SIGNIFICANCE OF STUDY

MSMEs play a vital role in the economy of Uttar Pradesh . It has played a very
important role in the socio-economic development of the state from the last few
years .But still this sector still faces problems like lack of capital, capacity
utilisation estimates, changes in government policies and most of all,
competition not only from big industries but also MNCs.
Here, Small Industries Development Bank Of India (SIDBI) is the principal
financial institution for the promotion, financing and development of the MSMEs
sector and for co-ordination of the functions of the institutions engaged in similar
activities. It has been constantly working on building various institutional
competitiveness. It has been constantly working on building various institutional
mechanism to cater to the MSME sector and has set up various associates.
Some requirements of this sector are equity capital, credit rating ,technology
transfer and upgradation. But are the steps and initiatives taken by SIDBI enough
for such upgradation? Is the financial support provided by SIDBI appropriate and
adequate for MSMEs in Uttar Pradesh? Is it easy to seek help and assistance for
any concern under such sector? Are the promotional techniques adopted and the
policies framed by SIDBI benefiting the micro and small industries?
For answering such questions stated above it becomes significant to make a
study over the role of SIDBI in the development of MSMEs in U.P. Through this
study we will look into the various promotional and financial assistance provided
by SIDBI to MSMEs. An analysis will be done to find if the measures taken are
effective and sufficient or not. Also suggestions regarding taking more effective
steps to develop MSME sector in U.P. will be given.
Hypothesis:
Hypothesis may be defined as a proposed explanation for a phenomenon. It is a
set forth as an explanation for the occurrence of some specific group of
phenomenon either asserted merely as a provisional conjecture to guide some
investigation accepted as highly probable in the light of established facts.
Hypothesis assumed for this research study is:
Small Industries Development Bank of India plays a significant role in promoting
Micro, Small and Medium enterprises Sector in U.P.
SIDBI has a significant share in financial assistance provided to MSME sector in
U.P.
OBJECTIVES OF STUDY:
1. To study the various promotional activities conducted by SIDBI.
2. To study how significant is the financial assistance provided by SIDBI.
PERIOD OF STUDY

Study is intended to be done from 2006 after the MSMED act was passed till
2014(2006-2014)

COVERAGE OF STUDY
This study is to be done to find out the extent of support provided by SIDBI to
MSMEs in the state of Uttar Pradesh.

PLAN OF STUDY
1.
2.
3.
4.
5.
6.
7.

Introduction
Review of literature and research design.
Small Industries Development Bank of India; An overview
Micro Small and Medium Enterprises sector in U.P. ; A profile
Role of SIDBI in financing MSMEs ; Assistance and lending
Promotion and development of activities of SIDBI.
Finding and Suggestions.