Role of Insurance in the Development of India’s Micro, Small and Medium Enterprises
This paper investigates the role of Insurance in the development of Micro, Small and Medium Enterprises (MSMEs) in India. MSMEs have been accepted as a crucial component of an economy irrespective of the phase of development it is in. It is estimated that more than 95% of the enterprises across the...
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| Format: | Article |
| Language: | English |
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UiTM Press
2019-12-01
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| Series: | Journal of International Business, Economics and Entrepreneurship |
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| Online Access: | https://journal.uitm.edu.my/ojs/index.php/JIBE/article/view/1226 |
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| author | Abhijit Chakraborty Ashim Kr Das |
| author_facet | Abhijit Chakraborty Ashim Kr Das |
| author_sort | Abhijit Chakraborty |
| collection | DOAJ |
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This paper investigates the role of Insurance in the development of Micro, Small and Medium Enterprises (MSMEs) in India. MSMEs have been accepted as a crucial component of an economy irrespective of the phase of development it is in. It is estimated that more than 95% of the enterprises across the world are MSMEs, employing around 60% people in the private sector. The MSMEs are considered key elements in the development of every nation. In India, MSME sector contributed 28.77% in GDP in 2016-17 with 63 million enterprises and employment of 110 million people. Despite its size, MSMEs cumulatively act as foundation of a stable economy and plays a significant role in the sustainable economic growth of a nation. However, the inherent features of MSMEs including limited financial and managerial capability cause them to face financial and strategic risks. Sustainability of the MSMEs can be supported by eliminating the credit gap and ensuring enhanced access to finance. The provision of financial support by financial intermediaries like banks can be augmented with proper risk management by the MSMEs with the help of Insurance Sector. The study concludes that insurance can play a significant role in the development of MSMEs by providing them adequate risk protection and thus enhancing their access to finance
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| format | Article |
| id | doaj-art-dc7ccfff21ee48389aa5be6855316f4b |
| institution | OA Journals |
| issn | 2550-1429 |
| language | English |
| publishDate | 2019-12-01 |
| publisher | UiTM Press |
| record_format | Article |
| series | Journal of International Business, Economics and Entrepreneurship |
| spelling | doaj-art-dc7ccfff21ee48389aa5be6855316f4b2025-08-20T02:32:46ZengUiTM PressJournal of International Business, Economics and Entrepreneurship2550-14292019-12-0142Role of Insurance in the Development of India’s Micro, Small and Medium EnterprisesAbhijit Chakraborty0Ashim Kr Das1Department of Management Studies, National Institute of Technology Silchar, Silchar-788010, Assam, IndiaDepartment of Management Studies, National Institute of Technology Silchar, Silchar-788010, Assam, India This paper investigates the role of Insurance in the development of Micro, Small and Medium Enterprises (MSMEs) in India. MSMEs have been accepted as a crucial component of an economy irrespective of the phase of development it is in. It is estimated that more than 95% of the enterprises across the world are MSMEs, employing around 60% people in the private sector. The MSMEs are considered key elements in the development of every nation. In India, MSME sector contributed 28.77% in GDP in 2016-17 with 63 million enterprises and employment of 110 million people. Despite its size, MSMEs cumulatively act as foundation of a stable economy and plays a significant role in the sustainable economic growth of a nation. However, the inherent features of MSMEs including limited financial and managerial capability cause them to face financial and strategic risks. Sustainability of the MSMEs can be supported by eliminating the credit gap and ensuring enhanced access to finance. The provision of financial support by financial intermediaries like banks can be augmented with proper risk management by the MSMEs with the help of Insurance Sector. The study concludes that insurance can play a significant role in the development of MSMEs by providing them adequate risk protection and thus enhancing their access to finance https://journal.uitm.edu.my/ojs/index.php/JIBE/article/view/1226MSMEs, Entrepreneurship, Risk management, Insurance, Sustainability |
| spellingShingle | Abhijit Chakraborty Ashim Kr Das Role of Insurance in the Development of India’s Micro, Small and Medium Enterprises Journal of International Business, Economics and Entrepreneurship MSMEs, Entrepreneurship, Risk management, Insurance, Sustainability |
| title | Role of Insurance in the Development of India’s Micro, Small and Medium Enterprises |
| title_full | Role of Insurance in the Development of India’s Micro, Small and Medium Enterprises |
| title_fullStr | Role of Insurance in the Development of India’s Micro, Small and Medium Enterprises |
| title_full_unstemmed | Role of Insurance in the Development of India’s Micro, Small and Medium Enterprises |
| title_short | Role of Insurance in the Development of India’s Micro, Small and Medium Enterprises |
| title_sort | role of insurance in the development of india s micro small and medium enterprises |
| topic | MSMEs, Entrepreneurship, Risk management, Insurance, Sustainability |
| url | https://journal.uitm.edu.my/ojs/index.php/JIBE/article/view/1226 |
| work_keys_str_mv | AT abhijitchakraborty roleofinsuranceinthedevelopmentofindiasmicrosmallandmediumenterprises AT ashimkrdas roleofinsuranceinthedevelopmentofindiasmicrosmallandmediumenterprises |