Growth and Performance of Micro, Small and Medium Enterprises in India: A Case study of Bihar

The MSMEs sector plays a significant role in the economy of India in terms of creation self-employment, new startup innovation ideas, entrepreneurial skill, exports, Industrial production and managerial skill. The present study deals with thegrowth and performance of Micro, Small and Medium Enterprise in the economy of Bihar. The study is based on the secondary data related to growth and performance of MSME’s of State of Bihar, India. We have calculated the Compound annual growth rate (CAGR), percentage growth and graphical representation methods to analyze the performance MSME’s. The result of the CAGR method indicates that the number of MSME’s units in Bihar has increased during the study period but the yearly percentage growth rate has decreased continuously in the coming years while employment has achieved negative growth rate for the same period. The investment in MSME’s units in Bihar has increased. Thus, it can be concluded that the rate of employment in the MSME’s are not increasing as per the number of MSME’s units in Bihar accordingly.