Programme: A Case Study of the Pradhan Mantri Mudra Yojana

The micro-enterprise sector played a crucial role in generating self-employment and improving household income in developing countries. However, many micro-entrepreneurs depended on private moneylenders, relatives, and friends due to limited awareness of government financial assistance programmes and poor communication with bank officials. This study examined how micro-entrepreneurs’ demographic characteristics affected access to sanctioned loans under the Pradhan Mantri Mudra Yojana (PMMY). Based on primary data from 304 PMMY beneficiaries selected through a stratified random sampling method in North Karnataka, the study employed an ordinal logistic regression model for analysis. The findings revealed that the entrepreneur’s gender and district were significant determinants of access to sanctioned PMMY loans, whereas age, social class, region, marital status, education, and business experience were not. The study recommended that banks extend greater financial support to women entrepreneurs and enhance PMMY implementation in Bagalkote, Gadag, Haveri, and Koppal districts.