AWARENESS OF MICRO-FINANCE IN DEVELOPING ECONOMIES AND ITS IMPACT

Abstract

The growth in micro finance segment is mainly grounded on the hypothesis that the deprived possess the ability to achieve returns generating financial actions but are inadequate due to the deficiency of access and insufficient endowment of credit, savings and insurance conveniences. In this paper we will look into the aspect of micro-financing in Saudi Arabia and try and understand what role it can play in the overall development of the economy there. The research paper will focus mainly on the SMEs of Saudi Arabia Mainly new companies will be considered to identify the financial challenges faced by the entrepreneur in KSA. According to the survey it is observed, microfinance plays a crucial role in creating a diversified and flexible economy with effective participation of private sector in the economic development of the nation.