<p>The research investigates major hurdles that MSMEs encounter in securing public equity funding. The research identifies multiple barriers that affect MSMEs when they attempt to access public equity funding through intermediaries, internal factors, regulatory requirements, and investor preferences. The research conducts a comprehensive literature review, which establishes theoretical foundations to determine the essential elements that affect MSME equity financing through intermediaries, internal resources, regulatory frameworks, and investor perspectives. The research data originated from Indian Stock Market MSMEs, and researchers applied Partial Least Squares Structural Equation Modelling (PLS-SEM) for analysis. The research findings show that MSMEs face three main barriers, which include intermediate barriers (β = 0.41), internal barriers (β = 0.38), and regulatory barriers (β = 0.32) that create significant hurdles for MSME financing through public equity. The research paper proposed a framework that suggests that MSMEs face two primary challenges: they lack access to public equity markets, and their intermediaries provide insufficient support due to operational failures and knowledge deficits. The research work elucidates the policy framework that guides MSME owners, regulators, and policymakers to enhance public equity market access by streamlining listing processes, improving intermediary assistance, and creating beneficial regulatory conditions. This study also has implications for MSMEs' financing and makes some policy recommendations on improving the participation of MSMEs in financing through public equity.</p>

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Navigating financial hurdles: identifying and analysing barriers in micro, small, and medium enterprises (MSMEs) financial inaccessibility through public equity

  • Vikrant Vikram Singh,
  • Chandan Kumar Tiwari,
  • Mohd. Abass Bhat,
  • Aditya Kumar Gupta,
  • Abhinav Pal,
  • P. K. Kapur

摘要

The research investigates major hurdles that MSMEs encounter in securing public equity funding. The research identifies multiple barriers that affect MSMEs when they attempt to access public equity funding through intermediaries, internal factors, regulatory requirements, and investor preferences. The research conducts a comprehensive literature review, which establishes theoretical foundations to determine the essential elements that affect MSME equity financing through intermediaries, internal resources, regulatory frameworks, and investor perspectives. The research data originated from Indian Stock Market MSMEs, and researchers applied Partial Least Squares Structural Equation Modelling (PLS-SEM) for analysis. The research findings show that MSMEs face three main barriers, which include intermediate barriers (β = 0.41), internal barriers (β = 0.38), and regulatory barriers (β = 0.32) that create significant hurdles for MSME financing through public equity. The research paper proposed a framework that suggests that MSMEs face two primary challenges: they lack access to public equity markets, and their intermediaries provide insufficient support due to operational failures and knowledge deficits. The research work elucidates the policy framework that guides MSME owners, regulators, and policymakers to enhance public equity market access by streamlining listing processes, improving intermediary assistance, and creating beneficial regulatory conditions. This study also has implications for MSMEs' financing and makes some policy recommendations on improving the participation of MSMEs in financing through public equity.