Financial Challenges And Support Of Government Initiatives Affecting The Micro, Small, And Medium Enterprises (MSMES)

Abstract

Purpose - MSMEs have enormous potential to assist India being developed nation by 2047 but faces numerous challenges. The study focuses on MSMEs' financial challenges and government initiatives to solve them.

Design/methodology/approach - Primary data from 103 Vapi-Gujarat MSMEs was used to identify key financing  and government initiatives issues and their relationships utilizing tests including validity-reliability, normality, Likert-scale, test of association, rank analysis, and correlation.

Findings - Major financial problems- Collaterals, high ROI, lengthy documentations, low debtor's turnover, poor infrastructure limits MSMEs' growth. Government is inadequate in addressing these issues due to major problems- scheme unawareness, lengthy compliances, and greater rejection rates.

Originality/value - The present study is unique and original as no such studies have been carried out on selected area, sample, and objective.

Research limitations/implications – Submission of research findings to government will grow MSMEs in the study area.

Practical implications - Based on findings, Government can focus more on scheme’s practical implications by raising awareness, easing out process, removing middleman etc.

Social implications - Resolving MSMEs' difficulties would progressively reduce unemployment accompanied increasing exports and providing innovative, high-quality goods and services at reasonable rates in society.