Financing Challenges and Practices for Small ...

Financing Challenges and Practices for Small and Medium Textile Enterprises in Tamil Nadu: An Empirical Study

Author Name : M. Kokila, Dr. R. Nagalakshmi

ABSTRACT Tamil Nadu is a leading force in India's textile industry, contributing ₹586.3 billion, or 21.84% of the nation's textile exports, as of FY 2023-2024. Small and Medium Enterprises (SMEs) in this sector play a crucial role in job creation and economic development, yet they face significant financing challenges that limit their growth. This empirical study investigates the financing practices and constraints of SMEs in Tamil Nadu's textile and clothing industry, focusing on barriers such as loan accessibility, high interest rates, and inadequate collateral. These financial hurdles negatively impact business operations, competitiveness, and sustainability. The research aims to assess the effects of these challenges on daily activities and overall performance, ultimately providing actionable recommendations to enhance financial access for SMEs. By addressing these issues, the study seeks to improve the contributions of SMEs to the economy and fill a critical gap in understanding their financial landscape.