Business Environment Challenges And Their Impact On Business Performance: A Study Of Msmes In J&K

Abstract

Environmental challenges have been a significant concern for entrepreneurs due to their impact on assignment implementation, organization, performance, and a region's or country's overall socio-economic progress. There is a limited understanding of how entrepreneurs manage their operations under a similar climate structure with varying levels of uncertainty. Building upon existing literature, this study conceptualizes environmental challenges, including both macro and micro challenges, and investigates how these vulnerabilities affect the business performance of MSMEs.. Using convenience sampling, a questionnaire was used to collect primary data from 475 owners and managers of MSMEs registered in Industrial Estates in Jammu and Srinagar. The study findings indicated a
significant influence of both macro and micro challenges on the MSMEs' market direction and business performance. The study suggests that MSMEs should be motivated to create a competitive environment by expanding their markets, introducing new products, and meeting the needs of customer preferences. Overall, the findings highlight that both macro and micro challenges have a combined effect on the growth and sustainability of MSMEs. This research significantly contributes to the development of advanced literature and guides managers and researchers to encourage creativity in their affiliations.