The Role of Micro finance in Encouraging Entrepreneurship among Students A conceptual study

Lohith Kumar .S & Padma Bhaskar Department of Management Studies (VTU) Dayananda Sagar College, Bangalore-65 Email: Lohith_005@yahoo.com Padmabhaskar0@gmail.com

Abstract
Microfinance is usually understood to entail the provision of financial services to microentrepreneurs and small businesses, which lack access to banking and related services due to the high transaction costs associated with serving these client categories. The two main mechanisms for the delivery of financial services to such clients are (1) relationship-based banking for individual entrepreneurs and small businesses; and (2) group-based models, where several entrepreneurs come together to apply for loans and other services as a group. An entrepreneur is an enterprising individual who builds capital through risk and/or initiative. In other words entrepreneur is a person who organizes and operates a business or businesses, taking on financial risk to do so. In the current day the emphasis is on more for a student to become a entrepreneur by starting up his own business rather seeking jobs. One of the biggest hurdles for any student for many students is getting that seed funding or investment to start their business. Usually cant approach Banks or others Financing organization because of lack of documentation and collateral required. In such a case we have found a link where Entrepreneur needs meets. The Student entrepreneurs need for funds to initiate business can be met by MicroFinance. The Study is a Conceptual Study aimed at finding out various opportunities available for Micro Finance. In our study we have made an attempt to Explain, what is micro-finance and innovative places where Micro Finance can function? There is a notion that Micro Finance is aimed or is useful only to the lower strata of the society. Our study tries to show case that the previous notion regarding Micro Finance is not true and Finance can also help in developing our society along with creating higher paying jobs. The Study is conducted in two different perspectives; one is from the Entrepreneurs perspective that creates jobs. But the Study also sees the opportunity that Micro Finance himself gets. The study clearly defines the importance and need for MicroFinance to enter field of funding Student Entrepreneurs and It also show cases the opportunity available to the Micro-Financer. The Study will explain various concepts such as Entrepreneurship, E-cell in colleges and Micro-Finance. It will explain regarding the working of E-cell in colleges and various advantages of the E-cell in Campuses.

Keywords: Micro-Finance, Entrepreneurship, Opportunities, E-Cell, relationship-based banking,

group-based models,