SUSTAINABLE FINANCIAL PRACTICES IN KERALA’S MSME SECTOR: PATHWAYS FOR GROWTH AND RESILIENCE
Abstract
The Micro, Small, and Medium Enterprises (MSMEs) play a vital role in Kerala’s economic development, contributing significantly to employment generation, regional development, and inclusive growth. However, financial sustainability continues to be a major challenge for these enterprises. This study examines the adoption and impact of sustainable financial practices among MSMEs in Kerala. Using primary data collected from 300 MSME owners and financial managers through structured questionnaires, the study evaluates practices such as cost optimization, green financing, efficient credit management, and financial transparency. Statistical analysis using EDUSTAT reveals a positive association between sustainable financial practices and long-term resilience and growth of MSMEs. The findings highlight the need for institutional support, digital integration, and financial literacy to ensure sustainability in the sector. The study provides actionable recommendations to policymakers and stakeholders for enhancing the financial strength and environmental consciousness of MSMEs in Kerala.
Keyword : Sustainable Finance, MSMEs, Kerala
This work is licensed under a Creative Commons Attribution 4.0 International License.
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