The Impact of Digital Banking on the Growth of Micro, Small and Medium Enterprises (MSMES) in India: A Case Study

Business: Theory and Practice; 22 (1), 18–28. Doi.org/10.3846/btp.2021.12856

11 Pages Posted: 29 Jan 2021

See all articles by Bharat Kumar Meher

Bharat Kumar Meher

Department of Commerce, Manipal Academy of Higher Education, Karnataka, India

Iqbal Thonse Hawaldar

Kingdom University

Latasha Mohapatra

Manipal Academy of Higher Education (MAHE) - Department of Commerce

Cristi Marcel Spulbar

University of Craiova - Faculty of Economics and Business Administration

Felicia Ramona Birau

University of Craiova - Faculty of Social Science

Cristian Rebegea

University of Craiova - Faculty of Economics and Business Administration

Date Written: 2020

Abstract

Purpose: The purpose of this paper is to formulate a multiple regression model by considering those factors which are positively affecting the growth of Micro, Small and Medium Enterprises (MSMEs) in India.

Methodology: The data used in this study are primary in nature which are collected through questionnaire method. The questionnaire involves the nature and size of business and opinion of the owners and managers of 454 MSMEs in Katihar district, a semi-urban area of Bihar in India, regarding the various favorable factors of digital banking on a Likert scale of
1 to 10.

Findings: The findings of the study suggest the various favorable factors of digital banking with significant coefficients i.e. Level of Easiness in accepting payments, Level of Easiness in making payments, Level of Easiness in Managing the expenditure of Business, Level of Time Saving, and Level of Check on Misappropriation or Theft of Cash are contributing towards the growth of MSMEs in India.


Research Implications: This research will be helpful to the bank managers and policymakers to encourage the MSMEs of semi-urban areas to use digital banking by stressing on only significant favorable factors and also to take necessary steps so that the MSMEs could reap the full benefits of digital banking. The study could give a new insight regarding the extent of contribution of digital banking towards the growth of MSMEs in rural and semi-urban area.

Keywords: MSMEs, Digital Banking, E-Banking, Multiple Regression, Customer, Business, THE IMPACT OF DIGITAL BANKING ON THE GROWTH OF MICRO, SMALL AND MEDIUM ENTERPRISES (MSMES) IN INDIA

JEL Classification: C30, O3, E59

Suggested Citation

Meher, Bharat Kumar and Hawaldar, Iqbal Thonse and Mohapatra, Latasha and Spulbar, Cristi Marcel and Birau, Felicia Ramona and Rebegea, Cristian, The Impact of Digital Banking on the Growth of Micro, Small and Medium Enterprises (MSMES) in India: A Case Study (2020). Business: Theory and Practice; 22 (1), 18–28. Doi.org/10.3846/btp.2021.12856, Available at SSRN: https://ssrn.com/abstract=3770889

Bharat Kumar Meher

Department of Commerce, Manipal Academy of Higher Education, Karnataka, India ( email )

Tiger Circle Road, Madhav Nagar, Manipal, Karnatak
Udupi, 576104
India
9853340710 (Phone)

Iqbal Thonse Hawaldar (Contact Author)

Kingdom University ( email )

Sanad
Bahrain

Latasha Mohapatra

Manipal Academy of Higher Education (MAHE) - Department of Commerce

Tiger Circle Road, Madhav Nagar, Manipal, Karnatak
Udupi, 576104
India

Cristi Marcel Spulbar

University of Craiova - Faculty of Economics and Business Administration

Craiova
Romania

Felicia Ramona Birau

University of Craiova - Faculty of Social Science ( email )

Romania

Cristian Rebegea

University of Craiova - Faculty of Economics and Business Administration

Craiova
Romania

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