Journal of Advanced Research in Entrepreneurship, Innovation and SMES Management

Banking and Microfinance: Main Functions, Mechanisms, Effects and Policy Implications

V Basil Hans — 2026-09-09

This article discusses the important role of banks in the evolution and extension of microfinance services for the enhancement of financial inclusion of the low-income communities. Banks are the critical intermediates in providing credit, savings, insurance and other financial services to individuals and small businesses that are not connected to the regular banking system. The paper examines the roles of banks in supporting microfinance firms in terms of funding, regulatory advice, technological infrastructure, and risk management methods. It also covers the role of microfinance in poverty reduction, women empowerment, rural development and entrepreneurship generation. But such development has not stopped microfinance from suffering from problems such as expensive operations, difficulties in recovering loans, restricted outreach and regulatory limits. The study concludes that more partnerships between banks, governments and microfinance institutions are necessary to achieve sustained financial inclusion and economic development.

Arihant Global: Can One Man's AI Experiment Scale to Serve a Million Micro-Entrepreneurs?

Dr. Trilok Kumar Jain — 2026-09-09

Micro-entrepreneurs play a pivotal role in driving inclusive economic development in emerging economies; however, they often face significant constraints related to market access, business intelligence, and scalability. This case study examines the initiative led by Rahuul Kumar Jain, founder of Arihant Global, a digital marketing agency and CPaaS (Communication Platform as a Service) provider specialising in performance marketing, lead generation, and automated customer communication solutions, which leverages Artificial Intelligence (AI) to provide scalable business advisory support to over thousands of micro-entrepreneurs in Rajasthan, India. By integrating AI-based tools for market feasibility analysis, export opportunity identification, and strategic decision-making, along with digital outreach strategies and intelligent communication platforms such as WhatsApp Business API and omnichannel engagement systems, the initiative demonstrates how technology can act as a force multiplier in resource-constrained environments. The case highlights the transformation of micro-enterprises into digitally enabled and growth-orientated ventures, while also uncovering critical challenges related to scalability, digital literacy, institutionalisation, and policy alignment. It presents multiple strategic options, including AI-driven platforms, hybrid advisory models, public–private partnerships, and ecosystem-based approaches. The study provides a rich context for analysing the intersection of AI adoption, entrepreneurship development, and inclusive growth.

This case contributes to the literature on digital transformation in SMEs by offering a practical, decision-orientated perspective on scaling AI-enabled entrepreneurial ecosystems in emerging markets. It is particularly relevant for policymakers, academicians, and practitioners seeking to design sustainable and inclusive models for micro-enterprise development.

An evidence-based look at the problems that Indian start-ups encounter

V Basil Hans — 2026-09-09

Exploring the Barriers to Industry 4.0 Technology Adoption among Indian MSMEs: A Literature Review

Vikram Bansal — 2026-08-03

Adoption of the Fourth Industrial Revolution, also known as Industry 4.0, is seen as a key initiative for manufacturing enterprises around the globe since it allows for an efficient and sustainable production eco-system. However, significant studies on Industry 4.0 readiness of Micro, Small, and Medium Enterprises (MSMEs) are unavailable. The phrase "Industry 4.0" is known as the fourth industrial revolution, which is characterized as a new phase of production in which numerous developing technologies intersect to produce digital solutions. Industry 4.0 was first introduced in Germany in 2011. Industry 4.0 includes applications of various new technological innovations in the manufacturing process like the Internet of Things, Industrial Internet, Smart Manufacturing, Cloud-based Manufacturing etc. The implementation of Industry 4.0 is crucial for today's manufacturing enterprises due to various benefits like cost reduction, optimization and customization. Moreover, the enterprises in today's era are shifting from mass production to customized production, which demands a high-cost efficiency and intelligent manufacturing ecosystem. Thus, companies all around the globe are hugely investing in digitalization, automation and intelligentization of machines. However, the adoption level of these technologies in Indian industries is significantly low. In this context, this paper aims to study the Industry 4.0 technologies in detail and assess the various challenges in implementing Industry 4.0 concept in the Indian Micro, Small, and Medium Enterprises (MSME) sector, which includes more than 63 million industries. The study critically evaluates the various Industry assessment models and classifications of Industry 4.0 technologies. Based on the analysis and literature, the study proposes a systematic approach for industries to implement Industry 4.0 technologies. As the topic of the study is, still in the initial stages of development this research takes an exploratory approach and relies on secondary data collected from various government websites, books, journal articles, and websites.