The Role of Microfinance Institutions in the Performance of MSMEs within the Indian Economy: An Analytical Study in Tirunelveli

Abstract: This research paper examines the role of microfinance institutions (MFIs) in the performance of Micro, Small, and Medium Enterprises (MSMEs) within the Indian economy, specifically in Tirunelveli. The study aims to address a gap in the literature by investigating the impact of MFIs on MSME performance. A survey was conducted involving 120 MSME proprietors using an interview schedule. The data collected from respondents were analyzed and interpreted using the Statistical Package for the Social Sciences (SPSS). Frequency distributions and Chi-square tests were employed to interpret the results. The findings indicate that access to adequate microfinance positively impacts business sales volume, profits, and capital.