Mediating Role of Professional Consultants in Enhancing Financial Performance of MSMEs: Evidence from Thane District

Abstract

The present study examines the mediating role of professional consultants in enhancing the financial performance of MSMEs in Thane District. The study is descriptive and analytical in nature and is based on primary data collected from 80 MSME respondents using a structured questionnaire and purposive sampling technique. Scale reliability was tested using Cronbach’s Alpha, and the value was found to be more than 0.700, indicating acceptable reliability. The Friedman test identified market and business growth challenges as the most serious issues faced by MSMEs, followed by financial challenges and operational and human resource challenges. PROCESS Model 4 mediation analysis confirmed that consultants hired significantly mediate the relationship between business challenges and financial performance. The bootstrap indirect effect was significant, as the confidence interval ranged from -0.5034 to -0.1653, which does not include zero. The study contributes to MSME consulting literature by presenting professional consultants as an important mediating mechanism rather than only a direct support service. The findings offer practical implications for MSME owners, consultants, policymakers and business development agencies by highlighting the role of consultancy support in improving decision-making, profitability, sustainability and overall financial performance.