Impact Of Opportunity Costs On Financial Sustainability Of Msmes In Emerging Economies Like India

This paper is an attempt to analyse the impact of opportunity costs on the financial sustainability of Micro, Small, and Medium Enterprises (MSMEs) in India. Using secondary data from sources such as World Bank reports and MSME surveys, the study examines how opportunity costs influence key financial decisions, including resource allocation and investments. The research finds that while opportunity costs are theoretically recognized, their practical application is often overlooked by MSMEs due to limited financial literacy and resource constraints. The paper concludes by suggesting policy measures to improve financial awareness and decision-making within MSMEs, ultimately enhancing their financial sustainability in an emerging economy like India.

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Publication Details

Journal
Zenodo (CERN European Organization for Nuclear Research)
Published
2025-02-27
DOI
https://doi.org/10.5281/zenodo.14936426
Primary Topic
Working Capital and Financial Performance
Type
article
Field-Weighted Citation Impact
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article

Impact Of Opportunity Costs On Financial Sustainability Of Msmes In Emerging Economies Like India

Zenodo (CERN European Organization for Nuclear Research)
Working Capital and Financial Performance
article

Impact Of Opportunity Costs On Financial Sustainability Of Msmes In Emerging Economies Like India

article en

Abstract

This paper is an attempt to analyse the impact of opportunity costs on the financial sustainability of Micro, Small, and Medium Enterprises (MSMEs) in India. Using secondary data from sources such as World Bank reports and MSME surveys, the study examines how opportunity costs influence key financial decisions, including resource allocation and investments. The research finds that while opportunity costs are theoretically recognized, their practical application is often overlooked by MSMEs due to limited financial literacy and resource constraints. The paper concludes by suggesting policy measures to improve financial awareness and decision-making within MSMEs, ultimately enhancing their financial sustainability in an emerging economy like India.

Zenodo (CERN European Organization for Nuclear Research)
Indian Numismatic, Historical and Cultural Research Foundation (IN), Kranj School Centre (SI)
Quality Education
Openalex Percentile: Top 43%
Working Capital and Financial Performance
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