Exploring the Synergy between Financial Inclusion and Entrepreneurship Development – A Comprehensive Analysis of the Indian Landscape

Author: Neha Arora & Krishna Khanal

Issue: Spring Issue, 2024

Abstract

The present study intends to explore the relationship between financial inclusion and entrepreneurship development in India. Entrepreneurship development is essential for the economic growth of an economy. Financial inclusion by providing easy credit availability at affordable cost aids in entrepreneurship development. To measure the level of financial inclusion three basic parameters i.e., availability of banking services, penetration of banking services and usage of banking services is used. The level of entrepreneurship is measured through the number of new businesses registered per 1000 individuals of the age group 15 to 64. By employing multiple regression model, the study found a positive relationship between financial inclusion and entrepreneurship development in India. This finding underscores the significance of financial inclusion in not only aiding business initiation and expansion but also in catalyzing job creation, boosting economic growth, and alleviating poverty.