Entrepreneurship Development in Micro and Small Enterprises (MSEs) Sector: An assessment of Financial Support Ecosystem

Abstract

Financial support ecosystem means the availability and access of financial resources to Micro and Small Enterprises Sector and generally includes financial support in terms of consultation support services, government funding support, sufficient government subsidies available for new and growing enterprises, venture capital fund support, adequate financial support schemes available, social investment and other financing resources. Financial Support forms an important contextual environment factor for the establishment, growth and sustenance of the enterprises in Micro and Small Enterprises Sector. Absence of a positive financial support ecosystem has been reported as one of the major constraints for the overall entrepreneurship development in the MSEs Sector throughout the world economies. The present study aims to assess the existing financial support ecosystem for the Micro and Small Enterprises Sector in the state of Jammu and Kashmir against the parameters of sufficient supply of capital / funding, adequate number of financial support schemes, collateral security a big problem for MSEs in availing the finance and access to finance cumbersome due to complex procedures and formalities. And on the basis of the findings suggest measures to improve the financial support ecosystem for the robust entrepreneurship development in Micro and Small Enterprises Sector in the State. Findings indicate that to the extent that the collateral security and procedural hiccups were streamlined and more supply of funds made available, there will be remarkable entrepreneurship development in the MSEs Sector of the State.