Factors Contributing to Financial Problems in Micro and Small Enterprises (MSEs) in Haryana Region

In the era of globalization and liberalization, micro and small enterprises are loosing their importance and are being ruined by the enormous business houses. Nevertheless it is a proven fact that Micro, small and medium enterprises act as a growth engine in any economy of the world. In India it is estimated that MSMEs contribute to the 45% of the manufacturing output and around 40% of the total export of the country. Finance is the most important and indispensable input of any business enterprise whether operating at a micro, small, medium or large level. It is observed that most of the micro and small firms are underutilized and declared as sick due to the paucity of the funds. This problem creates a need to study the financing aspect of MSMEs. This paper aims to study the main finance factors which are responsible for their growth hinderance. To study the same, sample of 523 firms has been chosen to analyze the various factors contributing to financial problems for Micro and Small Enterprises (MSEs) in Haryana Region.