Identification of determinants influencing the performance of MSMEs

Abstract

Industrialization is backbone of developing economy like India, among which major share is of MSMEs. The number of MSMEs is increasing fiercely due to easy start-up policy, but its survival and growth is becoming difficult due to immense competition. In the context of MSME, Performance measurement is still not properly defined. In this paper a conceptual model is proposed for measuring the MSMEs performance. This is a quantitative study, which conducted a survey of 608 MSMEs in Madhya Pradesh. The result of this study shows that all independent variable has a significant correlation to the MSMEs profit along with a moderating effect of Entrepreneur skills. The research is expected to contribute a lot for academics, MSMEs and government to effectively measure MSMEs performance in today’s dynamic environment.