Challenges Faced by Micro,Small and Medium Enterprises in Food Processing Industries: Evidence from Kamrup Metro District,Assam

Abstract

This study investigates the challenges faced by Micro, Small and Medium Enterprises (MSMEs) in the food processing sector in the Kamrup Metro district of Assam, India. Understanding these challenges is essential for entrepreneurs, investors and policymakers to formulate effective strategies for the sector’s sustainable growth. Data were collected from 280 registered MSMEs between July 2023 and December 2024 using stratified random sampling, with strata defined according to the Government of India’s official MSME classification, and a structured questionnaire comprising both dichotomous and Likert-scale items. A quantitative, descriptive research design was adopted. Instrument reliability was assessed using Cronbach’s alpha and the Kuder–Richardson Formula 20 (KR-20), while normality testing indicated non-normal distribution, leading to the use of non-parametric statistical tools. Descriptive analysis revealed that micro food processing enterprises experience relatively fewer challenges in raw materials, finance, technology and human resources due to their small operational scale and reliance on self-financing. However, gaps remain in branding, labelling and adherence to quality standards, such as the Food Safety and Standards Authority of India (FSSAI), suggesting the need for greater emphasis on market-oriented practices to improve competitiveness. Small enterprises reported more severe challenges across domains, including credit constraints, high technology costs and labour shortages. The lone medium enterprise highlighted issues related to procurement delays and technology, though generalisation is limited. Chi-square tests showed a statistically significant relationship between enterprise classification and most problem variables, except raw material quality. The findings emphasise the need for classification-specific policy interventions to enhance the resilience and competitiveness of food processing MSMEs in the region.