Does financial inclusion promote sustainable livelihood development? Mediating effect of microentrepreneurship

Abstract

Purpose

This study aims to investigate the impact of financial inclusion in promoting sustainable livelihood among indigenous women entrepreneurs. Moreover, the study has also examined the mediating role of microentrepreneurship between financial inclusion and sustainable livelihood.

Design/methodology/approach

Structure equation modeling has been used to analyze the mediating effect of microentrepreneurship between financial inclusion and sustainable livelihood development. In total, 598 samples of indigenous women across the Sundargarh and Mayurbhanj districts in Odisha are used for the statistical data analysis in the study.

Findings

The results showed that financial inclusion has direct and indirect effect on promoting sustainable livelihood among indigenous women. The results also highlighted that microentrepreneurship significantly mediates the relationship between financial inclusion and sustainable livelihood.

Practical implications

The Government of India should formulate policies on financial inclusion by reviewing the findings of this study. In addition, to increase the base of microenterprises and the achievement of sustainable livelihood in rural regions, more focus should be given toward the promotion of inclusive finance among indigenous women in India.

Originality/value

The present idea has not been discussed or explored earlier among the indigenous communities in the Indian context. So, the study will benefit the marginalized groups of women in promoting their livelihood sustainably.

Citation

Mahato, J. and Jha, M.K. (2023), "Does financial inclusion promote sustainable livelihood development? Mediating effect of microentrepreneurship", Journal of Financial Economic Policy, Vol. 15 No. 4/5, pp. 485-499. https://doi.org/10.1108/JFEP-05-2023-0134