International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

 

Restructure Village Level Economic Aid to Promote Entrepreneurship
Jay K. Joshi

Abstract
Problem The microfinance industry in India has blossomed into a global model for economic sustainability projects seeking to provide aid. Yet, we see examples of poor follow-up and limited success in many regions. Village level economic aid has limited utility as it does not focus on creating a culture of entrepreneurship and business acumen. Villagers are often not instructed to spend the money in a meaningful manner, or are simply not aware on how to do so. Approach During March and April of 2011, village leaders and villagers were informally interviewed to discuss their approach and thoughts to microloan economic projects. Local setting The interviews were conducted in two separate regions of India: Dhajipur, Gujarat, and Sidhbari, Himachal Pradesh. Relevant changes Villagers in the regions interviewed are keenly aware of how such economic aid should be spent and utilized to maximize long term benefits. Inefficient, or even frivolous spending, was discouraged and refocused in a manner better suited to improving the villager’s economic utility. Lessons learnt Until the focus of such economic projects turns to improving the long term economic conditions, such projects will have limited utility. Creating a culture of acknowledged, responsible fiscal spending will improve the outlook of microloaning.

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