Dual Realities of Resources Challenges and Market Opportunities in Small Scale Enterprises of Namakkal District
Abstract
This study investigates the dual realities of challenges and opportunities experienced by small-scale enterprises (SSEs) in Namakkal district, Tamil Nadu. Anchored in an empirical and quantitative framework, the research surveyed 130 enterprises selected through stratified random sampling across five clusters: agro and poultry, textiles, food processing, transport-related services, and other small-scale manufacturing. Primary data were collected using a structured interview schedule and analysed through descriptive statistics, Chi-square tests, ANOVA, and multiple regression modelling. The findings reveal that financial constraints represent the most significant barrier to enterprise performance with regression results showing a strong negative relationship between finance-related challenges and outcomes. The study contributes an integrative framework positioning performance as the outcome of both constraints and opportunities. Entrepreneurial strategies highlight the importance of digital adoption, managerial strengthening, and diversification for enhancing competitiveness.
Downloads
References
Rath, S., & Ghosh, A. (2021). Small enterprises and inclusive growth in India. Journal of Economic Policy Research, 28(1), 72–91.
Senthilkumar, R. (2020). Entrepreneurial ecosystems in Namakkal district: Poultry and beyond. Tamil Nadu Journal of Rural Studies, 16(1), 55–68.
Narayanasamy, R., & Anitha, P. (2019). Access to credit and financial challenges of small enterprises in Tamil Nadu. International Journal of Business and Economics, 14(2), 127–142.
Sivakumar, M., & Rajendran, L. (2021). Technology adoption barriers in Indian small enterprises. International Journal of Management Studies, 28(2), 94–109.
Kumar, V., & Thomas, J. (2019). Skill shortages and managerial challenges in small-scale industries. Indian Journal of Industrial Relations, 55(3), 489–503.
Ministry of Micro, Small and Medium Enterprises (MSME). (2023). Annual Report 2022–23. Government of India.
Sridharan, P., & Arumugam, S. (2022). Digital marketing and e-commerce opportunities for rural small businesses. Indian Journal of Commerce and Management, 9(4), 114–128.
Basu, S., & Bhattacharya, P. (2020). Women entrepreneurship and rural enterprise development in India. Journal of Rural Development, 39(2), 205–221.
Prasad, R. (2021). Barriers to government scheme utilisation among rural entrepreneurs. Journal of Development Policy Studies, 18(4), 411–430.
Joseph, A., & Abraham, B. (2022). Competitiveness and innovation in small enterprises: Evidence from Tamil Nadu. Asian Journal of Management Research, 12(1), 33–48.
Ministry of Micro, Small and Medium Enterprises. (2023). Annual Report 2022–23. Government of India.
Government of Tamil Nadu. (2021). Tamil Nadu MSME Policy 2021. MSME Department.
National Sample Survey Office. (2016). 73rd Round: Unincorporated Non-Agricultural Enterprises (Excluding Construction). Ministry of Statistics and Programme Implementation.
Beck, T., & Demirgüç-Kunt, A. (2006). Small and medium-size enterprises: Access to finance as a growth constraint. Journal of Banking & Finance, 30(11), 2931–2943.
de Mel, S., McKenzie, D., & Woodruff, C. (2008). Returns to capital in microenterprises. Quarterly Journal of Economics, 123(4), 1329–1372.
Banerjee, A. V., & Duflo, E. (2014). Do firms want to borrow more? Testing credit constraints using a directed lending program. Review of Economic Studies, 81(2), 572–607.
Credit Guarantee Fund Trust for Micro and Small Enterprises. (2023). Annual Report 2022–23. CGTMSE.
Bloom, N., & Van Reenen, J. (2007). Measuring and explaining management practices. Quarterly Journal of Economics, 122(4), 1351–1408.
Small Industries Development Bank of India. (2023). SIDBI MSME Pulse & Digital Adoption Trends. SIDBI.
McKenzie, D., & Woodruff, C. (2014). What are we learning from business training evaluations around the developing world? World Bank Research Observer, 29(1), 48–82.
Gereffi, G., & Fernandez-Stark, K. (2016). Global value chain analysis: A primer (2nd ed.). Duke CGGC.
National Bank for Agriculture and Rural Development. (2021). Allied activities and rural enterprise development. NABARD.
Organisation for Economic Co-operation and Development. (2019). OECD SME and Entrepreneurship Outlook 2019. OECD Publishing.
World Bank. (2020). Doing Business 2020: Comparing business regulation in 190 economies. World Bank.
Reserve Bank of India. (2019). Report of the Expert Committee on Micro, Small and Medium Enterprises. RBI.
Ministry of Micro, Small and Medium Enterprises. (2022). Annual Report 2021–22. Government of India.
International Labour Organization. (2021). ILO Monitor: COVID-19 and the world of work. ILO.
Small Industries Development Bank of India. (2021). Impact of COVID-19 on Indian MSMEs. SIDBI.
Government of Tamil Nadu. (2022). MSME sector status report post-COVID. MSME Department.
Copyright (c) 2025 IJRDO - Journal of Business Management
This work is licensed under a Creative Commons Attribution 4.0 International License.
Author(s) and co-author(s) jointly and severally represent and warrant that the Article is original with the author(s) and does not infringe any copyright or violate any other right of any third parties, and that the Article has not been published elsewhere. Author(s) agree to the terms that the IJRDO Journal will have the full right to remove the published article on any misconduct found in the published article.
This work is licensed under a 