Globalization’s Influence on MSME’s & Their Role in Economic Development: A Comparative Analysis

Abstract

This study critically examines the dual-edged impact of globalization on Micro, Small, & Medium Enterprises (MSMEs) & their consequential role in fostering economic development. Despite globalization offering unparalleled opportunities for market expansion, technological advancements, & cross-border partnerships, MSMEs face exacerbated issues, including intense competition from multinational corporations, regulatory complexities, & the volatility of global markets. This research underscores the critical importance of governmental support & intervention in ensuring the survival & growth of MSMEs in this globalized landscape. Through a comparative analysis, the study highlights various schemes such as the Credit Guarantee Fund Scheme for Micro & Small Enterprises, the Micro Units Development & Refinance Agency (MUDRA) loans, & the recent focus on digital empowerment initiatives that aim to enhance competitiveness & operational efficiency among MSMEs. This paper argues that while globalization presents significant issues for MSMEs, strategic government policies & support schemes are vital in leveraging the benefits of globalization, ultimately contributing to sustainable economic development. The findings aim to inform policymakers & stakeholders about the nuanced role of MSMEs in the global economy, advocating for a balanced approach that nurtures growth while mitigating risks associated with globalization.