LEGAL FRAMEWORKS AND REGULATORY CHALLENGES IN FOSTERING SUSTAINABLE GROWTH FOR MICRO, SMALL, AND MEDIUM ENTERPRISES (MSMES): A MANAGEMENT PERSPECTIVE

Abstract

From a managerial standpoint, this research investigates the regulatory obstacles that affect the sustainable expansion of Micro, Small, and Medium Enterprises (MSMEs). SME development was significantly impeded by regulatory barriers, including complex registration processes, high compliance costs, and limited access to finance, as determined by a mixed-methods approach involving interviews and surveys with 150 legal and compliance heads of SMEs. Moreover, environmental regulations and ambiguous regulatory requirements present obstacles for SMEs, albeit to a lesser degree. The results emphasize the necessity for policymakers to optimize regulatory processes, augment transparency, and facilitate financial resource accessibility in order to bolster the expansion of small and medium-sized enterprises (SMEs). By efficiently tackling these regulatory obstacles, policymakers have the ability to establish a more favourable atmosphere for small and medium-sized enterprises (SMEs) to flourish, thus making a positive contribution to both sustainable growth and economic advancement.