Indian Journal of Economics and Development

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Impact of Karnataka State Finance Corporation on Micro, Small and Medium Enterprise Development in Karnataka, India


Affiliations
1 Department of Agricultural Economics, UAS, Raichur-584 102, India
2 Department of Agricultural Economics, College of Agriculture, Kalaburagi-585 101, India
3 Agricultural Research Station, Yadgir district, Bheemarayanagudi- 585287, India
 

Objectives: To assess the institutional support to micro, small and medium enterprise development in Karnataka and socio economic characteristics of entrepreneur.

Methods/Statistical Analysis: The Hyderabad-Karnataka region was purposively selected which is an industrially backward region of Karnataka. Five respondents from each district constituting total sample size of 30 ABI owners who have borrowed loan from KSFC's were selected. The secondary data was collected from KSFC for the period of 14 years from 2001 to 2015. To analyse the objectives tabular analysis, compound growth rate and simple averages and percentages are worked out.

Results: Hederabad-Karnataka is industrial backward region in the state wherein Karnataka State Financial Corporation (KSFC) played important role and it accounted 33.78 and 12.31 per cents of total Agro Based Industries (ABI) and Non-ABI sanctioned in the state respectively. Majority of the scheme introduced by KSFC have shown positive and significant growth except National Equity Fund, Mahila Udyam Nidhi, Technology Upgradation Fund and Credit Linked Capital Subsidy. The maximum benefit availed by ABI owners was from Mahila Udyam Nidhi ( 3.86 lakhs) followed by interest subsidy scheme for SC/ST entrepreneurs ( 3.17 lakhs), energy saving scheme ( 1.40 lakhs) with total subsidize interest rate benefit of 11.89 lakhs.

Applications: Majority of scheme operated by KSFC have shown positive growth in terms of distribution of credit to agro based industries. Government should establish more number of Agro Industry in the region to improve livelihood of rural poorer.


Keywords

Agro Industries, Corporation, Growth, Enterprises and Scheme.
User
Notifications

  • Anonymous. Annual report of Karnataka State Financial Corporation, Bangaluru. 2015, 7-14.

  • Anonymous. Karnataka agribusiness and food processing policy 2016. Karnataka State Financial Corporation news report. 2016; 7(4), 8-11.

  • Laxmikantreddy, Ratna Kumari. Performance of Agro based industries in India: A critical analysis. Journal of Economics and Finance. 2014; 2(4), 15-25.

  • C.S. Avinash, B.S. Reddy Comparative economic efficiency of modern and traditional redgram processing mills in Karnataka. Indian Journal of Economics and Development.2014; 2(5), 103-111.

  • Balappa Shivaraya. Performance of dal industry in Gulbarga district. Karnataka Journal of Agricultural Sciences. 2003; 16(2), 111-117.

  • Anonymous. Karnataka agribusiness and food processing policy with special. Reference to Hyderabad Karnataka region. District Industrial Corporation, news report. 2015; 6(3), 21-26.


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  • Impact of Karnataka State Finance Corporation on Micro, Small and Medium Enterprise Development in Karnataka, India

Abstract Views: 315  |  PDF Views: 340

Authors

Hiregouda Nagaraj
Department of Agricultural Economics, UAS, Raichur-584 102, India
B. S. Reddy
Department of Agricultural Economics, College of Agriculture, Kalaburagi-585 101, India
D. G. Satihal
Agricultural Research Station, Yadgir district, Bheemarayanagudi- 585287, India

Abstract


Objectives: To assess the institutional support to micro, small and medium enterprise development in Karnataka and socio economic characteristics of entrepreneur.

Methods/Statistical Analysis: The Hyderabad-Karnataka region was purposively selected which is an industrially backward region of Karnataka. Five respondents from each district constituting total sample size of 30 ABI owners who have borrowed loan from KSFC's were selected. The secondary data was collected from KSFC for the period of 14 years from 2001 to 2015. To analyse the objectives tabular analysis, compound growth rate and simple averages and percentages are worked out.

Results: Hederabad-Karnataka is industrial backward region in the state wherein Karnataka State Financial Corporation (KSFC) played important role and it accounted 33.78 and 12.31 per cents of total Agro Based Industries (ABI) and Non-ABI sanctioned in the state respectively. Majority of the scheme introduced by KSFC have shown positive and significant growth except National Equity Fund, Mahila Udyam Nidhi, Technology Upgradation Fund and Credit Linked Capital Subsidy. The maximum benefit availed by ABI owners was from Mahila Udyam Nidhi ( 3.86 lakhs) followed by interest subsidy scheme for SC/ST entrepreneurs ( 3.17 lakhs), energy saving scheme ( 1.40 lakhs) with total subsidize interest rate benefit of 11.89 lakhs.

Applications: Majority of scheme operated by KSFC have shown positive growth in terms of distribution of credit to agro based industries. Government should establish more number of Agro Industry in the region to improve livelihood of rural poorer.


Keywords


Agro Industries, Corporation, Growth, Enterprises and Scheme.

References