Commercial Bank Finance and Sickness: A study of Micro and Small Engineering Enterprises in the District of Howrah, West Bengal

Abstract

In any developing country like India, Micro and Small Enterprises (MSEs) can be considered as the most strengthening source in socio-economic development. But distressingly enough, the very sector cannot get itself protected from sickness which spreads its wings in every state of India. In this regard, West Bengal (WB) is specially mentionable mainly due to the moribund condition of Micro and Small Engineering Enterprises of Howrah, the former Birmingham/Sheffield of the East. As per the All India Fourth Census Report (2006-2007), Shortage of Working Capital is the most severe cause of sickness of MSEs. Among different sources of finance of MSEs, Commercial Banks are the main ones. But sometimes, their unfriendly attitude to the concerned sector forces the same to face financial deficiencies which pull the enterprises to become sick. The present paper aims at identifying how much and to what extent the finance related causes in association with the Commercial Banks are responsible in bringing about sickness in Micro and Small Engineering Enterprises in Howrah and recommending some remedial measures following descriptive research methodology.