Article Details
  • Published Online:
    April  2025
  • Product Name:
    The IUP Journal of Corporate Governance
  • Product Type:
    Article
  • Product Code:
    IJCG060425
  • DOI:
    10.71329/IUPJCG/2025.24.2.93-107
  • Author Name:
    Swarnima Tiwari, Ruchi Shukla and Vemireddy Sneha
  • Availability:
    YES
  • Subject/Domain:
    Management
  • Download Format:
    PDF
  • Pages:
    93-107
Volume 24, Issue 2, April 2025
Impact of Corporate Governance Measures on MSME Growth and Sustainability in Andhra Pradesh
Abstract

The study investigates the relationship between the growth of micro, small and medium enterprises (MSMEs), job creation and investment expansion in Andhra Pradesh. MSMEs form the backbone of innovation and employment opportunities, and the mainstay of industrial and economic development. In India, MSMEs fill regional economic gaps, promote comprehensive development, and have evolved into active industries. This study extracts information from the manufacturing and service sectors from 2018 to 2023 to investigate the relationship using correlation regression techniques. A descriptive research design was adopted using secondary data from Andhra Pradesh Industrial Infrastructure Corporation, Ltd. (APIIC), Mangalagiri, and MSME Annual Reports 2023-2024. The findings show that Andhra Pradesh’s improved corporate governance measures for MSMEs boosting competitiveness and long-term growth in the sector. However, to sustain this growth, the Andhra Pradesh government has to encourage innovation, ease regulations, and enhance market access and fintech.

Introduction

Micro, small and medium enterprises (MSMEs) play an important role in driving global economic growth and development. They account for a significant portion of employment generation, industrial output, and exports. MSMEs help close the economic gap in both developed and developing countries by encouraging local entrepreneurship and industrialization.