[Download] Tải Impact of public sector banks assistance to MSME: a case study with reference to MSME and their performance – Tải về File Word, PDF

Impact of public sector banks assistance to MSME: a case study with reference to MSME and their performance

Impact of public sector banks assistance to MSME: a case study with reference to MSME and their performance
Nội dung Text: Impact of public sector banks assistance to MSME: a case study with reference to MSME and their performance

Download


The presented research study maks an critical analysis on the assistance of Public Sector banks to MSMEs and its effect on their performance. The research concludes that efficient management and enhancement of MSMEs will boost the employment and enhance the country’s GDP.

Bạn đang xem: [Download] Tải Impact of public sector banks assistance to MSME: a case study with reference to MSME and their performance – Tải về File Word, PDF

*Ghi chú: Có 2 link để tải biểu mẫu, Nếu Link này không download được, các bạn kéo xuống dưới cùng, dùng link 2 để tải tài liệu về máy nhé!
Download tài liệu Impact of public sector banks assistance to MSME: a case study with reference to MSME and their performance File Word, PDF về máy

Impact of public sector banks assistance to MSME: a case study with reference to MSME and their performance

Mô tả tài liệu

Nội dung Text: Impact of public sector banks assistance to MSME: a case study with reference to MSME and their performance

  1. International Journal of Management (IJM)
    Volume 11, Issue 2, February 2020, pp. 1–13, Article ID: IJM_11_02_001
    Available online at http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=11&IType=2
    Journal Impact Factor (2020): 10.1471 (Calculated by GISI) www.jifactor.com
    ISSN Print: 0976-6502 and ISSN Online: 0976-6510

    © IAEME Publication Scopus Indexed

    IMPACT OF PUBLIC SECTOR BANKS
    ASSISTANCE TO MSME: A CASE STUDY WITH
    REFERENCE TO MSMEs AND THEIR
    PERFORMANCE
    Krishnaswamy Ramaswamy
    Research Scholar, RTM Nagpur University, Nagpur, India

    Rajesh Vaidya
    Assistant Professor, Department of Management Technology, Shree Ramdeobaba College of
    Engineering and Management, RamdeoTekdi, Katol Road, Nagpur, India

    Mangipudi Mruthyanjaya Rao and KDV Prasad
    RTM Nagpur University, Amaravati Road, Nagpur, Maharashtra, India

    ABSTRACT
    The Gross Domestic Product of a country indicates the prosperity and wealth of a
    country. In the recent past India has become one of the fastest growing countries and
    completing with the most advanced and developed countries in several areas. The
    Micro, Small and Medium Enterprises are small enterprises carry out the manufacture
    and allied activities will also contribute significantly to GDP, including one-third of
    India’s manufacturing output. In India, 12 crores were employed through MSMEs and
    contribute to 45% of overall exports Most the developed countries contribution to
    GDP is more than 50%, and Centre for Economics and Business Research, 2018
    reported that Indian would overtake both France and UK GDP by 2032. To achieve
    the countries ambition of 5 Trillion economy, there is an urgent need to strengthen the
    MSME in India. Therefore, the presented research study maks an critical analysis on
    the assistance of Public Sector banks to MSMEs and its effect on their performance.
    The research concludes that efficient management and enhancement of MSMEs will
    boost the employment and enhance the country’s GDP.
    Keywords: Growth, MSME, Public Sector Banks, Performance, Impact.
    Cite this Article: Krishnaswamy Ramaswamy, Rajesh Vaidya, Mangipudi
    Mruthyanjaya Rao and KDV Prasad, Impact of Public Sector Banks Assistance to
    MSME: A Case Study with Reference to MSMEs and their Performance,
    International Journal of Management (IJM), 11 (2), 2020, pp. 1–13.
    http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=11&IType=2

    http://www.iaeme.com/IJM/index.asp 1 editor@iaeme.com

  2. Impact of Public Sector Banks Assistance to MSME: A Case Study with Reference to MSMEs and
    their Performance

    1. INTRODUCTION
    A country’s productivity and rating is determined by its G.D.P. (i.e.) Gross Domestic
    Products, which consists of the value of the goods and services it produces throughout the
    year. Every nation aims to raise GDP in order to improve the country and its people in order
    to live with more stability, peace and wealth. Our nation has also become one of the fastest
    growing countries on a par with advanced and developing countries.
    Our nation is basically agriculture based and our production of goods and services are par
    excellence with advanced countries enabling more export earnings. The Govt. of India,
    various State Governments, support for achieving higher GDP thro‟ various schemes,
    notifications, concessions to enable big industries and also small units to increase the output
    of goods and services. The PSU Banks under the guidance of RBI play a vital role in
    achieving above.
    The GDP of India during 2017-2018 is around 7% and expected to be 7.4% to 7.7%
    during 2018-2019. The GDP of India consists of Contribution of 57% from production of
    goods, 26% from services and 17% from Agriculture sector. The GDP of India has doubled in
    a decade (Economic Survey 2017-18). While big industrial houses produce in a big way, the
    MSME viz. Micro, Small and Medium Enterprises too contribute for the GDP.
    The Indian MSME Sector is the major contributor to the national economy providing it
    resilience to ward off global economic stress and adversities with around 36.2 million units of
    MSME across India. The MSME contribution is 6.11% of manufacturing GDP and 24.63% of
    GDP of service sector as well as 33.4% of India‟s manufacturing output (about 1/3) and
    providing employment to 12 crore persons. Further it is contributing forty-five (45%) percent
    of overall exports from the country. The Centre for Economics and Business Research
    reported in July, 2018 mentioned that India would overtake both Britain and France this year
    in terms of GDP and has a chance to become the third highest by 2032.
    The MSMEs play an important role in providing large scale employment opportunities
    with comparatively lower capital cost when compared to big business houses. The MSMEs
    help enhancing the industrialization and employment in backward areas. The Government has
    also initiated the Pradhan Mantri Mudra Yojana for development and refinancing activities
    relating to micro industrial units (Economic Survey, 2017-18).

    1.1. Brief on MSMEs
    Even though we got Independence in 1947, the Governments were not very serious to support
    the Small Scale Industries due to insignificant value individuality, lack of collectiveness and
    spread throughout India and hence were neglected both by Central Government and various
    State Governments. Earlier it was not getting proper care as it was called “Small Scale
    Industries” and virtually got ignored.
    After five decades viz. on 18.01.2006, the Govt. of India enacted in Parliament MSMED
    Act, 2006, to enable MSMEs Sector for vibrant growth and installed a separate Ministry of
    Micro, Small & Medium Enterprises, with Independent Minister incharge was created and
    presently Hon‟ble Minister, Shri Giriraj Singh, Minister of State independent charge for
    MSME under able and dynamic leadership of our respected Prime Minister Sri Narendra
    Modiji and are taking all positive steps for growth of MSME Sector (MSME, 2019).
    The significance and contribution of the Sector by successive Governments results in
    providing the Micro, Small and Medium Enterprises Development Act, 2006 for facilitating
    the promotion, development and enhancing the competitiveness of MSME and for matters
    connected there with or incidental thereto (Senapathy, 2014).

    http://www.iaeme.com/IJM/index.asp 2 editor@iaeme.com

  3. Krishnaswamy Ramaswamy, Rajesh Vaidya, Mangipudi Mruthyanjaya Rao and KDV Prasad

    1.2. Major advantages of MSMEs
    Micro, Small and Medium Enterprises require less capital but generates more employment,
    more prosperity for urban and rural development. If well maintained would yield
    unimaginable quantum of prosperity and GDP for the country.

     Employment generation

     IT Initiatives

     New Initiatives

     Accountability to Credit

     Skill Development & Training

     Performance of attached organization

    Thro‟ MSME Ministry, Development Industries in India so far 6.42.272 people were
    trained and 91634 got placements. Under assistance to training institutions 207235 were
    trained of which 43761 got wage employment and 21783 self-employed.

    Table 1. Classification of MSME as per MSME Act 2006 on the basis of Investment in Plant and
    Machinery and Equipment
    Classification Manufacturing sector Service sector
    Micro Enterprises Upto Rs. 25.00 Lakhs Upto Rs. 10.00 Lakhs
    Small Enterprises Over Rs. 25.00 Lakhs Over Rs. 10.00 Lakhs
    Less than Rs.5.00 Crores Less than Rs.2.00 Crores
    Medium Enterprises Over Rs. 5.00 Crores Over Rs. 2.00 Croress
    Less than Rs. 10.00 Crores Less than Rs.5.00 Crores
    Over and above limits are not covered by MSMED Act 2006.
    Source: MSME 2019
    .

    1.3. MSME and PSU Banks
    There are 21 PSU banks functioning in India during 2018 are providing assistance to MSMEs.
    The specific reasons for choosing PSU banks assistance for MSMEs growth are:

     Government holds 51% shares and works on the objective of not-for profit motto

     Social Justice by extending credit advances, guidance for Micro, Small and Medium
    Enterprises who need support.

     PSU Banks to MSMEs for their growth and how far it has helped one considered relevant for
    the analysis of the study

    http://www.iaeme.com/IJM/index.asp 3 editor@iaeme.com

  4. Impact of Public Sector Banks Assistance to MSME: A Case Study with Reference to MSMEs and
    their Performance

    1.4. Government of India-MSME Initiatives

    With the above brief background the research was conducted and the results were
    presented here under

    2. AIM OF THE STUDY
    The purpose of study is to understand how far “the Assistance provide by public sector banks
    to MSME and its impact on their performances (with special reference to Hyderabad City).
    How it can attract the operations of MSMEs, whether any other factors are also responsible”.

    2.1. Objectives of the Study
     To understand the various assistance provided by PSU Banks to MSMEs.
     To study whether it has helped to improve the performance of MSMEs.
     To study whether any other factor / factors are also responsible for their growth.
     To study other factors like market conditions, product life, technology changes, cheaper
    substitutes, consumer patter, Govt. policies, Banks comfortable positions, etc. do or do not
    contribute for growth and success of MSMEs.

    http://www.iaeme.com/IJM/index.asp 4 editor@iaeme.com

  5. Krishnaswamy Ramaswamy, Rajesh Vaidya, Mangipudi Mruthyanjaya Rao and KDV Prasad

    2.2. Scope and Limitations of the Study
    Scope
     Temporal Scope: For the purpose of the Study the collection of data shall be from the period
    from 2013-2014 to 2017-2018.
     Functional Scope: To study the assistance provided by PSU Banks to MSME and its impact
    on their performance.
     Geographical Scope: The study is taken up with special reference to Hyderabad City only.
    Limitations of the study
     Inf. & Data collected are believed to be reliable in good faith, but may not be verifiable
    independently.
     pinions expressed by Entrepreneurs, Bankers, MSMEs, Quorum, may have been biased or
    may be from their angle.
     Study is confined to Hyderabad City, issues may vary in other places.
     Information collected being sensitive, with vigorous persuasion and visits I could collect data
    for analysis as planned.

    3. RESEARCH DESIGN
    A positivist research design was applied where the research is based on survey, data
    collection, data analysis, statistical analysis, hypotheses and concluding the study with
    evidence based reports.

    3.1. Sampling
    MSMEs were chosen using random sampling technique to conduct study and Stratified
    random techniques are used.

    3.2. Sample Size
    The sample size of 46(NAAC), 44(NBA), and 62 (NYAKS) cases each in Micro, Small and
    Medium Enterprises were planned and overall 152 nos. actually collected.

    3.3. Data Collection
    Primary Data–Thro‟ structured questionnaires, observations, interviews and discussions.
    Secondary Data – Annual Reports of GOI, MSME, Govt. of TS websites, banks‟ annual
    reports, text books, press reports.

    3.4. Reliability Statistics
    The C-alpha was measured for all the three sets of the data and the results were presented in
    Table 2.

    Table 2
    Cronbach’s Alpha No. of Items Interference
    0.926 46 Since the value is > .6 or 60%, the data is
    reliable as it is 92%
    0.715 44 Since the value is > .6 or 60%, the data is
    reliable as it is 72%
    0.714 62 Since the value is > .6 or 60%, the data is
    reliable as it is 71%

    http://www.iaeme.com/IJM/index.asp 5 editor@iaeme.com

  6. Impact of Public Sector Banks Assistance to MSME: A Case Study with Reference to MSMEs and
    their Performance

    3.5. Hypotheses
    Hypotheses that have been formulated will be tested to describe the relationship between the
    variables are:
    Ho : To test if there is relation or association or correlation between financial assistance by
    PSU Banks to MSMEs and its growth / success.
    H1 : To test there is no association or correlation between financial assistance by PSU
    Banks to MSMEs and its growth / success.
    Ho : To test other factors like market conditions, product life, technology changes, cheaper
    substitute consumer pattern, Govt. policies etc. also contribute for growth and success of
    MSMEs.
    H1 : To test other factors like market conditions, product life, technology changes, cheaper
    substitutes, consumer pattern, Govt. policies etc. do not contribute for growth and success of
    MSMEs.
    For the purpose of analysis he hypothesis are further divided into shypothesis and analysis
    is done based on sub-hypothesis and conclusions were drawn.

    3.6. Data Analysis
    Chi Square Test Analysis : (Test for Independence)
    Chi Square Test
    The Chi Square Statistic is commonly used for testing relationships between categorical
    variables. The null hypothesis of the Chi Square Test is that no relationship exists on the
    categorical variables in the population, they are independent.
    Usage of Chi Square Test : Significance level often researchers choose significance levels
    equal to 0.05 level used.

    Test Method
    The formula used is
    X²c = € (fo – fe)²
    Fe
    Fo = Observed Frequency
    Fe = Expected Frequency. If no relationship existed between variables
    As depicted in this formula, the Chi Square Statistic is based on the difference between
    what is actually observed in the data and what would be expected if there was truly no
    relationship between the variables.
    „P‟ Value should be less than .05 (which is alpha level) with 95% confidence level. If the
    „P‟ value is less than .05, we conclude the variables are not independent each other and there
    is statistical relationship between categorical variables. If the Chi Square we calculated is
    bigger than the critical value in the table, then the data did not fit the model, which means we
    to reject the NULL hypothesis.
    A very small Chi Square Test statistic means that our observed data fits our expected data
    extremely well. A large Chi Square test statistic means that data does not fit very well.
    The Chi Square test thus is the test that involves the use of parameters to test the statistical
    significance of the observations. Chi Square Test is one of the important non-pa.rametric tests
    that is used to compare more than to variables for a randomly selected data / population
    (Kothari and Gard).

    http://www.iaeme.com/IJM/index.asp 6 editor@iaeme.com

  7. Krishnaswamy Ramaswamy, Rajesh Vaidya, Mangipudi Mruthyanjaya Rao and KDV Prasad

    The variable under study is categorical the expected value of the number of sample
    observations in each level if the variable is at least 5.

    4. ANALYSIS OF CASE STUDIES
    4.1. Case Study – I (46 Cases)
    Most of the firms, enterprises got into problems due to reasons like power shortage, recession
    in industry, high taxation, scarcity, shortage of import material. Monsoon failures and very
    strict and harsh attitude of banks in release of loans / advances or on revival of sick units and
    had become NPA. Most of cases are pending with SLIIC, Telangana State Sub-Committee,
    Director of Industries and some with banks. It is very difficult to expect positive outcome at
    this stage when banks themselves are facing severe strains due to heavy NPA increase, RBI
    norms, fear psychosis (RBI, 2017-2018).

    4.2. Case Study – II (44 Cases)
    Most are medium and small scale enterprises able to utilize the bank loans, efficiently manage
    funds, other marketing issues, recession etc and keep themselves safe. This is due to the fact
    that these firms / companies have other sources / income with which they sustain during
    difficult times. Adopting conservative measures, managing tax matters, going in for
    outsourcing, trying for substituted materials, cheaper manufacturing ways etc. This is possible
    by medium / small enterprises (Katyal and Xavier, 2015; Behera et al. 2017).

    4.3. Case Study – III – (62 Cases)
    Most of the cases of entrepreneurs / firms, it is seen either they avoid taking fresh loans or
    reduce their burden on finance cost by going for minimum loans / advances. Many are
    awaiting for better times for reduction of interest rates, easy banking norms, reduction in taxes
    (GST/IT further) as incentives and also the global and general recession to vanish. Their
    dependence on their activity for survival during Economic-Tsunami these sectors cannot face.
    They drive cautiously. Hence, slow growth, more cost, less profit. The stiff competition and
    cheaper availability of Chinese goods are additional reasons /setback for them. It is true
    survival of the fittest is the rule and they must try all means to survive, so that they can sustain
    and grow during good times (Babu et al. 2015; Setyawati et al. 2014)
    Interference on analysis of Case Study / interviews of entrepreneurs, firms, partnership
    firms etc. the following are briefed (Reasons, Remedies and suggestions)
    A. Many Micro Entrepreneurs, Firms, Partnership are feeling the high pinch of finance
    cost (interest).
    B. Insistence of Collateral Security for loans is another stumbling block for new starters.
    C. The procedures, systems from start of application of loan till disbursement is a
    lengthy, time consuming cumbersome procedure discouraging persons to avail loans.
    D. Most of the entrepreneurs / firms try to do maximum business without further loan /
    with their funds so that additional cost towards interest is avoided as it eats to the profit
    earned.
    E. The general recession due to global recession all are waiting for good time for
    expansion of business.
    F. The stiff / cut throat competition is also responsible for enterprises to think twice
    before taking loan.
    G. Due to strict norms of banks, declaring NPA in case of failure of interest by 90 days
    result in very unpleasant consequences, due to which there is fear for fresh loans.

    http://www.iaeme.com/IJM/index.asp 7 editor@iaeme.com

  8. Impact of Public Sector Banks Assistance to MSME: A Case Study with Reference to MSMEs and
    their Performance

    H. Positive attitude like some more publicity on various schemes, positive approach by
    bankers, MSME Depot, Govt. and increase in GST limit to Rs.2 Cr. p.a. making license,
    system in line, would encourage new comers to come to field and play well.
    I. Taxation System of GST, IT must be made more simple easy to understand and
    proactive for smaller people, businessmen appreciating their pains are some of the ways to
    develop more MSMEs to enter the market grow and flourish.

    4.4. Hypotheses Testing
    Ho: There is No Correlation between financial assistance by banks to MSMEs and its success.
    H1: There is correlation between financial assistance by banks to MSMEs and its success.
    As per Chi Square, the calculated significant value is less than 0.05; we reject the null
    hypothesis and conclude there is relation between financial assistance to MSMEs and its
    success. Hence it can be concluded that more financial assistance enables MSMEs growth and
    its success.
    Ho: Other factors like market recession, product life, technology changes, cheaper availability
    of products, consumer patterns, Govt. policies etc. do not contribute for growth and success of
    MSMEs.
    H1: Other factors like market recession, product life, technology changes, cheaper availability
    of products, (Substitution), consumer pattern, Govt. policies etc. do contribute for growth and
    success of MSMEs.
    As per Chi Square, the corresponding significant value is less than 0.05, we reject the Null
    hypothesis and accept alternative hypothesis. Hence, it can be concluded that other factors are
    also responsible and contribute for growth or recession of MSMEs and its success.
    Ho: Govt. Policies does not matter for growth of MSMEs and its success.
    H1: Govt. Policies matter for growth of MSMEs and its success.
    As the calculated significant value is 0.000, which is less than 0.05, we reject the NULL
    hypothesis and accept alternative hypothesis and conclude that positive Govt. policies are
    helpful to MSMEs and will enable growth of MSMEs.
    Ho: Govt.‟s levy of import duty and MSMEs growth there is no relation.
    H1: Govt.‟t levy of import duty and MSMEs growth there is relation.
    As the calculated significant value is 0.000 which is less than 0.05, we can reject NULL
    hypothesis and accept alternative hypothesis and conclude Govt.‟s heavy import duty will
    help MSMEs to sell locally goods due to competitiveness.
    Ho: Govt.‟s supporting schemes on preference of purchase by PSUs for MSME is not related
    to success and growth of MSMEs.
    H1: Govt.‟s supporting Schemes on preference on purchase by PSUs from MSMEs is related
    to success of growth of MSMEs.
    As the calculated significant value is 0.000 which is less than 0.05 we reject NULL
    hypothesis and accept alternative hypothesis and conclude. Govt.‟s supporting schemes on
    preference of MSMEs products by PSUs will enable more sales and growth of MSMEs.
    Ho: Global recession does not affect growth of local MSMEs.
    H1: Global recession does affect growth of local MSMEs.
    As the calculated significant value is 0.000 which is less than 0.05, we reject NULL
    hypothesis and accept alternative hypothesis and conclude Global Recession affects growth of
    local MSMEs on exports are affected and demand will be less.

    http://www.iaeme.com/IJM/index.asp 8 editor@iaeme.com

  9. Krishnaswamy Ramaswamy, Rajesh Vaidya, Mangipudi Mruthyanjaya Rao and KDV Prasad

    Ho: Cheaper alternative substitutes availability does not affect growth of MSMEs.
    H1: Cheaper alternative substitutes availability affect growth of MSMEs.
    As the significant value is 0.000 which is less than0.05 we reject NULL hypothesis and
    accept alternative hypothesis and conclude, availability of cheaper substitutes like Chinese
    goods does affect the sale and growth of local MSMEs.
    Ho: Heavy Taxes, levies for MSMEs products on par with big industrial houses does not
    affect growth of MSMEs.
    H1: Heavy taxation, levies on MSMEs products on par with big industrial houses affect
    growth of MSMEs.
    As the calculated significant value is 0.000 which is less than 0.05 we reject NULL
    hypothesis and accept alternative hypothesis. Thus, we conclude, Govt.‟s levy of taxes on
    MSME products affects growth of MSMEs due to high cost and competitiveness and in-turn
    affects adversely growth of MSMEs.
    Ho: MSMEs do not depend on support of big industrial houses for its growth.
    H1: MSMEs depend on support of big industrial houses for its growth.
    As the calculated significant value is 0.000 which is less than 0.05, we reject NULL
    hypothesis and accept alternative hypothesis. Thus conclude the MSMEs growth depends on
    support of big industrial houses as when they stop buying from MSMEs and their support is a
    must for growth for MSMEs.
    Ho: Availability of cheaper loans by PSU Banks to MSMEs does not help for its growth and
    success.
    H1: Availability of cheaper loans by PSU Banks to MSMEs does help for its growth and
    success.
    As the calculated significant value is 0.000 which is less than 0.05, we reject NULL
    hypothesis and accept alternative hypothesis. We conclude that making availability of cheaper
    loans (Soft Loans) to MSMEs will enable to do more production, less cost, more
    competitiveness and hence it will help in growth and success of MSMEs.
    Ho: Govt.‟s support on technology upgradation to MSMEs does not enable MEMEs growth.
    H1: Govt.‟s support on technology upgradation to MSMEs enables MSMEs growth.
    As the significant value calculated is 0.000 which is less than 0.05, we reject NULL
    hypothesis and accept alternative hypothesis and conclude that any Govt.‟s initiatives and
    support on technology upgradation to MSMEs at cheaper cost or subsidy or free, would help
    growth of MSMEs as it will reduce cost and more profit, more growth for MEMEs.
    Ho: New taxation rules, compliance system which are computer based does not affect growth
    of MSME and its success.
    H1: New taxation system, compliance thro‟ computer does affect profit of MSME and its
    growth and success.
    As the calculated significant value is less than o.05 NULL hypothesis is rejected and
    alternative hypothesis is accepted. Thus we conclude, the new taxation system, compliance of
    reports, returns thro‟ compute affects MSMEs growth as it involves additional cost for
    engaging professionals and non-compliance attracts penalty on MSMEs.
    Ho: In the present globe as the market, tariff, levies by foreign countries on products of our
    MSMEs does not affect growth and success of MSMEs.
    H1: In the present globe as the market, any increase, levies by foreign countries on products of
    our MSMEs affect badly due to high cost, competitiveness.

    http://www.iaeme.com/IJM/index.asp 9 editor@iaeme.com

  10. Impact of Public Sector Banks Assistance to MSME: A Case Study with Reference to MSMEs and
    their Performance

    As the calculate significant value is less than 0.05, the NULL hypothesis is rejected and
    alternative hypothesis is accepted. Thus, we conclude any levies, taxes on our MSMEs
    products by foreign Govts. Does affect badly MSMEs growth as it adds to further cost for
    consumer for them and due to competitiveness goods may get rejected affecting growth and
    success of our MSMEs.
    Ho: Cheaper power and concessional raw materials by Govt. to MSMEs does not affect
    growth and success of MSMEs.
    H1: Cheaper power, concessional raw materials by Govt. to MSMEs affect growth and
    success of MSMEs.
    As the calculated significant value is less than 0.05 we reject NULL hypothesis and accept
    alternative hypothesis. Thus, we conclude availability of cheaper power; raw materials will
    help to reduce cost of production for MSME and in-turn enable growth and success of
    MSMES.
    Ho: The enterprise / entrepreneurs honesty, integrity does not affect growth of MSMEs.
    H1: The enterprise / entrepreneurs honesty, integrity affects growth of MSMEs.
    As the calculated significant value is less than 0.05, we reject NULL hypothesis and
    accept alternative hypothesis. Thus we, conclude, a honest and integrity company / firm /
    entrepreneur enables timely repayment of loans, finishing returns to Govt. payment of taxes
    and thus avoid penalties, which encourages Banks, other agencies to recognise the
    requirements of MSMEs, considers further loans at concessional rates will definitely help
    growth of MSMEs. Dishonest cases are bound to be rejected by Banks and hence affects.

    4.3. Test for Reliability and Correlation Analysis Findings
    1. There is relation between financial assistance provided to MSMEs and its success and
    more assistance enables more growth.
    2. The other factors like technology changes, availability of cheaper substitutions etc. are
    also responsible and contribute for growth and success of MSMEs as they are correlated.
    3. The positive Govt. policies are correlated to MSMEs growth and would be helpful for
    growth and success of MSMEs.
    4. The Govt. policy on imposing heavy duty on imported goods are correlated to the
    MSMEs growth and higher levy by Govt. would enable MSMEs to grow and succeed.
    5. The Govt.‟s supportive schemes on PSUs purchase preference of MSME goods are
    correlated and such moves of Govt. would enable MSME to increase sales, growth and in-turn
    succeed.
    6. The global recession is correlated to MSMEs and it adversely affects growth of
    MSMEs as its turnover gets reduced.
    7. The availability of cheaper imported substitute goods (like Chinese products) has
    relation with MSMEs growth and such availability would affect MSMEs turnover and
    growth.
    8. The heavy taxes being levied on goods produced by MSMEs has relation with
    MSMEs growth as the increased tax increase cost and in-turn less competitive and less sales,
    less growth of MSMEs.
    9. The support of ancillary units of MSMEs by big industrial houses has relation with the
    growth of MSMEs and more support by them would enable MSMEs to increase production,
    turnover and growth.

    http://www.iaeme.com/IJM/index.asp 10 editor@iaeme.com

  11. Krishnaswamy Ramaswamy, Rajesh Vaidya, Mangipudi Mruthyanjaya Rao and KDV Prasad

    10. Govt.‟s initiative for making available of subsidized raw material s relation with the
    growth of MSMEs as it would enable to reduce cost of production of MSMEs and in-turn its
    growth.
    11. Govt. Banks making availability of soft bank loans to MSMEs has relationship with
    growth of MSMEs as it would enable MSMEs to avail, reduce its finance cost, and reduce
    cost of production and in-turn growth.
    12. Govt.‟s making available of imported good production technology has relationship
    with MSMEs growth as it would enable to reduce cost of production and more
    competitiveness.
    13. The introduction of new taxation system, online filing etc. computers savvy schemes
    has relation with MSMEs growth as it increased additional cost and in-turn less profit and
    affects growth, unless Govt. initiates availability of such facilities at cheaper rates.
    14. The levy of import duties on goods by foreign Govt. is related MSME on any such
    levy will adversely affect MSMEs due to increased cost for consumer and likely good of
    rejection in-turn less competitiveness of our products, affects MSMEs growth.
    15. Govt.‟s making available of cheaper power cost for MSME is related to growth of
    MSMEs as it adds to reduction in cost of production and in-turn more profit, growth and
    success of MSMEs.
    16. The honesty, integrity of entrepreneur, firms, enterprise is related to growth of
    MSMEs as dishonest, way of doing business, evasion of duties, non-payment of interest to
    Banks for loans, diversion of business funds for private uses, gambling, real estate
    investments etc. affects MSMEs credibility in-turn refusal by banks, levy and penalty by
    Govt. and in-turn affects growth of MSMEs and its success.

    5. CONCLUSIONS
    The MSME sector facing multiple challenges, including various regulations of RBI,
    Government, etc., with stress on high quality, competition with high enthusiasm, positive
    approach and the hunger for higher growth and success.
     Against all odds like recession, high inflation, higher cost, MSME sector is growing and
    needed some more support like grants/loans, advances of soft loans, subsidies to strengthen
    and beneficial outcomes of MSME.
     MSME have a humanistic approach not always thrive for profits and the recent example of 18
    football trainees and coach caved in Thailand where MSME firms supplied free oxygen.
     MSME firms need continuous nourishment, monitoring to the benefits at the fullest level our
    of MSME – more production, higher GDP, more employment in turn more prosperity to the
    country.
     MSME firms need support socially, economically, technologically, financially to justify the
    purpose of various introductions to MSMED act, amendments are justified.
     The MSME firms unique character is hard work, dedication, in the base of growth and
    success. Even the Sky is not limit for the MSMEs.
     The magic mantra of Unity is Diversity is not prevailing anywhere in the world. Let us make
    industrial revolution growth and success and lead the rest of other nations on this front too.

    6. SCOPE FOR FURTHER RESEARCH
    The Current study can be further extend to analyse new techniques, ways, schemes,
    innovative ideas, adopting foreign countries successful plans, for further speedy growth of
    MSMEs. More study in above will thromore solutions. Necessity is the mother of invention.
    The urge should be continuous and the hungry must be more at it is a Life line of the nation.

    http://www.iaeme.com/IJM/index.asp 11 editor@iaeme.com

  12. Impact of Public Sector Banks Assistance to MSME: A Case Study with Reference to MSMEs and
    their Performance

    This can definitely yield more beneficiary, effective, useful ideas, schemes from Government,
    Banks, and MSMEs and also from entrepreneurs of MSMEs.

    7. SUGGESTIONS FOR GROWTH AND SUCCESS OF MSMES
    For growth and success of MSMEs, as it is inter-related with other agencies, actions / steps to
    be taken by them are suggested as below:
    Govt. of India
     To Expedite amendment to MSMED Act Bill now pending. (MSMEs on the basis of annual
    turnover).
     Reduce IT / GST and other levies for MSMEs goods.
     Grant interest, power subsidies and more incentives.
     To bring petroleum products under GST for less cost.
     Award star ratings for best MSMEs to encourage comply with the rules / Acts.
     Advise PSUs to give support for MSMEs on procurement, release of funds, & technology.
    Reserve Bank of India
     Strict compliance of its guidelines and expedite redressal of MSME.
     To issue clear and friendly guidelines for sanction, release and handling sick MSMEs.
    PSU Banks
     Adopt positive, sympathetical, practical and friendly attitude while handling MSME cases.
    MSME Department
     Give good and latest technology, accounting system free for MSMEs.
     Act as coordinator of MSMEs with banks and Govt
    Entrepreneurs of MSMEs
     Be honest, smart working, use latest and innovative methods, be Rule / Act compliance to tap
    global market.
     Never divert bank loans for personal and other purposes and ensure prompt repayment of
    loans.

    REFERENCES
    [1] Ministry of Micro, Small and Mediun Enterprises. Government of India. 2018
    https://msme.gov.in/know-about-msme
    [2] An Overview of India‟s Economic Performance. 2018. Economic Survey 2017-18,
    Chapter 1, Pages 1-25.
    [3] World Economic Outlook Database. 2018. International Monetary Fund. 17 April 2018.
    [4] MSME Amendment act 2016. http://pib.nic.in/newsite/PrintRelease.aspx?relid=176353
    [5] Annual Reoport 2017-2018. Reserve Bank of India. New Delhi, pp. 268‟
    [6] Kothary, C.R,. and Gaurav Garg. Research Methodology: Methods and Techniques New
    Delhi : New Age International (P) Limited, Publishers, 2019.
    [7] Senapati, M. P. Marketing of small business: A Case of Small Business in India. IOSR
    Journal of Business and Management, 16(5), 8-11. 2014
    [8] Katyal, A., & Xaviour, B.. A study on MSMEs‟- Role in Propelling Economic
    Development of India & a discussion on current HR issues in MSMEs‟ in
    India. International Journal of Scientific and Research Publications, 5(2), 1-11. 2015

    http://www.iaeme.com/IJM/index.asp 12 editor@iaeme.com

  13. Krishnaswamy Ramaswamy, Rajesh Vaidya, Mangipudi Mruthyanjaya Rao and KDV Prasad

    [9] Behera, G.K., Mahapatra, R,P, and Tudyu, S, Dimensions in Growth of Small Scale
    Indsustries (MSMEs) in Odisha: An Impact of Employees. International Journal of
    Research in Commerce & Management, 8(3), 2017
    [10] Setyawati, A., Nimran, U., Zulkhirom, M., & Kumadji, S. K, Effect of Strategic Decision,
    Innovation, and Information Technology Adoption on Competitive Advantages and
    MSME Performance Studies at MSME Food and Beverage Industry Sector in Bandung
    Raya. Europan Journal Business and Management, 6(35), pp 52-58. 2014
    [11] Babu, N. G., Srinivasarao, Y., & Sambaiah, C, Role of Innovation for Sustainable
    Performance of Selected MSMEs in Andhra Pradesh, India. Emerging Strides in
    Innovations and Skill Enhancement–Sustainable Development a Key Focus, 2015
    [12] Ministry of Micro, Small and Medium Enterprises, Government of India
    https://msme.gov.in/, 2019
    [13] Aditi Kejriwal, A Comparative Analysis of Organizational Role Stress among the Private
    and PublicSector Bank Officials in Jorhat, Assam, Journal of Management, 6(3), pp. 106-
    116. 2019
    [14] Dr. M. Raja, Dr. M. Muthu Gopalakrishnan, Dr. R. Venkatamuni Reddy, Prof. A. Nagaraj
    Subbarao, A Study on the Stress Level of Public Sector Bank Employees with Special
    Reference to Tiruchirappalli District of Tamil Nadu, Journal of Management, 6 (2), pp.
    302–309. 2019
    [15] Payel Roy and Dr. Pradip Kumar Samanta, Analysis of Non-Performing Assets in Public
    Sector Banks of India. International Journal of Management, 8(1), pp. 21–29. 2017
    [16] Dr. M. Raja, Dr. M. Muthu Gopalakrishnan, Dr. R. Venkatamuni Reddy, Prof. A. Nagaraj
    Subbarao, Customer‟s Satisfaction on Online Banking Services Offered by Selected
    Private and Public Sector Banks in Chennai City, Journal of Management, 6 (2), pp. 310–
    319. 2019
    [17] Dr. B.C.M. Patnaik, Dr. Ipseeta Satpathy and Nihar Ranjan Samal, Determinants of
    Infrastructure (Home) Loan in Indian Public Sector Banks, International Journal of Civil
    Engineering and Technology, 9(5), pp. 1001–1009. 2018

    http://www.iaeme.com/IJM/index.asp 13 editor@iaeme.com

Download tài liệu Impact of public sector banks assistance to MSME: a case study with reference to MSME and their performance File Word, PDF về máy