Microfinance, or micro loaning and microcredit, began in the 1970s through the efforts of Bangladesh's Dr. Muhammad Yunus. He first issued small loans for poverty alleviation to the poor, particularly the womenfolk in rural areas. It thus rested upon the belief that poor people, particularly women, could be trusted to repay tiny loans, despite a lack of any traditional collateral. Yunus's vision brought into existence Grameen Bank in 1983, from which he brings examples for microfinance institutions around the globe. Since then this concept has surfaced all over the world with successful financial services saving, insurance, and credit becoming available for the disadvantaged sections that attain economic inclusion and development.

Microfinance can be termed as one of the most significant instruments for economic empowerment amongst low-income entrepreneurs in developing countries. Microfinance institutions have emerged as quite strong tools in extending credits to the marginalized communities and the deprived sections of society, particularly in India. This paper discusses the impact of microfinance on Indian entrepreneurs with an emphasis on the multi-dimensional developments of Utkarsh Bank, an MFI that has greatly expanded its micro-credit operation to the micro-entrepreneurs in rural and semi-urban regions. The study examines how the system of microfinance has an effect on its clients' growth, income generated from entrepreneurship, and finally its effects on social mobility. Positive growth in entrepreneurial success may be seen through the systems of microfinance at institutional levels, such as in Utkarsh Bank, though marred by high-interest levels and inexperience in financial management, may reach up for positive growth.