FINANCIAL MANAGEMENT AS A DETERMINANT OF PROFITABILITY a STUDY OF MSME IN ODISHA

Abstract

Micro, Small and Medium Enterprise (MSME) sector has emerged as a highly vibrant and newlinedynamic sector of the Indian economy over the last five decades. MSMEs not only play a crucial role newlinein providing large employment opportunities at comparatively lower capital cost than large industries newlinebut also help in industrialization of rural and backward areas, thereby, reducing regional imbalances, newlineassuring more equitable distribution of national income and wealth. MSMEs are complementary to newlinelarge industries as ancillary units and this sector contributes enormously to the socio-economic newlinedevelopment of the country. newlineThe MSME sector consisting of 36 million units, as of today, provides employment to over 80 newlinemillion persons. The Sector through more than 6,000 products contributes about 8% to GDP besides newline45% to the total manufacturing output and 40% to the exports from the country. The MSME sector newlinehas the potential to spread industrial growth across the country and can be a major partner in the newlineprocess of inclusive growth. newline