PERFORMANCE OF MICRO ENTERPRISES IN MURSHIDABAD DISTRICT OF WEST BENGAL

Abstract

The Micro, Small and Medium Enterprises (MSMEs) act as a catalyst for faster, sustainable and overall socio-economic development of a country. In India, MSMEs play key roles in promoting economic growth and development equally at all levels starting from rural to regional to national levels. They have a significant contribution in employment generation, production, exports and developing entrepreneurial skills. The present paper seeks to study the performance of micro enterprises in Murshidabad district of West Bengal based on the data obtained from the field survey. Statistical and regression analysis (OLS) are used in this study. The study shows that the trading sector elicits the highest participation rate, followed by production activities and services activities. The study also examined the impact of financial assistance on the turnover and mean yearly income of the enterprises. The empirical results show that there is a significant positive impact of the loan amount provided by CEF (Community Entrepreneurship Fund) on the yearly turnover of micro enterprises. It is also observed that there is a positive and significant relationship between the loan amount provided by CEF and the yearly income of the enterprise. Hence, the findings of this study suggest providing more financial assistance to the micro enterprises for their growth and development.

Keywords: MSMEs, West Bengal, Yearly Turnover, yearly mean income, Financial Assistance.