A Study on Trends and Insights Into Mudra Yojana Awareness

Abstract

Micro units, consisting of various small-scale activities, form the backbone of the Non-Corporate Small Business Sector (NCSBS) in India. This sector, however, grapples with several challenges, including a shortage of funds, limited access to equity capital, outdated technology, and weak institutional financial support. To address these issues, the Government of India launched the Pradhan Mantri Mudra Yojana (PMMY), a flagship initiative aimed at “funding the unfunded.” The scheme seeks to integrate micro enterprises into the formal financial system and provide them with affordable credit.
This study delves into the awareness levels among the general public and potential beneficiaries of the Mudra Yojana Scheme. It employs a multi-dimensional approach, incorporating quantitative analysis of awareness levels, qualitative insights from interviews, surveys of Mudra beneficiaries, the public in Bengaluru, and a review of government reports.
Key findings indicate an evolving awareness level among respondents, highlighting their current knowledge and the primary sources of information about PMMY. Notably, the study identifies friends and relatives as the dominant sources of awareness. The research also evaluates the effectiveness of government-led awareness campaigns and initiatives, uncovering gaps that need to be addressed for better outreach.
The insights from this research provide actionable recommendations for policymakers, financial institutions, and NGOs involved in implementing the Mudra Yojana Scheme. Enhancing awareness through targeted campaigns and leveraging innovative communication strategies could further strengthen the scheme’s impact and ensure broader financial inclusion for micro-entrepreneurs.