Perception of Small-Scale Entrepreneurs Towards Government Support in Uttarakhand

Abstract

Entrepreneurship is seen as a driving force for economic development and job creation. Hence, the government offers different forms of support to entrepreneurs. Many researchers have examined the effectiveness of government support. However, the question of how small-scale entrepreneurs perceive government assistance remains unanswered. The study seeks to assess the perception of small-scale entrepreneurs towards government support and also tries to explore some underlying factors pertaining to government support towards entrepreneurship development in Uttarakhand. The study is based on primary data collected from 240 small-scale entrepreneurs, using a self-structured questionnaire. Descriptive statistics and principal component analysis (PCA) were used to interpret the results. It has been found that small-scale entrepreneurs have a positive perception towards single window clearance system, investment promotion facility centre and timelines for business approvals. The study further found that small-scale entrepreneurs have a negative perception towards the interest rate, transparency in loan sanctioning and the behaviour of the employees of financial institutions. The study also extracted three important factors from PCA and named them as an online support system, transparency and financial support.

Determinants of Access to Formal Credit for the Micro, Small and Medium Enterprises in India: An Inter-regional Analysis

“…For the growth and sustained development of the economy, SMEs need adequate access to finance. It would promote sustainable entrepreneurship and thereby helps to graduate from the micro to small to medium enterprises (Joshi et al, 2021; Kiiru, 2007) and encourage community participation in the MSME sector (Hamzah et al, 2020).…”