Empirical Study of Effects of Government Support Scheme on the Financial Performance of MSMEs in the selected Districts of Tamil Nadu

Abstract: Micro, Small and Medium Enterprise (MSMEs) forms a very important sector of economic framework of India, as it plays a key role in generating employment, industrial production and development of the regions. In Tamil Nadu, the MSMEs are critical in the growth of the sector in manufacturing, textiles, services, and trade. The Central and State Governments have adopted various support schemes, such as credit guarantees, capital subsidies, interest subversion programs and digital assistance programs, to improve their competitiveness and resilience. Nevertheless, there is very little empirical data on how these schemes are effective at the district level.This research paper provides an empirical analysis of how government support schemes affect the financial performance of MSMEs in selected districts of Tamil Nadu. Based on the primary data obtained in the form of registered MSMEs and it is supported with secondary sources, the research will employ the quantitative methodology such as regression analysis to determine the relationship between scheme awareness, availability and the financial metrics of the business enterprise such as profitability, revenue growth and operational stability.The research findings should help provide evidence on the importance of policy interventions on the financial performance of the business enterprise and also identify gaps in the implementation of the schemes. The research has a contribution to the policy evaluation literature in a way that it provides a district-level of understanding and feasible implications to the enhancement of design and delivery of support schemes. Keywords: MSMEs; Government support schemes; Financial performance; Tamil Nadu. Title: Empirical Study of Effects of Government Support Scheme on the Financial Performance of MSMEs in the selected Districts of Tamil Nadu Author: R. Parkavi, Dr. G. Vinayagamoorthi International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online) Vol. 13, Issue 2, October 2025 - March 2026 Page No: 480-486 Research Publish Journals Website: www.researchpublish.com Published Date: 24-February-2026 DOI: https://doi.org/10.5281/zenodo.18754114 Paper Download Link (Source) https://www.researchpublish.com/papers/empirical-study-of-effects-of-government-support-scheme-on-the-financial-performance-of-msmes-in-the-selected-districts-of-tamil-nadu