Financial Distress in Micro Small & Medium Enterprises: Special Reference to Indian Tour & Travel Companies

In India Tourism related MSMEs are liable to get the facilities like friendly banking services, easy finances, wide coverage of insurance, erosion of financial intermediaries, etc. This will help the tourism related MSMEs to flourish and prosper in the country. As of now, there are a number of facilities provided to new MSMEs but still there is a scope to facilitate the existing MSMEs in the country, like providing them with appropriate credit facilities, tax holidays, etc. so that they can directly contribute to the economic development of the country. This present study will evaluate the finance and credit related issues of MSMEs, especially in case of the tourism. This study is based on primary data and the researcher has used ANOVA test to verify the hypothesis.


Introduction :
There are a number of companies that are working at different levels and many people who have some or the other kind of skills and are able to establish a business of their own but they were either overpowered by the big companies in the same domain or the intermediaries take most of the profit from them. In the beginning of 21 st  year. It has emerged as a new sector that is able to employ less skilled and unskilled labor and provide them with regular employment. Still the potential of MSME in the country is in the stage of infancy and is expected to grow by 37% in the next 10 years, i.e. 2030. It is not so that the previous industrial policies have not considered these type of establishments but the stature was limited to only Micro and Small enterprise. MSME Ministry Overview (2013), in the present scenario there are 40 million such establishments in the country and more that 11 million people were engaged in one or the other employment till the year 2013 and now more than 150 million people are employed in this sector. Then on the other hand, out of these 150 million people more than 60% are engaged in agriculture and related enterprises. Some Related Roles are as follows:

Role in Regional development
Most of the MSME in India are in the process of using locally available resources and by this way many of the local vendors and suppliers get an opportunity of business and in turn this process also give a boost to the overall development of the region.

Export Orientation
MSMEs are able to bring a lot of foreign exchange to India and contribute to the overall capital of the country. The decorum of free economy has given all the liberties to MSMEs, that they can expand their markets to international fronts.

New Business Avenues
Today the MSMEs are doing business in a new style as they use to registered for new business lines in the form to innovative products and services. The products and services rose at this level use to boost the morale of entrepreneurs and the employees that are working along.  The objective this study is to evaluate the finance related problems of MSMES in the country with special reference to tourism sector. This study will also suggest ways and means to deal with the emerging issues.

Research Methodology
The secondary data is imperative for the formation of research objectives and hypothesis, in this present study secondary data is used in the same manner and rest of the progress is based on primary data. The universe of the study is all the MSMEs registered as tourism and travel operators in India and the focus is Madhya Pradesh. The researcher has considered 20 such tourism related MSMEs and contacted them personally by using a detailed questionnaire. The researcher has tried to contact all the tourism related MSMEs in the state but some of them are either not willing to involve in the study or are not available at the moment.

Sources of Data
-Most of the studies based on primary data are based on the pillars of secondary data, in this present study as well secondary data is used to frame to objectives and understand the application of working capital in MSME.

Results of ANOVA (One Way) Test
On the basis of Incorporation F Sign

Interpretation
The researcher has considered four demographic variable related to selected MSMEs and tested them against some of the independent variables related to financial components, these variables are as follows: scenario is not favorable for new entrants, it is not so that the market is saturated but then again entry cost is high and in order to remain in the market one has to keep the costs low and meet the credit related requirements.
Then on the basis of turnover and years of incorporation, it can be seen that the level of variation is not high so it can be said that market conditions are favorable for the respondents who operating in the market for more than 5 years, as per the credit agencies this much time period is sufficient for the evaluation of credit worthiness and even they receive certain benefits from the side of government regulating agencies.

Result
On the basis of above discussion and analysis it can be said that the tourism and travel related MSMEs are facing finance and credit related problems and the respective reasons behind these problems are not only external but some of the issues of internal as well.

Conclusion
In the present scenario, MSMEs are considered as the growth engines of Indian economy and the respective government agencies are taking all the precautions to appraise the growth of MSMEs in the country. The regulatory and functional framework of MSMEs is very user friendly and the respective agencies are more than interested to invite private capital in this concern. As far as