![Open Access](https://i-scholar.in/lib/pkp/templates/images/icons/fulltextgreen.png)
![Restricted Access](https://i-scholar.in/lib/pkp/templates/images/icons/fulltextred.png)
An Empirical Study of Key Factors Influencing the Performance of Micro Enterprises
India attain magnificent breakthrough in lifting its maximum population out of poverty. And out of diverse means of poverty alleviation, the most effective way is providing microfinance and promoting self employment and micro enterprise development. But micro enterprise development is varied in different states and as data depicts that in Malwa region of Madhya Pradesh (MP), it is not very impressive. With this objective this research is conducted to study the key factors influencing the performance of micro enterprises. And this study is unique in many aspects as it makes an effort to identify the issues of micro enterprises funded by microfinance providers. The mixed research method design is used and data is collected from 722 respondents of ten districts. Statistical tools like KMO and Bartlett's test and factor analysis are applied to extract the key factors. The findings revealed that the key factors which influence performance of micro enterprises are local business environment, high cost of inputs, management skills, lack of resources and marketing issues. Policy directions are that to develop conducive business environment and to launch awareness programme of schemes in which raw materials and other inputs are available at reasonable rates. Future direction for research is to do specific sector based study of micro enterprises funded by microfinance.
Keywords
Micro Enterprise, Poverty, Micro Entrepreneurs, Funding Institution, Microfinance.
User
Font Size
Information
- Ahmad, S. Z. (2012). “Micro, Small and Medium Sized Enterprises Development in the Kingdom of Saudi Arabia: Problems and Constraints.” World Journal of Entrepreneurship Management and Sustainable Development, Vol. 8 (4), pp 217-232.
- Aruna, N. (2015). “Problems Faced by Micro, Small and Medium Sized Enterprises- A Special Reference to Small Entrepreneurs in Visakhapatnam.” IOSR Journal of Business and Management, Vol. 17 (4), pp 43-49.
- Beck, T., Demriguc-kunt, A., & Levine, R. (2005). “SMEs Growth and Poverty CrossCountry Evidence.”Joumal of Economic Growth, Vol. 10 (3), pp 199-229.
- Carreira, C., and Silva, F. (2010). “No deep pockets: Some stylized empirical results on firms' financial constraints.” Journal of Economic Surveys, Vol.24 (4), pp 731 -753.
- Coad, A., & Tamvada, J. P. (2012). “Firm Growth and Barriers' to Growth among Small Firms in India.”Small Business Economics, Vol.39 (2), pp 383-400.
- Danish, A, Y., & Smith, H. L (2012). “Female Entrepreneurship in Saudi Arabia: Opportunities & Challenges.” International Journal of Gender & Entrepreneurship, Vol.4(3),pp216-235, http://doi.org/10.1108/17566261211264136.
- Das, K. (2008). “SMEs in India: Issues and Possibilities in times of Globalization.” ERIAProject 2007-05, pp 69-97, India.
- Hashani, M., & Pantina, M. B. (2014). “The business environment and Problems of Small and Medium Enterprises in Kosovo.” Iliria International Review Vol.l (3), pp 109-130.
- Karmarkar, K.G, (2008). “Microfinance Revisited- Rural Credit Today.” Micro finance In India. Sage Publication India Pvt. Ltd.,pp33 -54, ISBN 9780761936268.
- Miled, K. B. H., & Rejeb, J. E. B. (2015). “Microfinance and Poverty Reduction: A Review & Synthesis of Empirical Evidence.” Procedia- Social & Behavioral Sciences, Vol.l95,pp 705-712.
- Naidu, S., & Chand, A. (2012). “A Comparative study of the Financial Problems Faced by Micro, Small and Medium Sized Enterprises in the Manufacturing Sector of Fiji and Tonga.” International Journal of Emerging Markets, Vol.7 (3), pp 245-262.
- Naidu, S., & Chand, A. (2013). “Financial Problems Faced by Micro, Small and Medium Sized Enterprises in the Small Island States: A Case Study of the Manufacturing Sector of Fiji islands.” International Journal of Business Excellence, Vol.6(l),pp 1-21.
- Nichter, S., & Goldmark, L. (2009). “Small Firm Growth in Developing Countries.” World Development, Vol.37 (9),pp 1453-1464.
- Saini, A. (2014). “Problems and Prospects of MSME in India.” Coventry University, United Kingdom.
- Senapati, P. (2014). “Marketing of Small Business: A Case of Small Business in India. IOSR Journal of Business and Management, Vol. 16 (5), pp 08-11.
- Siddiqui, M. A. (2015). “Problems and Challenges of MSMEs in Telangana.” International Journal of Business Quantitative Economics and Applied Managemen Research, Vol. 1 (11), pp 54-66, ISSN 2349-5674.
- Singh, C., & Wadani, P. (2016). “Finance for Micro, Small and Medium Sized Enterprises in India: Sources and Challenges.” (working paper No.581) ADBI, Retrieved formhttps://www.adb.org/publications/finance-micro-small-and-mediumsized-enterprises-india-sources-and-challenges.
- Sussan, M. U., & Obamuyi, T. (2018). “The Impact of Microfinance Bank on Entrepreneurship Development in Nigeria.” Journal of Business and Economic Development, Vol.3 (2),pp51-61.
- UNIDO (2003). “Apath out of Poverty: Developing Rural and Women Entrepreneurship”. 22843.en, UNIDO, Vienna.
- Vereshchagina, G., andHopenhayn, H. A. (2009). “Risk taking by Entrepreneurs.” American Economic Review, Vol.99 (5), pp 1808-1830.
- Yartlay, C. A. (2011). “Small Business Finance in Sub Saharan Africa: the case of Ghana.’’Management Research Review, Vol.34 (2),pp 172-185.
- https://msme.gov.in/ sites/default/files/MSME-AR-2017-18/ 24/10/18
- http://dcmsme.gov.in/data-stat.htm/24/10/18
- http://www.eria.org /SME%20in%20Indialssue%20 26/10/18.
- https://www.rbi.org.in/scripts/NotificationUser/26/10/18
- www.mospi.gov.in/central-statistics-office-cso-0
![](https://i-scholar.in/public/site/images/abstractview.png)
Abstract Views: 174
![](https://i-scholar.in/public/site/images/pdfview.png)
PDF Views: 120