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Globally, there is an increased recognition of the important role played by micro, small and medium enterprises (MSMEs) in the economic development of a country. Similarly, in the South Asia region, MSMEs is the main engine behind the economic growth. In particular, MSMEs are the biggest contributors to GDP, employment and plays a core role in the supply chain of large businesses. One of the major problem faced by MSMEs in South Asian countries is lack of finance to advance business growth. MSMEs are short of setup capital, liquid capital, working capital and investment capital to survive and grow in a dynamic and predatory competitive business environment. MSMEs heavily depend on the financial institutions such as banks, credit corporations and development banks for the supply of finance to meet their daily financial needs. Against this backdrop this paper will analyze the performance of MSMEs in recent decade and also examine the financial obstacles faced by MSMEs. In addition with this paper will provide some recommendations for change in government policy and regulation in assisting MSMEs.

iosr journal of business and management

Role Of Micro, Small And Medium Enterprises (MSMEs) And Its Economic Obstructions In India (A Case Study Of Micro, Small &amp; Medium Enterprises In India)