2024, Vol. 5, Issue 1, Part G
A study on liquidity and profitability of micro, small and medium enterprises (MSMES) in Assam, India
Author(s): Dr. Gour Gopal Banik and Jugal Kumar Boro
Abstract: Liquidity and solvency are crucial aspects of every business's success. A business's capacity to manage its liquidity is essential to its success. MSME sector is essential for promoting India's social and economic development. It has been recognized as an essential sector in the creation of employment opportunities, poverty reduction and regional development. MSMEs are therefore vital to the nation's economy's development. In this study, Liquidity condition of MSMEs and the relationship between liquidity position and profitability of MSMEs is examined. Data has been collected from 100 randomly selected registered MSMEs in Kamrup district, Assam (India). The study revealed that the liquidity position of 40% MSMEs is moderate and there exits an inverse relationship profitability and liquidity among MSMEs which is not significant at 5% level. Thus, the conclusion can be drawn from the study that liquidity has no significant impact on MSMEs’ profitability. An enterprise should have the ideal level of liquidity. It shouldn't be too little or too much.
Pages: 532-535 | Views: 104 | Downloads: 61
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How to cite this article:
Dr. Gour Gopal Banik, Jugal Kumar Boro. A study on liquidity and profitability of micro, small and medium enterprises (MSMES) in Assam, India. Asian J Manage Commerce 2024;5(1):532-535.
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