Abstract: In this research microfinance background is established to justify the selection of the subject. Aim of this research is to identify the underlying factors of microfinance in removing poverty from society. In this research explanatory research design is elected to answer the research question. Thai research is considered as a qualitative study which integrates different secondary sources to collect relevant information. Interpretivism research philosophy is chosen for this study to execute qualitative study. In this study data is collected from secondary sources where certain criteria are maintained. Specific themes are identified within the dataset to include relevant information in this study. Thorough discussion is made on the secondary findings which increases the strength of the study. Microfinance themes are identified which impacts the economic development of underdeveloped areas. A brief overview of the role of microfinance institutions has been illustrated in the process of entrepreneurial development. An overall explanation of the research findings has also been provided which can be beneficial in understanding the overall concept. The entire study has also been explained in a brief manner at the end for establishing its importance in the current era.

Keywords : Economic activities, Financial inclusion, Microfinance, Poverty, SDGs, Sustainable growth.