Micro-Entrepreneurship Among Marginalized Groups: A Model for Sustainable Livelihoods

This study examines the impact of micro-entrepreneurship on promoting sustainable livelihoods within marginalised communities in India, encompassing Scheduled Castes (SC), Scheduled Tribes (ST), Other Backward Classes (OBC), women, and the rural impoverished. It aims to comprehend how localised, small-scale entrepreneurial endeavours facilitate poverty reduction, job creation, and social empowerment within the framework of Indian development. The study utilises a mixed-methods approach, combining secondary data analysis from government initiatives such as MUDRA Yojana, PMEGP, DAY-NRLM, and Stand-Up India with field-based case studies from specific states, including Bihar, Odisha, and Maharashtra. Semi-structured interviews with micro-entrepreneurs, Self-Help Group members, local NGOs, and financial institutions provide qualitative insights into operational issues and success determinants. The Sustainable Livelihoods Framework (SLF) assesses micro-enterprises based on economic, human, social, and institutional capital. The results indicate that micro-entrepreneurship in India is an essential mechanism for livelihood diversification, especially for women and rural youth. Businesses in industries such as tailoring, food processing, handicrafts, and small-scale trading have enhanced income security and diminished dependence on subsistence agriculture or migrant labour. Government initiatives have enhanced financial accessibility and skill acquisition; yet, deficiencies persist in market access, digital literacy, and post-loan assistance. Case studies demonstrate that collective structures, including Self-Help Groups (SHGs), Farmer Producer Organisations (FPOs), and women-led cooperatives, are especially effective in amplifying impact and fostering resilience. Micro-entrepreneurship provides a transformative avenue for equitable and sustainable development in India. Micro-entrepreneurship in India can foster self-sufficiency and equitable development, aligning with Aatmanirbhar Bharat and Viksit Bharat@2047 objectives. Legislative reforms can streamline processes and improve digital infrastructure.