FINANCIAL CONSTRAINTS IN MSME SECTOR: A STUDY IN DEHRADUN DISTRICT, UTTARAKHAND

Abstract

MSME is identified in diverse manner in various places across the globe. In several nations, they are illustrated in terms of assets, while some nations use jobs as a criterion for explaining the MSME sector. In the present times the MSME industry contributes about forty percent of the country’s total exports and contributes about forty five percent of the national production of their economy. The MSME industry has developed quickly in the last few years as the expansion speed has been very remarkable. In the present times the MSME sector have a decisive role to play in terms of giving good number of job opportunities at reasonable prices than big scale organizations but even assist in establishing industries in villages and undeveloped regions, in this manner, they help to decrease regional discrepancies encourage more equal distribution of GDP and assets. Although, the contribution of MSME in any country’s financial system cannot be overlooked but the reality is that this sector face quite a few hindrances and obstructions. The primary limitation that MSME face in the present times is getting appropriate access to money. In this paper an attempt has been made to investigate the different types of financial constraints that the MSME sector is facing in the current times. The present paper discloses that there are a considerable number of financial constraints in the overall finance system available for this sector and then suggests some remedies to correct this deficiency.