Abstract

Governance and Professional Support in Accessing PMEGP 2.0: A Study of Micro Enterprises in Mysuru District

Manjula M L

Volume: 15 Issue: 4 2025

Abstract:

The Prime Minister's Employment Generation Programme (PMEGP) provides a credit-linked margin money subsidy for new micro enterprises and, since 2018-19, a second financial assistance (second loan) to existing PMEGP, REGP and MUDRA units for upgradation and expansion. This study examines how micro enterprises in Mysuru district, Karnataka, access this second assistance, focusing on awareness, as an indicator of the governance of scheme communication, and on the sources of professional support they rely upon. A sample of 200 Udyam-registered micro enterprises that had availed earlier assistance under PMEGP, MUDRA or REGP was selected by simple random sampling. Data were analysed using percentage analysis, chi-square goodness-of-fit tests, one-sample tests of proportion with 95 per cent confidence intervals, and conditional binomial comparisons. Only 23.0 per cent of respondents reported high awareness of the second assistance (95% CI: 17.2–28.8%), significantly below one-half (z = −7.64, p < 0.001). As many as 87.0 per cent relied on professional support (z = 10.47, p < 0.001). Chartered accountants were the most frequently used source (29.0%) and were consulted significantly more often than DIC/KVIC/KVIB officials (18.0%; χ² = 5.15, p = 0.023), while private professionals (46.0%) and institutional sources (41.0%) were used to a similar extent (p = 0.448). Machinery and technology upgrading (31.0%) was the leading purpose, and demand was evenly split between modernisation and expansion (p = 0.882). The findings show that access to PMEGP second assistance depends heavily on intermediaries and call for proactive information dissemination and stronger institutional facilitation.

Back Download

References

• Bank of Maharashtra. (n.d.). Pradhan Mantri Employment Generation Program (PMEGP). https://bankofmaharashtra.bank.in/pmegp
• Beck, T., & Demirgüç-Kunt, A. (2006). Small and medium-size enterprises: Access to finance as a growth constraint. Journal of Banking & Finance, 30(11), 2931–2943.
• Berry, A. J., Sweeting, R., & Goto, J. (2006). The effect of business advisers on the performance of SMEs. Journal of Small Business and Enterprise Development, 13(1), 33–47
• Choudhury, S., & Ghosh, A. (2015). Economic development through Prime Minister Employment Generation Programme in India: An analysis. Mediterranean Journal of Social Sciences, 6(3), 435–444. https://doi.org/10.5901/mjss.2015.v6n3p435
• Cohen, J. (1988). Statistical power analysis for the behavioral sciences (2nd ed.). Lawrence Erlbaum Associates.
• Delhi Khadi and Village Industries Board. (n.d.). Revised scheme guidelines of Prime Minister Employment Generation Programme (PMEGP). Government of NCT of Delhi.
• Development Commissioner (MSME). (n.d.). Brief industrial profile of Mysore district. MSME Development Institute, Bangalore. https://dcmsme.gov.in/dips/Mysore%20District.pdf
• Gooderham, P. N., Tobiassen, A., Døving, E., & Nordhaug, O. (2004). Accountants as sources of business advice for small firms. International Small Business Journal, 22(1), 5–22.
• Government of India. (2006). The Micro, Small and Medium Enterprises Development Act, 2006 (Act No. 27 of 2006)
• Khadi and Village Industries Commission. (n.d.). PMEGP e-portal. https://www.kviconline.gov.in/pmegpeportal/ Ministry of Finance. (2025). Budget 2025-26: Speech of Nirmala Sitharaman, Minister of Finance (1 February 2025). Government of India
• Ministry of Micro, Small and Medium Enterprises. (2020). Notification S.O. 2119(E) dated 26 June 2020. The Gazette of India: Extraordinary
• Ministry of Micro, Small and Medium Enterprises. (2024). Implementation of PMEGP (Lok Sabha Unstarred Question No. 1743, answered on 1 August 2024). https://eparlib.nic.in/bitstream/123456789/2978890/1/AU1743_yUrmzU.pdf
• Ministry of Micro, Small and Medium Enterprises. (2025a). Notification S.O. 1364(E) dated 21 March 2025. The Gazette of India: Extraordinary.
• Ministry of Micro, Small and Medium Enterprises. (2025b). PMEGP in Shahjahanpur (Lok Sabha Unstarred Question No. 5393, answered on 3 April 2025). https://eparlib.sansad.in/bitstream/123456789/3010548/1/AU5393_icEm2i.pdf
• Press Information Bureau. (2022). Continuation of the on-going plan scheme PMEGP over the 15th Finance Commission cycle from 2021-22 to 2025-26 with an outlay of Rs. 13554.42 crore. https://www.pib.gov.in/Pressreleaseshare.aspx?PRID=1829437
• Press Information Bureau. (2024a). The MSME revolution: Transforming India's economic landscape (23 December 2024). https://static.pib.gov.in/WriteReadData/specificdocs/documents/2024/dec/doc20241223476301.pdf
• Press Information Bureau. (2024b). Year End Review 2024: Ministry of Micro, Small and Medium Enterprises. Government of India.
• Reserve Bank of India. (2019). Report of the Expert Committee on Micro, Small and Medium Enterprises. Reserve Bank of India.
• Sajna, V., & Dharmaraj, A. (2024). Awareness of central sector scheme among the entrepreneurs in MSME sector: An investigative study. Indian Journal of Information Sources and Services, 14(3), 115–122. https://doi.org/10.51983/ijiss-2024.14.3.16
• Takahashi, K., & Hashimoto, Y. (2023). Small grant subsidy application effects on productivity improvement: Evidence from Japanese SMEs. Small Business Economics, 60(4), 1631–1658.