Information Asymmetry and High Transaction Costs: Challenges for MSMEs In Securing Financial Support

MSMEs are an untapped sector of the Indian economy with the potential to foster growth bybenefiting the affluent industry and the country's middle class.

There are multiple schemes run by Indian governments to cater to this agenda, but they are still unable to actualize the true potential of the MSME sector. This research paper explores the historical context and contemporary challenges faced by Micro, Small, and Medium Enterprises in India, which struggle to keep pace with other sectors of the economy. Despite their potential to drive economic growth and enhance middle-class livelihoods through increased productivity and employment generation, MSMEs’ potential remained underutilized and constrained by various obstacles.

Recommended Citation

Anu Singh (2025) "Information Asymmetry and High Transaction Costs: Challenges for MSMEs In Securing Financial Support ", GNLU Journal of Law And Economics : Volume VII 2024, Issue II
Available at: https://gnlu.ac.in/GJLE/Publications/Information Asymmetry and High Transaction Costs: Challenges for MSMEs In Securing Financial Support