Indian Micro, Small And Medium Enterprises Research Articles

COVID-19’s Effect on Indian MSMEs: Insights from Stakeholders

Indian MSME (Micro, Small and Medium Enterprises) sector, an invaluable employment generator with a cluster of more than 63 million enterprises, is deeply dented by the noxious coronavirus. The second most significant sector of the Indian economy regarding employment creation is in jeopardy after the Covid-19. The sudden abject degradation of performance and eventual threat to the existence of MSME not only captivates the attention but also sets in disquietude in mind to fathom the inherent causes of this fragility and excogitate the ways and means of saving them. Against this background, proper diagnosis of the effect of Covid-19 on MSMEs is inevitable. The analysis is based on Qualitative as well as secondary data. Qualitative data has been collected through semi-structured interviews with 48 MSME stakeholders selected by Judgmental Sampling. The research finds significant challenges before MSME that must be tackled to salvage the industry from an imminent existential threat. The paper recommends the adoption of Industry-4.0 and the closure of gaps identified in the paper to give saving breath to the financially beleaguered and faltering sector. During the last few years, Covid-19 has grabbed literature positioning galore, but they are not specific to Indian MSME. This study is an attempt to gauge the obstacles, measures and gaps faced by Indian MSME post COVID scenario.

Access to finance and its impact on operational efficiency of MSMEs: mediating role of entrepreneurial personality and self-efficacy

PurposeThe present study aims to investigate the factors of loan access that affect entrepreneurial self-efficacy (ESE) and operating efficiency of Indian Micro, Small and Medium Enterprises (MSMEs). Furthermore, the study intended to investigate the influence of ESE on the operating efficiency of Indian MSMEs and its mediating role.Design/methodology/approachIn this study, exploratory research design is used. The study heavily relies on the primary data which has been collected by using the survey research method from a cross-section of 617 women-owned MSMEs, located in urban, rural, suburban and exurban areas of Haryana, Uttarakhand, Himachal Pradesh and NCR-Delhi. The partial least square structural equation modeling method version 3.3.3 has been used to evaluate.FindingsIn terms of the selected factors affecting access to finance, it has been established that the Loan Formalities, Banking Process, Loan Process, Staff Responsiveness and Incentive Scheme have a positive and significant influence in enhancing accessibility to finance and improving the self-efficacy and operating performance of firms. The findings also show that ESE mediates the relationship between various factors of loan access and the operating efficiency of MSMEs.Research limitations/implicationsThe study’s findings show that entrepreneurial capacity is significantly and favorably impacted by attitudes toward entrepreneurship, ESE, perceived access to findings and business operations. It has also been demonstrated that entrepreneurial intentions are strongly and favorably influenced by entrepreneurial ability to access commercial bank financing for small businesses and the impact of the same on the women-owned MSMEs in India. It also revealed unfavorable loan terms, limited collateral, fear of repaying of loan and intricate loan application were among the many reasons for loan denial.Originality/valueThe study offers a comprehensive approach that simultaneously considers financial accessibility and ESE. This all-encompassing method offers a thorough grasp of the variables affecting MSMEs' operational efficiency (OE). In contrast to earlier research that might have concentrated only on direct relationships, this study explores the mediating mechanisms involved. This study examines how ESE modulates the influence of financing availability on OE, providing a comprehensive understanding of the underlying mechanisms. By taking into account particular MSME sector characteristics like size, industry or regional variations, the study may provide a unique contextual lens. Understanding how these contextual factors interact with entrepreneurial attributes and access to finance adds depth to the analysis.

Digital finance and MSME performance in India: evidence from World Bank Enterprise Survey data

PurposeThe impact of digitalisation on smaller firms remains sparsely studied across emerging economies. The paper aims to examine the relationship between digital adoption and multiple performance parameters of micro, small and medium enterprises (MSME) in a prominent emerging economy.Design/methodology/approachThe study employs data from the World Bank Enterprise Survey (WBES) 2022, capturing 9,024 Indian MSME firms spread across the country. Performance indicators are derived from growth in sales, employment and labour productivity (LPROD). Multiple regression estimates are derived that also correct for sample selection bias using Heckman’s two-step process.FindingsDigital proliferation is found to increase as firms mature up in terms of age, size and constitution. A significant difference could also be observed in business performance across digital and non-digital businesses, with sales growth (SG) and productivity higher for digital firms. Digital financial variables are found to have a significant impact on SG but not as much in the case of employment growth and LPROD. The results are robust to correction for sample selection bias in digital adoption using inverse mills ratio (IMR).Practical implicationsThe study highlights digital adoption gaps across various strata of MSMEs, highlighting lower adoption when firms are younger, smaller and lacking formal constitutional setup. Digital variables indicating positive association with SG highlight the need for concerted efforts at the public policy level for building appropriate skills and infrastructure for micro and small enterprises to boost their digital adoption to promote growth.Originality/valueThere is a lack of micro-level empirical evidence measuring the impact of advanced digital technology usage on multiple aspects of enterprise performance amongst micro and small firms. The study deploys unique digital variables including TReDS and use of online credit applications to assess the impact on business performance. The findings provide insights for practice and public policy, besides making the case for a higher focus on launching digital initiatives for smaller enterprises.

Financial Empowerment of Micro, Small, and Medium Enterprises through Trade Receivables Discounting System: A Conceptual Analysis

A vibrant Micro, Small, and Medium Enterprises (MSME) sector is fundamental for ongoing development in both advanced and emerging economies. MSMEs are significant employment providers, particularly in OECD countries, employing around two-thirds of the formal workforce. In India, MSMEs play an important role in the economy by fostering entrepreneurial culture, innovation, and job creation. They are well-distributed across various economic sectors, catering to domestic and international markets. As of November 2021, India had approximately 63.38 million MSMEs, with significant portions in manufacturing and trading, contributing about 29% to India's GDP. Despite their economic importance, MSMEs face significant challenges in securing financing, particularly working capital. Compared to larger businesses, MSMEs have higher capital intensity per unit of revenue due to limited internal cash reserves, making timely access to affordable finance essential. Liquidity issues, primarily due to delayed payments from corporate buyers, exacerbate these challenges. The Reserve Bank of India introduced the Trade Receivables Discounting System (TReDS) in 2014 to address these issues by facilitating the financing of MSME trade receivables from corporate buyers through multiple financiers. This study examines the condition of MSMEs in India, their economic significance, and their financing challenges, with a particular focus on the TReDS e-discounting platform. The study updates the literature by detailing the TReDS process, presenting recent data on its growth, and identifying current challenges.

What drives the adoption of digital technology in the micro, small, and medium enterprises sector in a developing economy?

PurposeThis study aims to explore the determinants of digital technology adoption within micro, small and medium enterprises (MSMEs) operating in a developing economy. Grounded in the theoretical frameworks of fit-viability and task-technology fit models, this study investigates the impact of environmental fit, task-technology fit and viability on the intention to adopt digital technologies among MSMEs.Design/methodology/approachThis study validates the theoretical model using structural equation modeling, using data collected from 280 experienced respondents employed in the MSMEs in India.FindingsThe results indicate that both functional and symbolic benefits positively impact managers’ intention to adopt digital technology. However, subgroup analysis reveals that in the case of service enterprises, only functional benefits have a positive influence on managers’ intention to adopt digital technology. In addition, the findings underscore the crucial role of viability in shaping the intention to adopt digital technologies among MSMEs. This study highlights how functional and symbolic benefits motivate digital technology adoption in MSMEs.Originality/valueThere is a dearth of empirical studies investigating the factors influencing the adoption of digital technology by MSME firms, especially within the context of developing economies and specifically within the MSME domain. This study contributes to the theoretical discussion surrounding digital technology adoption among MSMEs in India. Through empirical research, it expands on the fit-viability model and formulates a technology adoption model within the MSME context.

EXPLORING THE INTERPLAY OF ENTREPRENEURS' AWARENESS, PERCEPTION AND INTENTION IN DRIVING DIGITALIZATION FOR MSMES: A FOCUSED INSIGHT INTO SIDBI'S ROLE

Business dynamics have undergone a remarkable transformation in recent years, primarily driven by the digital revolution. Micro, Small, and Medium Enterprises (MSMEs) are recognized as the cornerstone of economic growth and development, and their adaptability to this digital era is paramount.This empirical investigation explores the complex relationship between entrepreneurs' awareness, perceptions, and intentions and their influence on the adoption of digitalization, with a focus on the digital initiatives of the Small Industries Development Bank of India (SIDBI), which aims to transform MSMEs digitally. Various constructs, such as entrepreneurs' awareness, perceptions, and intentions, are used to evaluate digital adoption in small businesses. By examining entrepreneurs' levels of awareness, perceptions, and intentions, we aim to uncover the fundamental factors that shape their strategic choices regarding digital adoption.This study employs structural equation Modeling (SEM) through AMOS and adopts an explanatory survey method. It involved engaging Indian MSMEs with a total of 300 participants. Of these, 220 successfully submitted fully filled-out questionnaires through Google Forms.It is noteworthy that the examination of the research model revealed promising results by meeting the thresholds of CFI, RMSEA, and other similar measures. Findings reveal that entrepreneurs' awareness and intention positively influence digital adoption in MSMEs, whereas entrepreneurs' perception has no significant influence on digital adoption in MSMEs.This study has significant practical implications for policy formulation, entrepreneurial decision-making, collaborative efforts, risk mitigation, and future research directions in the context of digitalization within the MSME sector.

An Outlook on Role of Open Credit Enhancement Network in India’s Digital Lending: MSMEs

The micro, small, and medium enterprises (MSME) sector of India is a key source of generating employment and entrepreneurship there by contributing to the country’s economic and social development. Despite all these features, MSMEs struggles to access credit for financial requirement and the credit demand gap is increasing year after year. To meet such credit demand, Indian Government has launched the Open Credit Enablement Network, or OCEN, a step to move towards democratization of credit and financial inclusion. The present study throws light on the need for OCEN and the role of OCEN in digital lending ecosystem of MSMEs in India. The paper also discusses the challenges and the opportunities for OCEN in the financial inclusion status of the economic system.

Artificial intelligence-based reverse logistics for improving circular economy performance: a developing country perspective

PurposeReverse logistics services are designed to move goods from their point of consumption to an endpoint to capture value or properly dispose of products and materials. Artificial intelligence (AI)-based reverse logistics will help Micro, Small, and medium Enterprises (MSMEs) adequately recycle and reuse the materials in the firms. This research aims to measure the adoption of AI-based reverse logistics to improve circular economy (CE) performance.Design/methodology/approachIn this study, we proposed ten hypotheses using the theory of natural resource-based view and technology, organizational and environmental framework. Data are collected from 363 Indian MSMEs as they are the backbone of the Indian economy, and there is a need for digital transformation in MSMEs. A structural equation modeling approach is applied to analyze and test the hypothesis.FindingsNine of the ten proposed hypotheses were accepted, and one was rejected. The results revealed that the relative advantage (RA), trust (TR), top management support (TMS), environmental regulations, industry dynamism (ID), compatibility, technology readiness and government support (GS) positively relate to AI-based reverse logistics adoption. AI-based reverse logistics indicated a positive relationship with CE performance. For mediation analysis, the results revealed that RA, TR, TMS and technological readiness are complementary mediation. Still, GS, ID, organizational flexibility, environmental uncertainty and technical capability have no mediation.Practical implicationsThe study contributed to the CE performance and AI-based reverse logistics literature. The study will help managers understand the importance of AI-based reverse logistics for improving the performance of the CE in MSMEs. This study will help firms reduce their carbon footprint and achieve sustainable development goals.Originality/valueFew studies focused on CE performance, but none measured the adoption of AI-based reverse logistics to enhance MSMEs’ CE performance.

Cost-Effective digital twin Design for entertainment Enterprise’s through Machine learning

The backbone of the Indian economy, Micro, Small, and Medium Enterprises (MSME) players provide rural residents with steady income and long-term employment possibilities. Due to antiquated machinery, ineffective procedures, outdated manufacturing and business methods, and a severe lack of funds to cover their capital and operating costs, Indian MSME operators are finding it difficult to thrive in the cutthroat market of today. Small and medium-sized enterprises (SMEs) mistakenly believe that the industry 4.0 ecosystem, which encompasses numerous developing technologies, is exclusively intended for larger corporations. However, SMEs can effectively leverage these technologies to tackle their operational difficulties. This research study offers a unique, purpose-built Industry 4.0 solution to help MSME participants in the Software as a Service (SaaS) model save maintenance costs. With just monthly operating costs, this system provides a scalable and incredibly economical approach that does not require any capital expenditures. This solution includes emerging technologies such as IoT, cloud, analytics, and mobile applications. This solution has been implemented in three MSME businesses from Chennai, India and achieved 84% decrease in maintenance cost.

Measuring the impact of information and communication technology investment on the profitability of Indian manufacturing MSME

PurposeThis study aims to investigate the impact of information and communication technology (ICT) investment on the micro, small and medium enterprises (MSME) profitability in the Indian context.Design/methodology/approachThis study used a framework based on the ICT investment and firm size, measuring the impact on profit before depreciation, interest, tax and amortisation of MSME by taking a random sampling of 300 Indian MSME manufacturing firm’s secondary data from the Prowess database. This framework was analysed using the design of experiment (DoE) technique.FindingsThe study showed that ICT investment has a significant positive relationship with profitability. This study examines the different ICT investment levels to predict investment strategies and fine-tune profit targets. The critical finding is that ICT investment maximises profit at one million rupees. This discovery aids MSME leaders’ sustainable business decision-making.Research limitations/implicationsThis study has an explicit limit to the Indian context, where the firm requirements of countries are different, and these findings need to be validated with many operating variables and applied to more firms with more data. Even so, as a theoretical implication, this study took a novel approach to ICT adoption (through ICT investment) in the Indian MSME sector with guiding levels of ICT investment for each type of firm (i.e. micro, small and medium). This study opens new avenues for investigating researchers and stakeholders by exploring other factors responsible for ICT adoption.Practical implicationsThis study uniquely provides practitioners with the functional level of ICT investment for MSMEs in the Indian context. These finding guides top management to make strategic ICT adoption decisions with information symmetry. At the same time, these findings suggest financial institutions astern their credit programme to provide credit for ICT investment in MSMEs.Social implicationsThis study highlights the value of ICT as a practical resource for business owners that significantly makes MSMEs more informed and profitable, thus creating more jobs and incrementing the country’s gross domestic product (GDP).Originality/valueThis study offers unique empirical findings on how decision makers in MSMEs maximise profits through optimal ICT investment levels depending upon the firm size in an emerging economy like India. There is evidence in the study to conclude that ICT is a need of MSME and has implications for firm performance.

An Integrated Model to Prioritize the Strategies for Women Entrepreneurship Development to Overcome Its Barriers: Case of Indian MSMEs

Women entrepreneurs play a vital role in strengthening the economic growth and social development of the country. The government of India has also emphasized women's entrepreneurship (WE) development in the country's micro small and medium enterprises (MSMEs), but the presence of external and internal hurdles makes it difficult and lowers the success rate. Most importantly, to increase WE development in India, robust and adaptable strategies are required to unlock these barriers. This article presents an integrated decision framework to accelerate WE development in Indian MSMEs. The article utilized an integrated model based on fuzzy AHP and fuzzy TOPSIS to prioritize the strategies for WE development to overcome these barriers. The results of the analysis identified that individual–familial barriers, infrastructure barriers, and policy and legal barriers are the top three critical categories of the barriers that constrain WE development in India. And strategy S17, i.e., government support and motivation for weaker parts, is the most influential strategy in overcoming these barriers, whereas strategy S18, i.e., the ability to innovate and be creative, is ranked last. The findings of the article could be used by policymakers, strategists, and relevant stakeholders to reduce WE development barriers and encourage WE development culture in a growing number of MSME businesses.

Investigating successful Government Digital Economic Framework Adoption in Indian MSMEs: The Interplay of Perceived Organisational E-Readiness and Intention to Adopt

The digital economy is growing in India. At the same time, the digital shadow economy is also growing. Economists and intellectuals warn that the digital shadow economy threatens the global economy. If left unchecked, it could hinder a country's social and economic development. This study analyzed the success factors that enable Indian micro, small, and medium enterprises (MSMEs) to adopt the Indian government's Digital Economic Framework (GDEF) to prevent the growth of digital shadow economy (DSE). The study looked at the relationship between the government's intention to create a digital framework and successful adoption. In addition, the latent elements affecting the organizational and external readiness of Indian MSMEs, the intention to adopt the GDEF, and the successful adoption were examined. Finally, the study examined whether the intention to adopt GDEF influences Indian MSMEs' organizational preparation and effective adoption. In this quantitative study, 372 managers of MSMEs were surveyed. The results of the study show that market forces, government support, and supplier industry support significantly influence the propensity of Indian MSMEs to adopt the GDEF compared to organizational readiness. In contrast, the organizational preparation of the Indian MSME, comprising awareness, human resources, and top management commitment, had little impact on the GDEF adoption. This study also found a partial mediating relationship between Indian MSMEs' internal readiness and effective adoption. The study's findings can be used by policymakers, governments, and international organizations to strengthen or create e-business-enabling strategies and policies to safeguard their traditional economies against threats posed by the digital economy.

Aligning sustainability goals of industrial operations and marketing in Industry 4.0 environment for MSMEs in an emerging economy

PurposeIt is crucial for the Indian micro, small and medium enterprises (MSMEs) to implement a few of the most important Industry 4.0 (I4.0) technologies and reap maximum benefits of sustainability. This paper aims to prioritize I4.0 technologies that can help achieve the sustainable operations and sustainable industrial marketing performance of Indian manufacturing MSMEs.Design/methodology/approachI4.0-based sustainability model was developed. The model was analyzed using data collected from MSMEs by deploying analytic hierarchy process and utility-function-based goal programming. To have a better understanding, interviews were conducted.FindingsPredictive analytics, machine learning and real-time computing were found to be the most important I4.0 technologies for sustainable performance. Sensitivity analysis further confirmed the robustness of the results. Business-to-business sustainable marketing is prioritized as per the sustainability need of operations of industrial MSME buyers.Originality/valueThis study uniquely integrates literature and practitioners’ insights to explore I4.0’s role in MSMEs sustainability in emerging economies. It fills a research gap by aligning sustainability goals of industrial buyers with suppliers’ marketing strategies. Additionally, it offers practical recommendations for implementing technologies in MSMEs, contributing to both academia and industry practices.

Analyzing critical success factors of Lean Six Sigma for implementation in Indian manufacturing MSMEs using best-worst method

PurposeThis study aims to identify, analyze and rank the critical success factors (CSFs) of Lean Six Sigma (LSS) implementation in Indian manufacturing sector based micro, small and medium enterprises (MSMEs). This study provides critical insight for managers and researchers aspiring for successful implementation of LSS in Indian manufacturing MSMEs.Design/methodology/approachThe CSFs were extracted from literature followed by a questionnaire-based survey from 120 industry professionals with extensive knowledge and experience about LSS working in Indian manufacturing MSMEs. Further, the CSFs were grouped based on their fundamental relevance and ranked using best worst method (BWM) approach using inputs from LSS experts.FindingsThis study provides insights on success factors that have helped Indian manufacturing MSMEs to implement LSS. The findings signify that “Strategy based CSFs” were ranked as the top most important factors, followed by two other category factors namely “Bottom-Line CSFs” and “Supplier based and other category-based CSFs”.Research limitations/implicationsThe proposed research is specifically relevant to the context of MSMEs in the Indian manufacturing sector. In the future, the same approach can be extended to a global context, encompassing service sector-based MSMEs in healthcare and finance.Practical implicationsThis study provides valuable inputs for managers, decision-makers, industrial practitioners and researchers about Indian manufacturing MSMEs. The identified CSFs and their prioritization offer a roadmap for successful adoption of LSS. Managers can allocate resources, and make strategic decisions based on the prioritized CSFs. Decision-makers can align their initiatives with the identified CSFs. Industrial practitioners gain insights to enhance their LSS initiatives, and researchers can focus their efforts on areas critical to LSS implementation in Indian MSMEs. Furthermore, the structured approach employed in this study can be adopted by various MSME sectors globally, thereby broadening the comprehension of LSS implementation.Originality/valueThis study contributes to the existing body of knowledge by addressing the gaps in literature on CSFs related to LSS adoption within Indian manufacturing MSMEs. While LSS has been widely studied, there is limited focus on its adoption in the context of Indian MSMEs. The combination of extensive literature review, questionnaire-based survey and the application of the BWM approach for prioritizing CSFs adds originality to the research.

Evaluation of Technological Innovation Initiatives for Indian MSMEs Using the Fuzzy-Based Model

Micro, small and medium enterprises (MSMEs) are considered as a growing sector of the country due to their huge growth potential and possible social or economic effect, especially on employment and revenue generation. Existent globalised competition compels companies to constantly look for methods to improve their products and services. Without continuous innovation, manufacturing companies cannot remain competitive. Innovation represents the keyways the organisation responds to technical or market-related challenges. All manufacturers are currently trying to implement Multicriteria Decision-Making (MCDM) techniques such as Analytic Hierarchy Process, Piecewise Affine and fuzzy models, along with technology innovation initiatives (TIIs) for enhancing their production performance. In the current study, an attempt is made to assess the synergy fit of TIIs for MSMEs in India. The study considers metrics related to these initiatives, such as product performance and sales performance. In addition, these procedures use the MATLAB Fuzzy Logic Toolbox for the analysis of a Simulink block for designing and simulating the data set.

Growth of Micro, Small and Medium Enterprises (MSMEs) in India and its Role in Indian Economy

Through business innovations, Micro, Small, and Medium Enterprises (MSMEs) have made major contributions to the expansion of entrepreneurial endeavors. MSMEs are expanding their sphere of influence across the economy, generating a diversified range of products and services to fulfil the needs of both domestic and international markets. MSMEs are contributing to the national production, employment & exports and, economic development of the country. The present paper aimed to determine the growth of MSMEs in India and its role in Indian economy. The data of present research paper was collected by exhaustive literature survey through electronic database at Web of Science, MSME online site, Annual reports of GOI, PubMed, Scopus, Science direct etc. According to statistics from the Central Statistics Office (CSO), M/o Statistics & Programme Implementation. With 630.52 lakh estimated MSMEs companies in India, the micro sector accounts for more than 99 percent of all MSMEs. The small sector, with 3.31 lakh (accounts 0.52%)estimated MSMEs, and the medium sector, with 0.05 lakh(accounts 0.01%) estimated MSMEs, respectively, of total estimated MSMEs. 324.88 lakh MSMEs (51.25 percent) are in rural areas, whereas 309 lakh MSMEs (48.75 percent) are in urban areas, according to the estimated number of MSMEs.The contribution of the MSME sector to the country's Gross Value Added (GVA) has grown from 10.97 % in FY 2015-2016 to 12.88 in FY 2018-2019 respectively.Further the share of MSMEs in all India GDP was 29.34% in FY 2014-2015, and in year FY 2018-2019 it has grown to 30.27%. MSMEs are expanding their sphere of influence across the economy, generating a diversified range of products and services to fulfil the needs of both domestic and international markets.

Framework for Integrating Lean Thinking with Industry 4.0: Way Ahead for Entrepreneurs in Indian MSME’s

This research aims to facilitate micro, small and medium enterprises (MSMEs) in integrating lean thinking with Industry 4.0 principles. Qualitative and quantitative data are collected through personal interaction and online surveys of industry professionals. The findings empirically validate and establish the supporting role and importance of lean thinking (principles and techniques) in achieving the Industry 4.0 guiding principle. Text/verbatim analysis indicates positive sentiments on facets like strength, benefits, challenges and training needs of a lean organisation in its transition to Industry 4.0. The framework provides a theoretical base for lean integration with Industry 4.0. The developed framework can be practically deployed in any MSMEs. It can guide entrepreneurs, managers, industry professionals and consultants in their strategic decision-making to implement lean synergistically with Industry 4.0 principles. The framework developed is unique in integrating lean with the principles of Industry 4.0 and would help Indian MSMEs optimise resources for achieving organisational excellence.

The impact of entrepreneurial orientation on firm performance: Exploring the moderating influence of trust and organizational commitment in the Indian IT/ITE sector

The purpose of the research study is to test how entrepreneurship orientation influences Indian MSME’s performance and to delineate the moderation effect of trust in leadership and employee commitment on the relationship between entrepreneurial orientation and firm performance. Based on the social exchange theory, the study tested how firm performance is affected by Entrepreneurship Orientation such that relationships can be exchanged by trust and commitment. Applying descriptive research design, data were collected from randomly selected IT and ITE consulting firms located in Bangalore (A metro Tier I city in the country which presents close to 80 percent of Indian IT and ITE companies’ establishment (timesofindia, 2020)). The hypothesized model was tested using SEM analysis. This study aims to: (1) examine the relationship between entrepreneurial orientation and firm performance within the context of Indian Micro, Small, and Medium Enterprises (MSMEs), with a specific focus on consulting organizations; (2) assess the moderating influence of trust among members on the relationship between entrepreneurial orientation and firm performance; and (3) investigate the interaction effect of managerial commitment on the relationship between entrepreneurial orientation and firm performance, thereby enhancing our understanding of the dynamics at play within MSMEs, particularly in the consulting sector. The capability of being innovative which measures entrepreneurial orientation impact firm performance and being proactive in the business over entrepreneurial orientation positively impacts firm performance while risk-taking attitude and firm performance relationship are not significant. This result is in support of the previous research report that showed only the innovativeness and proactiveness variable. Further, it is noticed from the hierarchical regression analysis that proactiveness and firm performance are moderated by the level of trust that the employee has in his/her functional manager, and proactiveness and firm performance are also moderated by the employee’s level organizational commitment.

Understanding the Impact of Covid-19 on MSMEs in India: Lessons for Resilient and Sustained Growth of Small Firms

The pandemic has raised an issue of survival for most of the micro, small, and medium enterprises (MSMEs) because of their vulnerability in terms of size, limited financial resources, and inefficiency to deal with unpredicted situations. Therefore, the present study has adopted the contingency theory in times of change and uncertainties caused by COVID-19 on MSMEs and found out the ways to enhance its resilience and sustained the growth of this sector. This study has applied descriptive statistics and probit regression analysis to estimate the resilience and sustained growth of the firms through a change in the variables like turnover, labour employed, investment, and age of the firm. Based on the survey of 225 firms, the study observed that around 90 percent of surveyed firms realized a decline in their turnover with a 25 percent reduction in employment that mostly occur in the informal category. Interestingly, there was some increase in formal employment in around 50 percent of firms because of the business commitment of firms, shortage of informal workers, and availability of workers at lower wages. Smaller and younger firms in terms of employment and investment have a higher possibility to be affected by the external shocks indicating that the firm agility increases with firm age and size. Support measures by the government during the pandemic were found to be insufficient and have limited relevance to the MSME sector in its revival. For enhancing the resilience and sustainability of MSMEs, the study suggests small firms should be encouraged to financial planning against business uncertainties and proposes financial security measures viz. Uncertainty Corpus Fund for Small Businesses and Small Business Insurance.

A STUDY ON MICRO SMALL MEDIUM ENTERPRISES PRE AND POST GLOBALIZATION ERA

The Micro, Small and Medium Enterprises (MSME) sector has emerged as a extremely vivacious and dynamic sector of the Indian economy over the last five centuries. It subsidizes significantly in the economic and social development of the country by nurturing entrepreneurship and creating large employment openings at comparatively lower capital cost, next only to agriculture. In India, the MSME sector is highly heterogeneous and is involved in a extensive range of occupational activities. The MSME sector has to continue as an engine of growth provided an environment-friendly policy framework and enabling infrastructural support are made available for its functional operations. Our Indian MSMEs are having a great opportunity to contribute more for the country’s economic growth and government has got a great role in creating an absolute supporting ecosystem to gain the competitive advantage. The present study covers micro small medium enterprises pre and post globalization era. It also examines the number of MSMEs units, production, employment opportunities and export of MSME in the pre and post globalization period. The study is also important factors influencing to start the MSMEs. Also this study majorly focused on micro, small and medium enterprises located in industrial areas of Bihar state.. Various manufacturers, service providers, start-ups from the agriculture based, yarn textiles, Leather based, metal based, repair and services etc., and were interviewed as a part of the study. Simple random method was adopted from probability sampling method. Both primary and secondary data was collected for the study. There are huge openings for the MSMEs to grow as ancillary industries to unleash superior industrial growth. Development of the sector.