Institutional Financing and Sustainable Growth of MSMES: Assessing Performance and Prospects

  • Authors

    • Mr. Amar Singh Meena Research scholar at Mittal School of Business, Lovely Professional University, Jalandhar- Delhi, G.T. Road, Phagwara, Punjab (India) -144411
    • Dr. Nitin Gupta Professor at Mittal School of Business, Lovely Professional University, Jalandhar- Delhi, G.T. Road, Phagwara, Punjab (India) -144411
    https://doi.org/10.14419/kk62bv91

    Received date: September 14, 2025

    Accepted date: October 17, 2025

    Published date: November 4, 2025

  • MSMES; Performance; Financial Assistance; Challenges; Growth

  • Abstract

    This study investigates the constraints faced by Micro, Small, and Medium Enterprises (MSMEs) in accessing and utilizing financial assistance across Punjab, Haryana, Himachal Pradesh, and Chandigarh. Utilizing a primary data-based approach and a structured Likert-scale ‎questionnaire, the research employed Exploratory Factor Analysis (EFA) to uncover the underlying dimensions of these constraints. Pre-‎estimation tests confirmed the suitability of the data, and EFA revealed two distinct factors: Procedural and Operational Barriers, and Financial Systemic and Institutional Constraints. The findings indicate that MSMEs struggle not only with complex documentation and collateral ‎requirements but also with limited awareness, digital inaccessibility, and trust deficits in formal financial institutions. These constraints are ‎compounded by regional and demographic disparities, requiring differentiated policy responses. The study concludes that addressing ‎MSME challenges demands an integrated reform framework combining simplified operational processes with system-level institutional ‎transformation. The results contribute meaningfully to policy discourse on inclusive financial access and MSME development in regional ‎economies‎.

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  • How to Cite

    Meena, M. A. S. ., & Gupta, D. N. . (2025). Institutional Financing and Sustainable Growth of MSMES: Assessing Performance and Prospects. International Journal of Accounting and Economics Studies, 12(7), 129-135. https://doi.org/10.14419/kk62bv91