Magnitude of Financial Distress in Micro, Small and Medium Enterprises (MSMES) in Bihar, India: A Test of Altman Z’ Score

Abstract

Micro, Small and Medium Enterprises (MSMEs) play a crucial role in equitable upliftment and development of economy. Although these sectors are contributing to economy through generation of employment, supply products, services through indigenous and modern technology, promote social entrepreneurship, reduce regional disparities, and promote equitable income opportunities as well strengthen the balance of trade of the economy. MSMEs are facing actuate deficiency of management which leads to organization in to financial deficiency. Financial Distress in the MSMEs is common for all economy of the world, which has been major concern for the academicians, experts, professional, society, creditors and government. This study identifies the prediction of sickness in MSMEs in Bihar with the help of Altman Z’ Score. The study employs the statistical and financial methods to analyze the data collected in the study. The study identifies financial distress in small and medium enterprises through their balance sheet and profit and loss account. The study came out with proper strategy and policy related to revival of the enterprise from the financial sickness and preventing them from industrial sickness.

Bankruptcy forecast analysis: empirical study of the manufacturing subsector of Norte de Santander, Colombia

“…This aspect highlights the importance of integrating risk management into financial analysis and strategic planning, especially in sectors subject to high uncertainty and dynamism such as manufacturing. (Prakash & Verma, 2019) (McCay et al, 2019 . In the regional context it plays a fundamental role in determining the financial strength and resilience of companies in the face of bankruptcy (Mohammed, 2016).…”