Adoption of the Pradhan Mantri Mudra Yojana (PMMY) among Young Entrepreneurs

Entrepreneurship has become a major driver of economic development, innovation, and employment generation in India. However, one of the major challenges faced by young entrepreneurs is limited access to institutional finance due to inadequate collateral, lack of credit history, and insufficient financial awareness. To address these challenges, the Government of India launched the Pradhan Mantri Mudra Yojana (PMMY) in 2015 with the objective of providing collateral-free loans to micro and small enterprises operating in the non-corporate and non-farm sectors. The present study examines the adoption of the Pradhan Mantri Mudra Yojana among young entrepreneurs and identifies the factors influencing its adoption while assessing its impact on entrepreneurial development. The study adopts a descriptive research design to analyze the perceptions and experiences of young entrepreneurs regarding the PMMY scheme. Primary data were collected from 150 young entrepreneurs through a structured questionnaire using a convenience sampling technique. Secondary data were gathered from government reports, research articles, journals, books, and official websites related to PMMY and entrepreneurship development. The collected data were analyzed using statistical tools such as percentage analysis, mean and standard deviation, Chi-square test, correlation analysis, and multiple regression analysis with the help of SPSS software. The findings reveal that awareness, financial literacy, ease of loan accessibility, digital banking services, government support, and simplified loan processing procedures significantly influence the adoption of PMMY among young entrepreneurs. The study further indicates that entrepreneurs who availed themselves of PMMY loans experienced improvements in business establishment, business expansion, income generation, and employment creation. Statistical analysis confirms a significant positive relationship between awareness and PMMY adoption, while regression analysis identifies awareness and ease of loan accessibility as the strongest predictors of adoption. Despite the positive outcomes, respondents reported challenges such as delays in loan approval, documentation requirements, and limited post-loan mentoring. The study concludes that PMMY has played a vital role in promoting financial inclusion and encouraging youth entrepreneurship by improving access to formal credit. Strengthening financial literacy initiatives, simplifying loan procedures, enhancing digital banking infrastructure, and providing continuous entrepreneurial support can further improve the effectiveness of the scheme. The findings of this study provide valuable insights for policymakers, financial institutions, and entrepreneurship development agencies in designing strategies to increase the adoption of PMMY and promote sustainable entrepreneurial growth among young entrepreneurs in India.