Microfinance support and challenges faced by women agri product manufacturers in Purba Bardhaman district of West Bengal

Introduction

Microfinance had emerged as an important instrument for promoting rural development, poverty alleviation, and women's economic empowerment in India, particularly among women engaged in small-scale agribusiness and value-added agricultural activities. In West Bengal, women increasingly participated in the manufacturing and marketing of agri-products such as pickles, papad, bakery products, dairy items, jute products, and processed food materials as a means of supplementing household income and improving livelihood security. However, inadequate access to institutional credit, limited financial resources, lack of technical knowledge, poor market linkages, and insufficient infrastructural facilities had constrained the growth and sustainability of these enterprises. In this context, microfinance institutions, Self-Help Groups (SHGs), and non-governmental organisations had played a significant role in providing financial assistance, savings facilities, training opportunities, and entrepreneurial support to rural women. Purba Bardhaman district of West Bengal had witnessed considerable participation of women in agriproduct manufacturing activities due to its favourable agro-economic conditions and active microfinance network. Despite the expansion of microfinance services, women agri-product manufacturers continued to face several operational, financial, marketing, and social challenges that affected their productivity and income generation capacity. Therefore, the present study was undertaken to examine the extent of microfinance support available to women agriproduct manufacturers and to analyse the major constraints faced by them in Purba Bardhaman district of West Bengal. The study also attempted to assess the role of microfinance in enhancing women's participation and economic stability in rural agribusiness activities.

Research Methodology

The selection of the district, block, villages, and respondents had been undertaken through a combination of purposive and random sampling techniques. Purba Bardhaman district of West Bengal had been purposively selected for the present investigation because a large number of women in the district were actively engaged in various agribusiness activities such as paddy and vegetable production, agarbatti making, kirana and bakery shops, papad and pickle making, www.extensionjournal.com fisheries, handicrafts, jute bag making, and dairy enterprises. The district also had a strong presence of microfinance institutions and Self-Help Groups (SHGs), which made it suitable for studying the impact of microfinance on women's participation in agribusiness activities. Furthermore, the favourable socio-economic and agro-climatic conditions of the district had supported its selection for the study. Among the 23 community development blocks of the district, Khandaghosh block had been selected purposively because it exhibited relatively high microfinance penetration along with certain areas having moderate to low access, thereby enabling a comparative assessment of the impact of microfinance on women's participation in agri-product related activities. A complete list of villages under the selected block had been obtained from the Block Development Office (BDO), and the villages had been arranged in ascending order according to the extent of women's engagement in agribusiness activities and SHG/microfinance operations. Out of the total 111 villages, five per cent, comprising six villages, had been selected randomly for the study. From each of the selected villages, updated lists of women engaged in agribusiness activities had been collected from the Block Development Office, SHG records, and Panchayat databases, clearly distinguishing SHG beneficiaries and non-beneficiaries. From the total eligible respondents, ten per cent had been selected randomly, of which five per cent consisted of SHG beneficiaries (75 respondents) and five per cent consisted of non-beneficiaries (75 respondents). Thus, a total of 150 respondents had been selected and categorised into two groups, namely beneficiary and non-beneficiary, for analytical purposes. Primary data had been collected through personal interviews with the help of a wellstructured schedule from both beneficiary and nonbeneficiary respondents associated with microfinance institutions, whereas secondary data had been obtained from magazines, published papers, books, journals, government records, the Block Development Office, and Krishi Vigyan Kendra (KVK). The collected data had been analysed using appropriate statistical tools, and the findings pertained to the agricultural year 2025-2026.

Analytical Tools

• Likert Scale: A Likert scale is a rating scale used to assess opinions, attitudes, or behaviors. To collect data, you present participants with Likert-type questions or statements and a continuum of possible responses, usually with 5 or 7 items. Each item is given a numerical score so that the data can be analysed quantitatively.

• Arithmetic Mean = ∑𝑋𝑖/N Garrett Ranking: Per cent position = 100 (Rij-0.5) /Nj obtained loans in the range of ₹15,001-25,000, indicating that this was the most common loan amount accessed by women for initiating or expanding their agri-product related enterprises. A smaller number of respondents (12) availed loans of less than ₹15,000, suggesting that some women started their activities with relatively small financial support. Only a few respondents obtained higher loan amounts, including ₹25,001-50,000 (5 respondents) and more than ₹50,000 (4 respondents). This distribution indicates that most women preferred moderate loan amounts that were manageable and suitable for smallscale business operations. 22) perceived the financial assistance as moderately adequate, suggesting that although the loan amount supported their activities, it was not fully sufficient for expanding their enterprises. Only a small proportion of respondents ( 4) considered the microfinance to be highly adequate, indicating that very few beneficiaries received financial support that fully met their business needs. Meanwhile, only one respondent reported that the loan amount was inadequate, which reflects that most respondents were generally satisfied with the level of financial assistance received. ) suggested increasing the loan amount for women entrepreneurs, as the existing loan size was considered insufficient for expanding business activities. A considerable proportion of respondents (64.00%) recommended simplifying loan procedures and documentation, which would make it easier for rural women to access financial services. Additionally, 58.67 percent of respondents emphasized the need for awareness and training programmes to enhance knowledge about microfinance schemes and financial management. More than half of the respondents (52.00%) suggested reducing interest rates on microfinance loans to make credit more affordable. Furthermore, respondents highlighted the need for faster loan approval (46.67%), improvement in financial literacy (41.33%), and strengthening SHG-bank linkage programmes (36.00%). Some respondents (30.67%) also recommended providing better market linkage and institutional support to improve business sustainability.

Results and Discussion

Conclusion

The study concluded that microfinance had played a significant role in promoting women's participation in agriproduct manufacturing activities in Purba Bardhaman district of West Bengal. The findings revealed that Self-Help Groups emerged as the most important and accessible source of credit for rural women entrepreneurs, thereby contributing substantially towards financial inclusion and livelihood enhancement. Most of the respondents had availed moderate loan amounts, which were mainly utilised for the purchase of raw materials, training, and expansion of www.extensionjournal.com business activities. The study further indicated that the majority of women considered the microfinance support to be adequate for sustaining small-scale enterprises and improving household income. The availability of microfinance had encouraged women to participate actively in income-generating activities, thereby strengthening their economic independence and decision-making capacity. However, several constraints continued to hinder the effective utilisation of microfinance services. Irregular income and repayment difficulties, high interest rates, lack of awareness regarding schemes, complicated documentation procedures, delay in loan sanction, and poor financial literacy were identified as major problems faced by women entrepreneurs. These constraints affected the growth, profitability, and sustainability of agri-product manufacturing enterprises. The respondents suggested increasing loan amounts, simplifying loan procedures, conducting awareness and training programmes, reducing interest rates, strengthening SHG-bank linkage programmes, and improving market support systems for better entrepreneurial development. Overall, the study highlighted that although microfinance had positively influenced the socio-economic condition of women agriproduct manufacturers, greater institutional support, policy intervention, financial literacy programmes, and efficient credit delivery mechanisms were essential for ensuring long-term sustainability, enterprise expansion, and rural women empowerment in the agribusiness sector.

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