Effect of Bank Credit on the Business Performance of Unorganised Event Management Firms in Salem District

Abstract

The unorganised event management sector comprises a significant portion of the overall event industry in India. These are small businesses that provide event planning and management services. These firms operate without proper structure or organisation, making it difficult for them to compete with larger organised firms. However, unorganised event management firms have strengths that allow them to provide services to clients that organised firms may not be able to provide. Though, due to the lack of proper infrastructure, stiff competition and financial support, many event organisers operating in the unorganised sector face various challenges. The banks can play a vital role in supporting these event organisers by providing them with financial assistance and other services. This study investigates the effect of bank credit on the business performance of unorganised event management firms. The study covers 230 unorganised event organisers from the Salem district. The qualitative data were collected by using a well-crafted questionnaire. The study result proved that bank credit has significantly influenced the business performance of event management firms. Event organisers are satisfied with their business performance. Moreover, bank credit has substantially influenced business performance in developing a capacity to conduct multiple events simultaneously, business growth, return on investment, profitability, competitive advantage, purchase of new equipment and adoption of recent technology. The study recommended that banks should frame adequate policies to support small business firms to access bank credit without any hindrance. Hence, to face challenges, event management firms should invest in proper organisational structure, recruit experienced professionals, and implement efficient planning and execution processes. This will help them to deliver successful events and build a positive reputation in the industry.