Capitalizing on diversity: Role of entrepreneurial and firm attributes in rural MSMEs financial accessibility

Title

Capitalizing on diversity: Role of entrepreneurial and firm attributes in rural MSMEs financial accessibility

Creator

Gautam, Dixita; Tantia, Veerta

Description

Consistent access to credit from formal financial institutions has been a significant challenge for micro-, small, and medium-sized enterprises (MSMEs) in rural areas. Despite contributing to a majority of the workforce in the economy, their failure rates continue to rise. These often indicate an inadequacy in internal determinants, such as limited access to infrastructure, inefficient managerial competencies, low entrepreneurial orientation, and other firm-related attributes. This article investigates how entrepreneurial and firm-specific traits influence the financial accessibility of rural MSMEs in the northeastern state of Assam in India while also considering the role of credit rationing. The current study data were collected from MSME entrepreneurs and analyzed using thematic analysis to explore the variables impacting credit accessibility. The results reveal that entrepreneurial (motivation, education, entrepreneurial orientation) and firm characteristics (firm size, infrastructure, technical know-how) are critical in assessing lenders perception toward borrowers in the complex loan processes. 2025 International Council for Small Business.

Source

Journal of the International Council for Small Business;

Date

01-01-2025

Publisher

Informa UK Ltd

Subject

credit rationing; Entrepreneur attributes; firm attributes; MSME; rural

Coverage

Gautam D., Department of Commerce, Christ (Deemed to Be University), India; Tantia V., Department of Commerce, Christ (Deemed to Be University), India

Rights

Restricted Access; Hardcopy may be available in the library

Relation

ISSN: 26437015;

Format

online

Language

English

Type

Article

Identifier

https://doi.org/10.1080/26437015.2025.2518237

https://www.scopus.com/pages/publications/105010495796?origin=resultslist