MSME FINANCING - FACTORS AFFECTING PROCUREMENT OF FINANCE - A STUDY WITH SPECIAL REFERENCE TO KOTTAYAM DISTRICT

Abstract

Micro, small and medium enterprises enjoy a distinct position in the socio- economic development of any nation; particularly a developing nation like India. In order to protect, support and promote micro, small and medium enterprises and to help them in availing finance, a number of protective and promotional measures have been undertaken. Inspite of all the impetus given the MSME sector is still limping its way into the economy. This study aims at analysing the various modes of MSME financing and the reach it gets in a district like Kottayam in Kerala. It considers if factors such as the educational qualification of the owner/ manager and size of the firm has any association on the procurement of MSME financing. The study concluded that educated entrepreneurs are more open to availing financing from MSME financing sources rather than traditional sources. Also, Small and medium entrepreneurs depend on government financing for MSME operations rather than micro units.