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Sources of Finance

In: Financial Inclusion of the Marginalised

Author

Listed:
  • Sharit K. Bhowmik

    (Tata Institute of Social Sciences)

  • Debdulal Saha

    (Tata Institute of Social Sciences)

Abstract

Access to capital is an economic linkage between street trade and the economy as reflected in the study. It is the single most important factor that affects the vendors’ economic activities as well as their personal lives. Capital is needed for initiating the business and, later, for running and expanding the business. As is commonly known a rise in income is directly related to an increase in the standard of life. To raise income, level of investment needs to be raised which entails borrowing for the same. The informal sources of credit including the wholesalers, moneylenders, friends or even relatives have a vital role in their lives. In absence of formal institutional credit availability to vendors, they turn to these informal sources of credit during dire situations. This study also shows the extent of dependence vendors have on the moneylenders and wholesalers as compared to other informal sources of capital.

Suggested Citation

  • Sharit K. Bhowmik & Debdulal Saha, 2013. "Sources of Finance," India Studies in Business and Economics, in: Financial Inclusion of the Marginalised, edition 127, chapter 0, pages 61-71, Springer.
    • Handle: RePEc:spr:isbchp:978-81-322-1506-6_4
    DOI: 10.1007/978-81-322-1506-6_4
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