The article tries to find out the influence of microfinance on socio economic development among women entrepreneurs in Cuddalore district. Two objectives of this study were reached through proper methodology. Sample size was 60 in all obtained through convenience sampling technique in Cuddalore district. Researcher designed questionnaire is with 5 point scale in the continuum of agreeing. Reliability of this tool is 0.78 and 0.92. Path analysis was used for data analysis. The path analysis found that there is no influence of micro savings and motivation on socio-economic development of women entrepreneurs in Cuddalore district. The analysis also highlighted that there is influence of socio-economic development on social recognition of women entrepreneurs in Cuddalore district. Hence, it is concluded that the Microfinance institutions should provide motivational training to small business entrepreneurs on financial management skill, managerial skills in areas like negotiation skills, and business knowledge.

KEY WORDS: Microfinance savings, Motivation, Socio-Economic Development, Social Recognition, Path Analysis and Cuddalore District.