Role of Financial Institution Support in Promoting Entrepreneurship among Micro, Small and Medium Enterprises in Madurai District: An Empirical Approach

Abstract

Financial institutions play a significant role in promoting entrepreneurship by providing financial assistance and non-financial support to Micro, Small and Medium Enterprises (MSMEs). The present study examines the role of financial institution support in promoting entrepreneurship among MSMEs in Madurai District. The study adopts a descriptive cross-sectional research design, with data proposed to be collected from 145 MSME entrepreneurs using a structured questionnaire. Stratified sampling is employed to represent micro, small and medium enterprises. The measurement scales are adapted from Marakalla (2018), covering financial support, non-financial support and entrepreneurial development. Descriptive statistics, including mean and standard deviation, are used to examine respondents' perceptions. The illustrative analysis indicates mean scores of 3.60 for financial support, 3.57 for non-financial support and 3.77 for entrepreneurial development. The study highlights the importance of examining both financial assistance and business development services in understanding the contribution of financial institutions to MSME entrepreneurship. The findings are expected to provide useful insights for financial institutions and policymakers in strengthening institutional support mechanisms for sustainable entrepreneurial development.