Real Challenges and Problems of MSMEs in Haryana: A Factor Analysis Approach

Chandna Jain

Research Scholar

Department of Economics

Baba Mastnath University, Rohtak, Haryana

Dr. Ram Kishan

Professor

Department of Economics

Baba Mastnath University, Rohtak, Haryana

Abstract-

This study investigates the real challenges and problems faced by Micro, Small, and Medium Enterprises (MSMEs) in Haryana using a descriptive, survey-based approach. A sample of 600 MSME employees across diverse districts was surveyed to capture perceptions of operational, financial, structural, and policy-related barriers. The data were analyzed using Exploratory Factor Analysis (EFA), which extracted five key factors: Institutional and Structural Challenges, Operational and Competitiveness Challenges, Growth and Innovation Challenges, Financial and Resource Constraints, and Policy and Advisory Constraints. Together, these factors explained a significant portion of the variance, providing a comprehensive framework for understanding the multidimensional difficulties MSMEs encounter. The findings highlight systemic bottlenecks, resource limitations, and capability gaps that hinder MSME sustainability and competitiveness in Haryana.

Keywords: Micro, Small, and Medium Enterprises , Haryana State, Exploratory Factor Analysis, Operational Challenges etc.