Financial Aspects of MSMEs in Dharwad District

Abstract Introduction: MSMEs in Dharwad district, especially those located in industrial areas like Belur and Gokul, are important for creating jobs and supporting manufacturing, and they play a key role in the growth of Karnataka's industry. These businesses mainly depend on bank loans, government support such as subsidies from the District Industries Centre (DIC), and growing help from micro-finance institutions. Objectives of Study: The study aims to look at how MSMEs manage their cash flow, keep their money liquid, make profits, and ensure they are financially stable. Research methodology: This research usually involves collecting primary data from around 50 businesses, focusing on their capital structure, cash management, and the ease of getting credit. Many studies look at industrial areas like Belur and use questionnaires with a Likert scale, which are then analyzed using SPSS to determine if the results are statistically significant. Data analysis: Data analysis of MSMEs in Dharwad district shows that they rely heavily on microfinance to keep their businesses going. However, many still face major financial challenges due to a lack of collateral, high interest rates, and difficulty in getting enough working capital from banks. Findings: Many of these units are having trouble with a lack of working capital, and the loans they get from banks are often not enough, according to Nehru College Hubli. Recommendations: Move from using rough estimates to a more accurate way of calculating cash flow to prevent financial issues. Conclusion: MSMEs in the Dharwad district play an important role in the region's economy and provide employment opportunities, but they face several financial challenges.