Micropreneurship's Impact On Kandhamal's Rural Development: An SEM Analysis

Abstract

It is especially important for places that are confined by low resources to have micropreneurship since it acts as a vital catalyst for rural economic change. The Kandhamal District in Odisha serves as the focal point of this research project, which analyses the function that it plays as a mediator in the interaction between social capital, financial inclusion, personal empowerment, and rural development. This study makes use of Structural Equation Modelling (SEM) to conduct an analysis of primary data collected from members of Self-Help Groups (SHGs) who are participating in micro-enterprise activities. The purpose of this research is to investigate the effect that access to financial and business resources, social capital, and personal empowerment have on the growth of microentrepreneurship, as well as the subsequent impact that this growth has on the economic development of rural areas. The findings demonstrate that the availability of financial resources and social capital are key contributors to the expansion of microentrepreneurship, which in turn improves the economic results in rural areas. Personal empowerment, on the other hand, does not demonstrate a mediating influence that is statistically significant, which highlights the fact that structural and institutional variables are more prevalent. The purpose of this research is to provide significant policy insights by incorporating thoughts on social capital and financial inclusion into the larger debate on micropreneurship-driven rural development. The development of powerful community networks, the enhancement of financial literacy, and the expansion of credit accessibility are all ways that rural communities may generate sustainable economic prosperity.