Business challenges of the nascent and mature micro small and medium enterprises (MSMEs): a comparative analysis from India

Ankita Sarmah () and Bedabrat Saikia
Additional contact information
Ankita Sarmah: Indian Institute of Information Technology Guwahati
Bedabrat Saikia: Department of Economics, Handique Girls’ College

Journal of Global Entrepreneurship Research, 2023, vol. 13, issue 1, 1-13

Abstract: Abstract The study aims to identify the major business challenges of the Indian MSMEs at two different stages of business development, i.e. nascent (while establishing) and mature (operational for at least 5 years) as many MSMEs succumb within their initial years of establishment. Built on a sample of 320 registered MSMEs from Assam, India, it uses a schedule for data collection. The schedule comprises 32 challenges for the nascent MSMEs and 39 challenges for the mature MSMEs. The responses are captured in 5-point Likert scale. The study uses principal component analysis to meaningfully compress data into smaller groups. With the thumb rule of Eigenvalue greater than 1, six challenges for the nascent and seven challenges for the mature MSMEs are extracted as the new principal components (PCs). The six PCs/challenges hence found for the nascent MSMEs are as follows: marketing and infrastructural bottleneck, capital inaccessibility, dearth of entrepreneurial education and training, stringent government policies, paucity of appropriate business support and assistance and limited accessibility to resources. Likewise, the seven PCs/challenges for the mature MSMEs are as follows: inappropriate marketing strategy, capital inaccessibility, paucity of appropriate business support and assistance, limited accessibility to resources, stringent government policies, infrastructural bottleneck and dearth of entrepreneurial education and training. Furthermore, mean scores are calculated for these challenges and comparing the highest mean of all the challenges, and marketing and infrastructural bottleneck with a mean of 29.57 is rated as the most significant challenge for the nascent MSMEs whereas capital inaccessibility (36.39) is the first ranked challenge for the mature MSMEs.

Keywords: Business challenges; Business development; Entrepreneurs; Nascent and mature MSMEs (search for similar items in EconPapers)
JEL-codes: L25 L26 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s40497-023-00364-2 Abstract (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:jglont:v:13:y:2023:i:1:d:10.1007_s40497-023-00364-2

Ordering information: This journal article can be ordered from
http://www.springer. ... urship/journal/40497

DOI: 10.1007/s40497-023-00364-2

Access Statistics for this article

Journal of Global Entrepreneurship Research is currently edited by Nezameddin Faghih

More articles in Journal of Global Entrepreneurship Research from Springer, UNESCO Chair in Entrepreneurship
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().