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.