Factors Leading to Problems Of Micro Enterprises in Tamilnadu

Abstract

The Indian MSMEs are finding it difficult to cope with the challenges of globalization, mainly because of poor access to financial services. MSME sector face problems such as low capital, competition, technology, delayed payments, lack of managerial skills, government regulations and policies, poor quality, immediate sickness, non-availability of skilled labour, infrastructure facility, poor marketing network, low entrepreneurial ability, traditional methods of operations, etc. This study attempts to identify and discuss the problems faced by micro enterprises in Tamilnadu State. The probability simple random sampling technique has been used to collect data from 303 micro-entrepreneurs using a well structured interview schedule. Most of the entrepreneurs feel that access to finance is the major problem. Factor analysis reveals that Govt. policy, competition and cost are the distinctive problems faced by the entrepreneurs. The study finds that religion, social class, involvement of family members, place, industry type, registration, proximity to industrial centers, employment, capital, working capital, market, sales and profit are the factors significantly influencing the nature of problems faced by micro enterprises.