Impact of Financial constraints on Textile MSMEs in Jharkhand

Abstract

This study is conducted to find out the impact of financial constraints on textile entrepreneurs of Micro, Small, and Medium Enterprises (MSMEs) in Jharkhand. They are the crucial drivers of nation growth by creating jobs and boosting GDP contributions. In Jharkhand, MSMEs bolster local economies by fostering industrial growth and livelihoods. However, limited credit access, high borrowing costs, and inadequate financial infrastructure challenge their potential. Using a mixed-methods approach, including surveys and interviews with MSME owners, the research reveals how financial barriers hinder operational efficiency, innovation, and competitiveness. Findings indicate that restricted formal financing exacerbates working capital shortages, limiting growth. The study advocates for targeted credit schemes and financial literacy programs to enhance the resilience and sustainability of Jharkhand’s textile MSMEs, strengthening their economic contributions. The findings show that without reliable funding, these businesses struggle to keep going or grow.