Mudra Scheme and MSME Funding Schemes in India with Special Reference to Entrepreneurs in Coimbatore

Abstract

Micro, Small and Medium Enterprises (MSME} play an important role in the economic growth of the country. The share of MSME in manufacturing, exports and employment generation of the country is significant. Also, in a country like India, micro, small and medium sector has maintained a higher growth rate as compared to the overall industrial sector over the past decade. Understanding this momentous role of MSME in the country, the Government of India had devised and established a number of schemes and policies to promote and support the formation and operation of these micro, small and medium enterprises. These not only benefit the entrepreneurs, but also impact the growth of the economy as a whole. One such initiative by the Indian Government is Pradhan Mantri Mudra Yojana {PMMY}, a part of Startup India initiative which offers financial assistance up to Rs.10 lakhs to entrepreneurs since 2015. Micro Units Development & Refinance Agency Ltd. {MUDRA) established under PMMY has been successful in reaching out to many unfunded micro, small and medium enterprises of the country. This scheme has also funded many women entrepreneurs and created employment opportunities in the country. This study examines the performance of MUDRA over a period of two years, 2015-2017, and also tests the awareness level of entrepreneurs and aspiring entrepreneurs in Coimbatore about certain MSME schemes. The study also attempts to comprehend and review the feedback of the beneficiaries of MUDRA in Coimbatore.