A STUDY ON CHALLENGES OF MSMEs IN AVAILING FINANCE FOR THE SUSTAINABILITY OF MSMEs_ AN EMPIRICAL ANALYSIS IN THE STATE OF ANDHRA PRADESH

Abstract

The micro small and medium enterprises in India reside in a central position in the designed industrialized improvement in the country. They not only recommend immediate huge employment but moreover recommend a practice of ensuring a further unbiased allocation of the public earnings. In addition they give support to an effectual movement of capital. The Planning Commission of India is furthermore attentive of the necessary task of small scale and cottage industries which has been reproduced in varied strategies and policies. However the cottage and small scale industries are sternly handicapped in several means. newlineNow a days the MSME operators are facing many problems specifically in availing the finance from different banking and non-banking res reported on newlinethe problems and prospects of the MSMEs in availing the finance. Furthermore the success rate of the concerned organizations is very low because of various factors and out of which availability of finance is the major reason. Different studies suggested that the lack of finance and refinance facility the budding organizations are shutting down. However this study mainly intended to disclose the factors affecting for availing the finance by the MSME operators. newlineThe study identified the major factors which effect the availing of finance by the MSME operators through many financial organizations. The study reveals that the factors such as, size of the firm, type of ownership, type of business, type of industry, tenure of business, procedural complications, lack of knowledge about finance schemes and difficulty in documentation are considered as the main factors in availing the finance for the MSME organizations. The study also determined that availing finance may lead to the sustainability of the organizations. Based on this philosophy the researcher developed a conceptual model and a questionnaire to gather the required information. newline