IDEAS home Printed from https://ideas.repec.org/a/taf/ucsbxx/v7y2026i2p490-503.html

Business obstacles to the growth of small and medium-sized enterprises in India: Evidence from enterprise surveys

Author

Listed:
  • Kizhakkeppat Vidyarani
  • Thangamani Maheshkumar

Abstract

Small and medium-sized enterprises (SMEs) play a vital role in India’s economic development but face several challenges that hinder their growth. This study uses the data from World Bank enterprise surveys from 2014 to 2022 to identify key obstacles to the growth of SMEs, and their determining factors. The descriptive results highlight access to finance, tax rates, informal sector competition, corruption, and customs regulations as the most significant barriers, with financial constraints being particularly prominent. Using probit regression analysis, the study examines how firm size, business structure, managerial experience, international certification, business stage, and regional variations influence these challenges. Notably, regional disparities are evident in financial accessibility, taxation burdens, market competition, and corruption-related issues. The findings provide critical policy recommendations to address the unique barriers faced by SMEs, considering firm-specific and regional characteristics, thereby fostering a more supportive business environment in India.

Suggested Citation

  • Kizhakkeppat Vidyarani & Thangamani Maheshkumar, 2026. "Business obstacles to the growth of small and medium-sized enterprises in India: Evidence from enterprise surveys," Journal of the International Council for Small Business, Taylor & Francis Journals, vol. 7(2), pages 490-503, April.
    • Handle: RePEc:taf:ucsbxx:v:7:y:2026:i:2:p:490-503
    DOI: 10.1080/26437015.2025.2510514
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/26437015.2025.2510514
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/26437015.2025.2510514?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:ucsbxx:v:7:y:2026:i:2:p:490-503. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/ucsb .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.