Volume-12, Issue-2 (July-December)
2025
Pages: 429-439
Open Access
DOI: https://doi.org/10.5281/zenodo.21295733
FINANCING CHALLENGES OF SMALL-SCALE INDUSTRIES IN UTTARAKHAND: A REVIEW
Anil Kumar Dangwal
India
Abstract
Small Scale Industries (SSIs) have as a significant element of Uttarakhand’s industrial as well as economic development. It is not even generating employment, promoting
entrepreneurship, it is also supporting commercial growth of the state. But access to adequate and timely finance be a major challenge for small-scale industries and it’s affecting the growth of state. Study conducted by Mohan (2006) highlighted the importance of institutional credit in supporting small enterprise growth, while Singh and Wasdani (2016) identified insufficient collateral, low financial literacy, and procedural complexities of funding as major barriers for credit accessibility among Indian small-scale industries. The present study was a review-based study that synthesized evidence from previous surveys, government reports, and research. Study also aimed to examine the funding problems faced by small-scale industries in Uttarakhand. The methodology adopts for this study is a descriptive review-based research design and relies exclusively on secondary data. Relevant information was collected from government reports, committee reports, survey findings, and previous published research studies related to small-scale industries and financing issues in Uttarakhand. The present review study identified that inadequate institutional credit, high borrowing costs, delayed loan approvals, poor financial record-keeping, inadequate awareness of government support schemes, and poor market linkages as the major financing
problems affecting small-scale industries in Uttarakhand. The findings also concluded that small scale industries in remote and hilly districts experience greater financial exclusion as compared to those located in urban centres and plain terrain. The study highlighted that strengthening credit guarantee system, improved banking outreach in hill regions, promoting digital financial services, enhancing financial literacy, and increasing awareness of government support schemes and programmes are essential for improving access to finance among small-scale industries in Uttarakhand. These measures can contribute to balanced regional industrial development and improve the long-term sustainability of the state’s small scale industrial sector.
entrepreneurship, it is also supporting commercial growth of the state. But access to adequate and timely finance be a major challenge for small-scale industries and it’s affecting the growth of state. Study conducted by Mohan (2006) highlighted the importance of institutional credit in supporting small enterprise growth, while Singh and Wasdani (2016) identified insufficient collateral, low financial literacy, and procedural complexities of funding as major barriers for credit accessibility among Indian small-scale industries. The present study was a review-based study that synthesized evidence from previous surveys, government reports, and research. Study also aimed to examine the funding problems faced by small-scale industries in Uttarakhand. The methodology adopts for this study is a descriptive review-based research design and relies exclusively on secondary data. Relevant information was collected from government reports, committee reports, survey findings, and previous published research studies related to small-scale industries and financing issues in Uttarakhand. The present review study identified that inadequate institutional credit, high borrowing costs, delayed loan approvals, poor financial record-keeping, inadequate awareness of government support schemes, and poor market linkages as the major financing
problems affecting small-scale industries in Uttarakhand. The findings also concluded that small scale industries in remote and hilly districts experience greater financial exclusion as compared to those located in urban centres and plain terrain. The study highlighted that strengthening credit guarantee system, improved banking outreach in hill regions, promoting digital financial services, enhancing financial literacy, and increasing awareness of government support schemes and programmes are essential for improving access to finance among small-scale industries in Uttarakhand. These measures can contribute to balanced regional industrial development and improve the long-term sustainability of the state’s small scale industrial sector.