Volume VI Special Issue III March 2026

Name of Author : Prof. Chaugule Sharif Mahemud

Title of the paper : The Evolving Role of MSMEs in Economic Growth and Employment Generation

Abstract: Purpose This study aims to examine the evolving role of Micro, Small, and Medium Enterprises MSMEs in promoting economic growth and employment generation across developed and developing economies, with particular emphasis on emerging economies such as India. Methodology The study adopts a systematic review approach, synthesizing peer-reviewed journal articles published between 2016 and 2025. Both theoretical frameworks and empirical findings are analysed to assess the macroeconomic contributions of MSMEs and the factors influencing their performance. Findings The review reveals that MSMEs contribute substantially to GDP growth, employment creation, export expansion, and regional economic development. MSMEs also act as key drivers of innovation and labour absorption. However, persistent challenges related to access to finance, technological adoption, and regulatory compliance constrain their growth potential. Implications The findings underscore the need for integrated policy frameworks that enhance financial access, technological upgrading, and institutional support for MSMEs. Originality This study provides a consolidated and updated synthesis of MSME research over the last decade, offering comprehensive insights into their evolving economic role.

Keywords : Micro, Small, and Medium Enterprises (MSMEs), Economic Growth, Employment Generation, Inclusive Development, Emerging Economies

DOI :

Page Number : 19-25