Challenges in Accessing Finance and its Impact on Sustainability of Entrepreneurs Running MSME in Auto Clusters in Chennai

Abstract

The issue of financing for micro, small, and medium-sized firms (MSMEs) has been a matter of concern for several stakeholders, encompassing entrepreneurs, financial institutions, and government entities. The primary aim of this study was to ascertain the diverse obstacles encountered by Micro, Small, and Medium Enterprises (MSMEs) in the process of acquiring financial resources during different phases of their business life cycle. The availability of financial resources significantly influences the advancement of entrepreneurship and the overall economic progress of a nation. It serves as a catalyst for fostering innovative entrepreneurial endeavors. The survival and expansion of micro, small, and medium enterprises (MSMEs) are sustained by the timely availability of financial resources. The objective of this article is to examine the obstacles encountered by micro, small, and medium enterprises (MSMEs) in accessing financial resources, as well as to assess the repercussions of these issues on their overall company performance. This study focuses on examining the accessibility of financial resources and the problems encountered by entrepreneurs in the automobile industry, and how these factors influence the sustainability of micro, small, and medium enterprises (MSMEs) in this sector. A sample of 112 entrepreneurs was selected for the study and this study falls under descriptive type.  The instrument used for collecting the response is Questionnaire, Convenience sampling method, a non-probability method is used to select the respondents for the study.  Descriptive measures and multiple regression analysis are the statistical tools applied.  Reliability of the study was identified as 0.861 (86.1%). SPSS v23 is used to perform the data analysis. It is noted that Subsidies from the government are insufficient for business is the key challenge faced by the entrepreneurs. It is noted that entrepreneur’s ability to stay stable in the market as a result of the funding issues seems to be important aspect of financial sustainability.  Results confirmed that Accessing Financing of MSME, Challenges in getting financial assistance from Financial Institutions/Banks and Government and Challenges in business perspective are having significant impact on Financial Sustainability.