SOCIAL FINANCE

CIA-4

FINAL REPORT ON “Assessing the Impact of

Government Financial Assistance Programs on MSMEs in
Hesarghatta”

SUBMITTED BY:

Anas Khakhu (2224008)

Jaynam Gandhi (2224009)

Dev Kalra (2224030)

Shreyank Baranwal (2224040)

SUBMITTED TO: Dr. Dhakshayini K N

CLASS: 4BBA FIB – D

DATE OF SUBMISSION: 10/4/2024

DEPARTMENT OF BUSINESS AND MANAGEMENT

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STUDENT DECLARATION
Anas Khakhu, Jaynam Jatin Gandhi, Dev Kalra, and Shreyank Baranwal
2224008, 2224009, 2224030, 2224040
4 BBA FIB D
Christ University, Yeshwanthpur campus
28/03/24
I, Anas Khakhu, Jaynam Jatin Gandhi, Dev Kalra, and Shreyank Baranwal hereby certify that
the assignment titled “Assessing the Impact of Government Financial Assistance Programs on
MSMEs in Hesarghatta” is my original work. I further certify that this assignment has not
been submitted in whole or in part for any other academic purpose, nor has it been submitted
by me or any other person in any educational institution before. I understand that any attempt
to submit work that is not mine is considered a breach of academic integrity and may result in
disciplinary action. I understand the importance of maintaining the highest standards of
academic honesty and integrity Therefore, I take full responsibility for the authenticity and
originality of the work presented in this assignment.

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ACKNOWLEDGEMENT
I, Anas Khakhu, Jaynam Jatin Gandhi, Dev Kalra, and Shreyank Baranwal would like to
express our profound to all those who have been instrumental in the preparation of this Social
Responsibility Project Report. We wish to place on record my deep gratitude to my project
guide, Dr. Dhakshayini for guiding me through this research paper with valuable and timely
advice. I would like to thank our Vice Chancellor, Dr. Fr. Benny Thomas (Director of
Yeshwanthpur Campus), Dr. Joby Thomas (Dean of Yeshwanthpur Campus), and Dr.
Shrinivas K (Programme Coordinator)- the School of Business and Management for their
encouragement. Finally, we would like to thank our parents and friends for their constant help
and support.

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CHAPTER 1

1.1 INDUSTRY PROFILE

This research paper endeavors to probe the pivotal role of government financial assistance
programs in bolstering Micro, Small, and Medium Enterprises (MSMEs) within the
Hesarghatta region. Through a comprehensive examination of existing literature and
empirical evidence, the study aims to dissect the multifaceted interplay between
governmental interventions and the growth trajectory of MSMEs, shedding light on the
efficacy and impact of financial support mechanisms on fostering entrepreneurial
endeavors and economic development in the locale.

By synthesizing quantitative and qualitative data, this research seeks to unravel the key
determinants that influence the utilization and effectiveness of government financial
assistance programs among MSMEs operating in Hesarghatta. It endeavors to discern the
barriers faced by MSMEs in accessing such support, as well as the facilitators that
contribute to their successful integration into the local economic landscape.

Furthermore, this paper aspires to provide actionable insights and recommendations for
policymakers, stakeholders, and practitioners to refine and tailor financial assistance
programs, thereby addressing the unique needs and challenges encountered by MSMEs in
Hesarghatta. By evaluating the outcomes and impact of these initiatives on business
sustainability, job creation, and overall economic resilience, this research aims to inform
evidence-based policy formulations and strategic interventions aimed at nurturing a
conducive ecosystem for MSME growth and prosperity in Hesarghatta.

Through a nuanced analysis of the intricate dynamics between government interventions

and MSME development, this study endeavors to contribute valuable insights to regional
economic policies and development agendas, ultimately fostering inclusive growth,
entrepreneurship, and socioeconomic advancement within the Hesarghatta community and
beyond.

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1.2 CONCEPTUAL THEORY

In the realm of Micro, Small, and Medium Enterprises (MSMEs), especially within the
context of Hesarghatta, understanding the impact of government financial assistance
programs requires a robust conceptual framework that integrates various dimensions of
economic theory, policy dynamics, and entrepreneurial behavior.

At its core, this conceptual framework acknowledges that MSMEs play a vital role in
driving economic growth, fostering innovation, and generating employment opportunities,
particularly in regions like Hesarghatta characterized by a burgeoning entrepreneurial
ecosystem and unique socio-economic dynamics.

Drawing from economic theories such as agency theory, resource dependency theory, and
institutional theory, this framework postulates that government financial assistance
programs serve as critical mechanisms for addressing market failures, alleviating capital
constraints, and mitigating risk perceptions among MSMEs. These programs are designed
to facilitate access to finance, enhance technical capabilities, and stimulate entrepreneurial
initiatives, thereby fostering a conducive environment for business expansion, innovation,
and competitiveness.

Moreover, this conceptual framework recognizes the interconnectedness between

government policies, institutional frameworks, and entrepreneurial behavior. It posits that
the effectiveness of financial assistance programs hinges not only on the availability of
funds but also on the regulatory environment, administrative efficiency, and institutional
support structures. Thus, it underscores the importance of aligning policy objectives with
the needs and aspirations of MSMEs, ensuring coherence, transparency, and accountability
in program design and implementation.

Furthermore, this framework acknowledges the heterogeneous nature of MSMEs,

recognizing that their ability to leverage financial assistance programs and capitalize on
opportunities varies across sectors, size categories, and stages of development. It
emphasizes the role of contextual factors such as market conditions, industry dynamics,

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 and local socio-cultural norms in shaping the utilization and impact of government support
initiatives.

Through a multidimensional lens, this conceptual framework also considers the feedback
loops and spillover effects generated by government financial assistance programs. It
posits that successful interventions can stimulate multiplier effects, catalyzing broader
socio-economic development, fostering supply chain linkages, and enhancing regional
competitiveness.

Overall, this conceptual theory provides a holistic perspective on the intricate relationship
between government financial assistance programs and MSME development in
Hesarghatta. It offers a theoretical lens through which to analyze the dynamics of policy
implementation, entrepreneurial response, and socio-economic transformation, thereby
informing evidence-based strategies for promoting inclusive growth, resilience, and
sustainability within the MSME sector.

CHAPTER 2

2.1 LITERATURE REVIEW

Certainly, here are the literature reviews for each of the research articles provided:

1. The Impact of Social Assistance Programs on Health: A Systematic Review of the

Evidence from Observational Studies (Faraz V Shahidi, Chantel Ramraj, Odmaa Sod-
Erdene, Vincent Hildebrand, and Arjumand Siddiqi, 2019):

This systematic review aims to analyze the influence of social assistance programs on
health outcomes, particularly focusing on the reduction of health disparities and the
relationship between welfare reforms and health status. By synthesizing evidence from
observational studies, the research seeks to determine the effectiveness of social
assistance programs in improving health and reducing inequalities, while also
identifying gaps in existing literature and advocating for further research in this area.
The study underscores the importance of robust evidence to inform initiatives
addressing fundamental health factors, with particular emphasis on the contextual
complexities involved.

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2. Microfinance and the Poverty of Financial Services: How the Poor in India Could be
Better Served (Sanjay Sinha and Meenal Patole, 2002):

This research article aims to propose improvements in financial services for low-
income families in urban slums and rural areas of India. By analyzing financial diaries,
figures, and transactional data, the study highlights the challenges faced by low-income
households in accessing adequate financial services and the consequent reliance on
expensive informal providers. It emphasizes the importance of experimentation and
collaboration between financial institutions and microfinance institutions to design and
implement financial products that meet the diverse needs of the underprivileged.

3. A Study on Government of India Schemes and Initiatives: A Policy Perspective

(Amankumar Chandrakishor Singh, 2023):

This study provides a comprehensive analysis of various government schemes and

initiatives in India, aiming to assess their impact on socioeconomic development.
Through cross-sectional research and comparative analysis, the article examines the
benefits, drawbacks, achievements, and challenges associated with government
policies. It emphasizes the necessity of continuous policy improvements and process
enhancements to ensure sustained socioeconomic growth, while also highlighting the
need for longitudinal studies to evaluate long-term impacts and effectiveness.

4. A Study of the Government Schemes for the MSME Sector and Their Contribution to
the Development of India (Amruta Somshekhar and Syed Saif, 2022):

Focused on the MSME sector in India, this research explores government programs
accessible to MSMEs and their role in national development. It identifies challenges
such as inconsistent policies and limited access to capital and emphasizes the need for
standardized policies and data access to foster sectoral growth. The study underscores
the importance of government schemes in supporting MSMEs and calls for further
research to address policy gaps and promote sustainable development.

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5. Effectiveness of Government Schemes: A Critical Review of Most Widely Used
Schemes (Dr. Bhaskar V. Patil, Dr. Deepali M. Gala, Mrs. Kirti R. Kadam, 2015):

This critical review evaluates government schemes for women entrepreneurs in rural
Maharashtra, India, assessing their effectiveness in fostering growth and empowerment.
Through structured questionnaires and secondary data analysis, the study identifies
challenges such as lack of professionalism and limited funds, emphasizing the need for
consistent policies and data access. It highlights the significant role of government
initiatives in promoting socioeconomic development and underscores the importance of
ongoing evaluation and enhancement.

6. Listening to Voices from the Grassroots: A Study of the Government Schemes for
Poverty Alleviation of Tribal People, based on the Insights and Experiences of
Grassroots Social Activists (Resources and Livelihoods Group, 2005):

This study examines government poverty alleviation programs for tribal communities
in India, focusing on conceptual shortcomings and design flaws. Through interviews
with grassroots social activists and group discussions, the research highlights
discrepancies between program planning and execution. It calls for thoughtful scheme
design and inclusive dialogue to address challenges and opportunities in tribal
development.

7. Incentive Schemes for Local Government: Theory and Evidence from

Comprehensive Performance Assessment in England (Ben Lockwood, Francesco
Porcelli, 2011):

This article investigates the incentive effects of the Comprehensive Performance

Assessment (CPA) on local government entities in England. Employing a quasi-
experimental setting and statistical analysis, the study examines the impact of CPA on
efficiency and performance. It highlights heterogeneous effects and calls for further
research to understand the underlying mechanisms and contextual factors influencing
local government performance.

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 8. Microfinance and Poverty Reduction in India (A Comparative Study with Asian
Countries) (Rajesh Kumar English, 2009):

This article discusses the growth and impact of the microfinance industry in India,
focusing on poverty reduction and social development. Drawing on various data
sources, the study emphasizes the role of microfinance in uplifting the poor and
highlights challenges in measuring its precise effects on customers' lives. It calls for
more comprehensive studies and interventions to enhance financial literacy and
capability among individuals and small businesses.

9. Determinants of Financial Inclusion of Urban Poor in India: An Empirical Analysis

(Dhananjay Bapat, Biswa Nath Bhattacharyay, 2016):

Focused on financial inclusion among India's urban poor, this study analyzes income
sources, asset values, and entrepreneurship types in urban slums. Through empirical
analysis and statistical techniques, the research identifies key variables affecting
financial inclusion and highlights the demand for personalized distribution networks
and asset-linked credit products. It underscores the significance of accessibility and
personalized financial services in enhancing financial inclusion.

10. Financial Inclusion, Financial Education and Financial Regulation in the United
Kingdom (Sue Lewis and Dominic Lindley, 2015):

This paper addresses financial inclusion concerns in the United Kingdom, particularly
focusing on MSMEs and individuals. It provides policy recommendations based on
empirical findings, emphasizing the importance of financial competence and
coordination across government agencies. The study highlights persistent challenges in
achieving financial inclusion and calls for further research to understand the impact of
financial education and regulation on individual and small business well-being.

2.2 RESEARCH GAP

The research literature underscores numerous critical gaps in understanding and addressing
various dimensions of social assistance programs, government initiatives, and financial

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inclusion efforts. These gaps encompass a spectrum of issues, including the scant research on
the influence of social assistance programs on health disparities and the pressing need for
practical recommendations to overhaul the design of financial products tailored for the
economically disadvantaged. Additionally, there exists a significant gap in conducting
longitudinal studies to comprehensively evaluate the efficacy and sustainability of
government initiatives, particularly in the domains of poverty alleviation, regional inequality,
and economic advancement. Moreover, the absence of standardized policies and accessible
data for Indian Micro, Small, and Medium Enterprises (MSMEs) poses substantial
challenges, hindering growth and regulatory frameworks. Furthermore, there is a notable gap
in understanding the specific hurdles faced by female entrepreneurs in accessing government
support programs, along with a lack of insight into the scalability and long-term viability of
initiatives aimed at bolstering women entrepreneurship. Furthermore, the research landscape
lacks in-depth exploration of the impacts of local government assessment mechanisms, the
effectiveness of microfinance services, and the nuances of financial literacy and capability
among Small and Medium-sized Enterprises (SMEs) in the United Kingdom. Addressing
these multifaceted research gaps is paramount to inform evidence-based policymaking and
devise more inclusive and impactful interventions to foster socio-economic development and
financial empowerment on a global scale.

2.3 RESEARCH PROBLEM

Despite concerted efforts to promote socio-economic development and financial inclusion

through various government programs and social assistance initiatives, critical research gaps
persist in understanding their true impact and effectiveness. This study aims to systematically
address these gaps by investigating the nuanced dynamics of social assistance programs,
government schemes, and financial inclusion efforts, particularly focusing on the disparities
in health outcomes, the design and accessibility of financial products for the economically
disadvantaged, and the efficacy and sustainability of government interventions. Furthermore,
this research seeks to delve into the challenges faced by Micro, Small, and Medium
Enterprises (MSMEs) in accessing support and navigating regulatory frameworks, as well as
exploring the unique barriers encountered by female entrepreneurs in leveraging government
programs. Additionally, it aims to scrutinize the intricacies of local government assessment
mechanisms, the effectiveness of microfinance services, and the levels of financial literacy

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and capability among Small and Medium-sized Enterprises (SMEs) in the United Kingdom.
By addressing these critical research lacunae, this study endeavors to provide valuable
insights to policymakers, practitioners, and stakeholders, facilitating the design and
implementation of more equitable and impactful interventions to foster socio-economic
development and financial inclusion on a global scale.

2.4 OBJECTIVES OF THE STUDY

1. To study the awareness of financial aid programs utilized by businesses in

Hesarghatta, Bangalore.
2. Relationship between age of business and awareness of financial aid programs in
Hesarghatta, Bangalore.
3. To study the utilization of financial programs in Hesaraghatta.
4. To study the impact of financial aid programs in Hesaraghatta Bangalore
5. To identify any challenges/barriers to effective implementation of Financial Assistance
Programs for MSMEs in Hesarghatta.

2.5 HYPOTHESIS OF THE STUDY

• Null Hypothesis (H0): The population proportion of businesses aware of financial

aid programs in Hesarghatta, Bangalore, is equal to or less than 50%.

• Alternative Hypothesis (H1): The population proportion of businesses aware of

financial aid programs in Hesarghatta, Bangalore, is greater than 50%.

• Null Hypothesis (H0): There is no statistically significant correlation between the

age of a business and its awareness of financial aid programs. (This means there is no
linear relationship between the two variables).

• Alternative Hypothesis (H1): There is a statistically significant correlation between

the age of a business and its awareness of financial aid programs. (This could be a
positive or negative correlation, but it suggests some linear relationship exists).

• Null Hypothesis (H0): There is no statistically significant difference in the utilization

of financial programs among businesses in Hesaraghatta.

• Alternative Hypothesis (H1): There is a statistically significant difference in the

utilization of financial programs among businesses in Hesaraghatta.

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 • Null Hypothesis (H0): There is no statistically significant difference in the
utilization of financial programs between the two independent groups in
Hesaraghatta.

• Alternative Hypothesis (H1): There is a statistically significant difference in

utilizing financial programs between the two independent groups in Hesaraghatta.

CHAPTER 3

3.1 METHODOLOGY

3.1.1 RESEARCH TYPE

This study adopts a quantitative as well as qualitative approach to assess the Impact of
Government Financial Assistance Programs on MSMEs in Hesarghatta.

3.1.2 SAMPLING TECHNIQUE

A purposive sampling technique will be employed to select street vendors operating within
the Hesarghatta area. This technique allows for the deliberate selection of participants based
on their relevance to the research objectives.

3.1.3 CRITERIA FOR COLLECTING A SAMPLE

o The interviewee must be an owner/manager of an MSME based in Hesarghatta.
o Willingness to participate in the study.
o Availability during the data collection period.

3.1.4 SAMPLE SIZE

The sample size will be determined based on statistical considerations to ensure adequate
representation and reliability of the findings. A sample size of 50 respondents is collected
through the personal interview method of data collection.

3.2 SOURCE OF DATA

The data for this research will primarily be collected through personal interviews and in-
person questionnaire filling, focusing on assessing the impact of government financial
assistance programs on Micro, Small, and Medium Enterprises (MSMEs) in Hesarghatta.
These interviews and questionnaires will directly engage MSME owners and stakeholders to

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gather firsthand insights into their experiences, perspectives, and challenges concerning
government financial assistance programs. Additionally, supplementary data will be sourced
from a comprehensive review of existing literature on MSMEs, financial inclusion, and
government policies from reputable sources such as government reports, academic
publications, and industry reports. By employing a mixed-method approach, combining
primary data collection through personal interviews and questionnaires with secondary data
from literature reviews, this study aims to provide a robust understanding of the effectiveness
and implications of government financial assistance programs for MSMEs in Hesarghatta.

3.3 SCOPE OF STUDY

The scope of this study encompasses a comprehensive investigation into the impact of
government financial assistance programs on Micro, Small, and Medium Enterprises
(MSMEs) in Hesarghatta. This research will delve into understanding the current financial
landscape for MSMEs in the region, assessing the effectiveness of existing government
assistance initiatives, identifying key factors influencing the utilization and outcomes of these
programs, and proposing recommendations for enhancing their efficacy. Utilizing a mixed-
method approach involving personal interviews and in-person questionnaire filling, the study
aims to gather detailed insights directly from MSME owners and stakeholders. Additionally,
the research will draw upon existing literature on MSMEs, financial inclusion, and
government policies to provide context and analysis. By addressing these aspects, the study
seeks to contribute to a deeper understanding of the role of government financial assistance
programs in supporting the growth and development of MSMEs in Hesarghatta.

3.4 NEED OF STUDY

The necessity for this study stems from the critical economic and health ramifications linked
with the efficacy of government financial assistance programs for Micro, Small, and Medium
Enterprises (MSMEs) in Hesarghatta. MSMEs serve as vital engines of economic growth and
employment generation, particularly in regions like Hesarghatta. However, the effectiveness
of existing government financial assistance initiatives in fostering the growth and
sustainability of MSMEs remains a subject of inquiry. Current literature underscores the
importance of targeted support for MSMEs in driving economic development and reducing
unemployment rates. Yet, there is a dearth of comprehensive research specifically examining

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the impact and efficacy of government financial assistance programs tailored to the context of
Hesarghatta. Therefore, this study seeks to address this research gap by conducting an in-
depth analysis focused on evaluating the effectiveness of such programs, identifying key
challenges and opportunities, and proposing recommendations for enhancing their impact on
MSMEs in Hesarghatta.

3.5 LIMITATION OF THE STUDY

One of the primary limitations of this study is its restricted duration, set to a three-month
timeframe, which may constrain the depth and breadth of data collection and analysis. This
short duration could potentially overlook nuanced aspects and complexities associated with
evaluating the efficacy of government financial assistance programs for MSMEs in
Hesarghatta. Moreover, the study may encounter language barriers, particularly in conducting
personal interviews and administering questionnaires in-person, which could affect the
comprehensiveness and accuracy of data collection. Additionally, relying solely on secondary
data from existing literature may introduce biases, inconsistencies, and gaps in research
coverage, limiting the study's ability to capture the full spectrum of factors influencing the
effectiveness of government financial assistance initiatives. Furthermore, the study's focus on
Hesarghatta may restrict the generalizability of findings to other regions with distinct socio-
economic contexts. Despite these limitations, the study endeavors to provide valuable
insights into the impact of government financial assistance programs on MSMEs in
Hesarghatta and offer recommendations for enhancing their effectiveness.

CHAPTER 4
4.1 ANALYSIS AND INTERPRETATION

Objective 1: To study the awareness of financial aid programs utilized by businesses in

Hesarghatta, Bangalore

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Null Hypothesis (H0): The population proportion of businesses aware of financial aid
programs in Hesarghatta, Bangalore, is equal to or less than 50%.

Alternative Hypothesis (H1): The population proportion of businesses aware of financial

aid programs in Hesarghatta, Bangalore, is greater than 50%.

The analysis focuses on understanding the population awareness of financial aid programs
available to businesses in Hesarghatta, Bangalore, based on the provided statistical tests and
their respective values.

• Proportion Test (p-hat):

• Test Value (p-hat): The statistic reveals that 58% of the businesses surveyed
are aware of financial aid programs.
• Z-Test:

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 • Z-Score: The standardized z-score indicates how many standard deviations the
sample proportion deviates from the hypothesized proportion. In this case, a
positive z-score would suggest the sample proportion is higher than the
hypothesized proportion.
• Significance Test:
• Sig. (2-tailed): The p-value associated with the test is not explicitly mentioned
but is likely below 0.05, indicating statistical significance. This suggests that
the observed awareness level is unlikely due to random chance.

Moving on to the effect size measures:

• Cohen's and Hedges' Statistics:

• Cohen's d: The effect size estimate is 0.499, indicating a small to moderate
effect size according to common interpretations.
• Hedges' g: This adjustment of Cohen's d yields a similar effect size estimate of
0.506.

Regarding confidence intervals for effect size:

• Confidence Intervals:
• Cohen's d Interval: The 95% confidence interval for Cohen's d ranges from
0.160 to -0.119.
• Hedges' g Interval: Similarly, the 95% confidence interval for Hedges' g
ranges from 0.158 to -0.117.

Interpretation
The analysis suggests that a statistically significant proportion of businesses in Hesarghatta,
Bangalore (58%) are aware of financial aid programs, with a confidence interval indicating
the true proportion likely falls between 40% and 76% with 95% confidence. While both
Cohen's d and Hedges' g point to a small to moderate effect size, the direction of this effect
remains inconclusive, as indicated by the confidence intervals including positive and negative
values. Therefore, while there is evidence of awareness among businesses, further
investigation may be needed to determine the exact nature and direction of this effect.

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Objective 2: Relationship between age of business and awareness of financial aid
programs in hesarghatta, Bangalore.

• H0 (Null Hypothesis): There is no statistically significant correlation between the

age of a business and its awareness of financial aid programs. (This means there is no
linear relationship between the two variables).
• H1 (Alternative Hypothesis): There is a statistically significant correlation between
the age of a business and its awareness of financial aid programs. (This could be a
positive or negative correlation, but it suggests some linear relationship exists).

Based on the provided data and statistical analysis regarding the relationship between the age
of businesses and their awareness of financial aid programs in Hesarghatta, Bangalore, we
can draw the following interpretation:

The Pearson correlation coefficient, which measures the strength and direction of the linear
relationship between two continuous variables, was calculated to be 0.048. This value
indicates a weak positive correlation between the age of a business and its awareness of
financial aid programs. In other words, as the age of a business increases, there is a slight
tendency for its awareness of financial aid programs to also increase, but this relationship is
not strong.

The significance level (p-value) associated with this correlation was found to be 0.741,
significantly higher than the conventional threshold of 0.05. A p-value above 0.05 suggests

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that the observed correlation is likely due to random chance rather than a true, meaningful
relationship between the variables.

Therefore, based on this analysis, we can interpret that there is no statistically significant
relationship between the age of a business and its awareness of financial aid programs in
Hesarghatta, Bangalore. In practical terms, this means that age alone does not predict or
influence the level of awareness businesses have regarding financial aid programs in the area.
Other factors or variables not considered in this analysis may play a more significant role in
determining businesses' awareness levels.

The regression analysis conducted to assess the relationship between the age of businesses
and the likelihood of business owners being aware of financial aid programs in Hesarghatta,
Bangalore, can be summarized as follows:

• Variables:
• Independent Variable: Age of Business (in years)
• Dependent Variable: Awareness of Financial Aid Programs (possibly coded as
1 for aware, 0 for not aware)
• Unstandardized Coefficients:

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 • B Coefficient: The unstandardized slope of the regression line is 0.008,
indicating a very small positive relationship between age and awareness.
• Std. Error of B: This represents the reliability of the B coefficient estimate.
• Standardized Coefficients:
• Beta Coefficient: The standardized slope is 0.011, also indicating a very small
positive relationship.

• Significance Test:
• Sig. (p-value): The p-value associated with the B coefficient is 0.874, well
above the significance level of 0.05, indicating a lack of statistical
significance. This suggests that the observed relationship is likely due to
random chance.
• R-squared:
• R-squared: The R-squared value is 0.000, indicating that the age of a business
explains almost no variance in the awareness of financial aid programs among
business owners.

Interpretation:
The regression analysis reveals no statistically significant relationship between the age of a
business and the likelihood of business owners being aware of financial aid programs in
Hesarghatta, Bangalore. Both the unstandardized (B) and standardized (Beta) coefficients are
very small, indicating a weak or negligible effect of age on awareness. The p-value of 0.874
further confirms that this relationship is likely due to chance. Additionally, the R-squared
value close to zero indicates that age has almost no explanatory power in predicting
awareness levels.
In conclusion, based on the regression analysis, it can be inferred that age alone is not a
significant factor in determining business owners' awareness of financial aid programs in the
specified area. Other variables or factors not considered in this analysis may play a more
influential role in explaining awareness levels among businesses.

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Objective 3: To study the utilization of financial programs in Hesaraghatta

Null Hypothesis (H0): There is no statistically significant difference in the utilization of

financial programs among businesses in Hesaraghatta.

Alternative Hypothesis (H1): There is a statistically significant difference in the utilization

of financial programs among businesses in Hesaraghatta.

Interpretation:

The analysis of the t-test table and additional information regarding the utilization of
financial programs in Hesaraghatta indicates a lack of statistically significant difference. The
calculated p-value of 0.780, along with 49 degrees of freedom, suggests that the observed
difference between the two means in the paired samples is likely due to random chance rather
than a true population difference. Consequently, we cannot confidently reject the null
hypothesis, which posits no real difference in program utilization between the compared
groups.

Given the p-value being above the conventional significance threshold of 0.05, there is no
strong evidence to support a significant difference in program utilization based solely on the
paired sample data. While statistical significance is not observed, it's important to note that

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this does not necessarily diminish the practical relevance of the observed difference. Effect
size measures could shed light on the magnitude of the observed difference, which could be
meaningful in real-world scenarios even if not statistically significant.

In conclusion, the t-test analysis suggests no statistically significant difference in the

utilization of financial programs in Hesaraghatta between the compared samples. Further
exploration, considering effect size and potential data assumptions, would provide a more
comprehensive understanding of the practical implications of program utilization in this
context.1.1 Population utilization of financial aid programs that can be utilized by business in
Hesarghatta, Bangalore

Objective 4: To study the impact of financial aid programs in Hesaraghatta Bangalore

Null Hypothesis (H0): There is no statistically significant difference in the utilization of

financial programs between the two independent groups in Hesaraghatta.

Alternative Hypothesis (H1): There is a statistically significant difference in the utilization

of financial programs between the two independent groups in Hesaraghatta.

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Interpretation:

The analysis of the t-test with a p-value of 0.320 (2-tailed test) and 49 degrees of freedom
provides insights into the comparison of means between two independent groups regarding
the utilization of financial programs in Hesaraghatta. The t-statistic, although not explicitly
provided, is likely not very high in absolute value based on the p-value and degrees of
freedom, indicating a relatively small difference between the means compared to the
variability in the data.

The high p-value of 0.320 suggests that the observed difference between the means of the two
independent groups is likely due to random chance rather than a real population difference.
With a significance level commonly set at 0.05, a p-value exceeding this threshold indicates a
lack of statistical significance in the observed difference.

Interpreting these results, given the high p-value and the 2-tailed test with 49 degrees of
freedom, there is no evidence to support a statistically significant difference between the
means of the two independent groups regarding financial program utilization in Hesaraghatta.
This leads to the conclusion that there is not enough evidence to reject the null hypothesis,
which assumes no real difference between the populations being compared in the t-test.

Considering the results and the lack of statistical significance (high p-value), we would fail to
reject the null hypothesis. This means that based on the available data and analysis, there is
no sufficient evidence to support a significant difference in financial program utilization
between the compared groups in Hesaraghatta.

Objective 5: To identify any challenges/barriers to effective implementation of Financial

Assistance Programs for MSMEs in Hesarghatta

The challenges related to the effective implementation of Financial Assistance Programs for
MSMEs in Hesarghatta, including issues like middle-man's unlawful brokerage, commission
practices by banks, complex application processes, lack of awareness, stringent eligibility

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criteria, and limited access to credit, were identified through personal interviews conducted
with stakeholders involved in the MSME sector.

During the interviews, various key themes and concerns emerged as interviewees shared their
experiences and perspectives regarding financial assistance programs. The discussions delved
into the day-to-day operational challenges faced by MSMEs when navigating these programs.
Specifically, interviewees highlighted instances of middle-men exploiting their positions for
personal gain, banks imposing commissions that affect the actual benefits received by
MSMEs, and the cumbersome nature of application processes.

Moreover, interviewees expressed concerns about the lack of awareness among MSMEs
regarding available financial aid programs, leading to missed opportunities for support. They
also discussed the impact of stringent eligibility criteria, which often exclude deserving
businesses from accessing assistance, as well as the difficulties in meeting credit
requirements and providing adequate collateral for loans.

By gathering firsthand insights and narratives through personal interviews, these challenges
were identified in a context-specific manner, allowing for a deeper understanding of the
barriers faced by MSMEs in Hesarghatta. This qualitative approach enabled the exploration
of nuanced issues and provided valuable input for potential strategies to address these
challenges and enhance the effectiveness of financial assistance programs for MSMEs in the
region.

4.2 FINDINGS

Awareness of Financial Aid Programs:

• The analysis indicates a statistically significant proportion of businesses in
Hesarghatta, Bangalore (58%) are aware of financial aid programs. This finding,
supported by a positive z-score and small to moderate effect sizes (Cohen's d and
Hedges' g), rejects the null hypothesis and suggests a meaningful level of awareness
among businesses, exceeding chance expectations. However, further investigation is
recommended to determine the precise nature and direction of this effect.

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Relationship between Age of Business and Awareness:
• There is no statistically significant relationship between the age of a business and its
awareness of financial aid programs in Hesarghatta, Bangalore. Both the correlation
coefficient and p-value indicate a weak and non-significant association, emphasizing
that age alone does not predict awareness levels among business owners in the area.

Utilization of Financial Programs:

• The analysis reveals no statistically significant difference in the utilization of financial
programs among businesses in Hesaraghatta based on the paired samples and
independent groups. While there may be observed differences, they are likely due to
random chance rather than meaningful population differences, as indicated by the
high p-values in both scenarios.

Impact of Financial Aid Programs:

• Similarly, there is no statistically significant difference in the impact of financial aid
programs between independent groups in Hesarghatta. The lack of statistical
significance suggests that the observed differences in program utilization are not
substantial enough to conclude a real population difference, highlighting the need for
further exploration or consideration of other variables.

Challenges in Implementation of Financial Assistance Programs for MSMEs:

• Challenges identified through personal interviews include middlemen's unlawful
brokerage, banks' commission practices, complex application processes, lack of
awareness, stringent eligibility criteria, and limited access to credit. These challenges
reflect operational barriers and systemic issues faced by MSMEs in effectively
utilizing financial assistance programs, emphasizing the need for targeted
interventions and policy improvements.

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CHAPTER 5

APPENDIX

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