A STUDY ON GROWTH AND PERFORMANCE OF SMALL AND MEDIUM ENTERPRISERS (SMES) –A STUDY OF FINANCING STRATEGIES OF SELECTED SME’S

Abstract

Worldwide, the Micro, Small and Medium enterprises (MSMEs) play a leading role in propelling economic growth sustaining livelihood and in promoting equitable regional development. The MSMEs constitute over 90% of total enterprises in most of the developing economies and credited with generating the highest rate of employment growth and accounting for a major share of industrial production and exports. In India too, the MSMEs play a pivotal role in the overall industrial economy of the country. It is estimated that in terms of value, the sector accounts for about 39% of the Manufacturing output and around 33% of the total export of the country. Further, in recent years the MSME sector has consistently registered a higher growth rate compared to the overall industrial sector. (Shiralashetti, 2012).

This paper focuses on various financing strategies of selected SME’s and overall growth and performance of SME’s.