Gender Disparities In Credit Access And Sustainable Micro-Entrepreneurship: Evidence From The PMFME Scheme In India
DOI:
https://doi.org/10.53555/jaes.v22i1.98Keywords:
PMFME Scheme, Credit Access, Loan Sanction, Gender Disparities, Micro Food Processing Enterprises, Financial Inclusion, Entrepreneurial sustainability.Abstract
The Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme has emerged as a key national intervention to strengthen micro-entrepreneurship, enhance financial access, and increase credit flow to India’s unorganized food processing sector. The timely and adequate access of institutional finance under PMFME scheme plays an important role in survival of enterprise, stabilizing income of entrepreneurs and the supports the long term sustainability of the micro food enterprises. This study empirically examines the determinants of bank loan sanctioning and gender-based disparities in credit approval among PMFME beneficiaries using a multi-method analytical framework. Drawing on a dataset of 523 beneficiaries across various districts, the analysis integrates descriptive statistics, correlation matrix, multiple regression modelling, independent samples t-tests, and chi-square tests, classification to evaluate the financial, demographic, and scheme-related predictors of sanction decisions. The results indicate extremely high correlations between capital investment, working capital, and total proposed project cost, demonstrating structural consistency across DPR and sanction processes. Regression outputs confirm that total proposed cost significantly predicts sanctioned amounts, while working capital requirements exert a negative but significant effect. T-test results reveal a statistically significant gender gap in sanction ratios, favouring male entrepreneurs, though chi-square results show no categorical association between gender and sanction status. The study contributes empirical insights for policymakers by identifying financial, structural, and gender-related factors affecting sanction decisions, offering evidence-based recommendations to strengthen inclusive, sustainable, and resilient micro-enterprise entrepreneurship under PMFME.
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