Research on women’s labor in the informal sector largely tends to focus on the ex-ploitation of women through intense and prolonged physical work, extra work hours, wage disparities, work irregularities, and financial insecurity. With respect to micro-finance in particular, the question has often been about whether microfinance initiatives work to empower women and redress gender inequalities. In line with previous scholarship on the complex and contextual nature of power, this paper takes a mi-cro-level perspective, focusing on the specific reasons that push women into the informal sector and their strategies to deal with everyday challenges. We draw from an ethnographic study of women working in Kudumbashree, a women’s empowerment program in Kerala that helps women start microenterprises supported by microcredits. Our research found that Kudumbashree tends to privilege women who can make the most of opportunities to work from or near the home. Setting up a workspace from home or working near the house is important for the flexibility it provides women by allowing them to earn without compromising their everyday family responsibilities. Additionally, working in an all-woman environment in a familiar neighborhood is advantageous. This paper draws on the findings of an ethnographic study to unpack the concept of vulnerability. Within the heteronormative family structure, vulnerability emerges as a complex phenomenon that is negotiated. On the one hand, informal work is often viewed in terms of the exploitative working conditions and gender discrimination in society. On the other hand, despite the less-than-ideal working con-ditions, by becoming an earning member of the family, over time, women are able to establish relationships beyond the family, thereby improving their access to resources and networks. When seen from the perspective of wellbeing, then, con-textualized in the specific locations of women, we find that microfinance initiatives such as Kudumbashree enable women to negotiate their challenges and attenuate their vulnerabilities through the development of strategies, networks, and resources in solid-arity with others. © 2022, Research Institute of Asian Women. All rights reserved.