From Small Beginnings to Big Impact: The Journey of Nano Entrepreneurs

Stories from the field

There is great transformative power in providing formal loans for India's nano entrepreneurs.?

• Ambika and her husband expanded their small temple goods store in Bhubaneswar.
• Mahalakshmi’s tailoring business in Bangalore is thriving.?
• For Shyam, securing formal credit was a game-changer—it not only kept his small shop afloat but also brought him closer to owning a home.?

These inspiring stories are just a small sample of India's 11 million nano entrepreneurs.

Credit to nano entrepreneurs drives real impact

These small businesses are the heartbeat of India’s local economies, driving growth and creating jobs. However, they often face challenges in accessing formal credit. According to a study by LEAD, providing tailored credit solutions has led to impressive improvements in turnover, profitability, and digital adoption among nano enterprises. This often results in formalization and an increase in female employment. Sharon Buteau from LEAD at Krea University shares more about these impacts in her blog.

The demand for credit is huge and needs multiple solutions

Nano enterprises have a credit demand of ?2 trillion, with many relying on informal sources to meet their needs. Addressing this challenge, innovative financial models, advanced underwriting technology, and supportive regulatory frameworks can unlock formal credit for these entrepreneurs. The foundation’s Debobroto Das wrote about one solution here.?

Partnering for Impact

We’re supporting our partners to scale solutions resulting in easy access to credit for nano entrepreneurs. By expanding access to financial services, we can help these small businesses prosper and while also boosting the Indian economy.

Read more about how unlocking credit for nano entrepreneurs can drive economic resilience, create jobs, and support local economies in this Business Today article.

Simplifying and Customizing Credit for Nano-entrepreneurs

?Nano entrepreneurs are the backbone of local commerce and important for job creation, yet they often struggle with high-risk perceptions from traditional banks, leading to a ?2 trillion credit demand mostly met through informal sources.

“To support small businesses, we need tailored solutions like smaller loans and efficient digital services, combined with thorough checks and personal support. Experts predict 80% of merchants will use digital payments by 2026, simplifying loan offers based on cash flow,” says Rakesh Goyal, Director, India Programs, Michael & Susan Dell Foundation. Read the detailed insight on our website here.?

Empowering nano entrepreneurs with accessible credit and digital tools is key to driving economic growth and financial inclusion in India's evolving market. Together, we can build a future where every nano entrepreneur in India thrives, fueling the nation's aspirations for inclusive and sustainable growth.