A STUDY ON THE PATTERN OF FUNDING OF URBAN UNORGANIZED ENTERPRISES IN BENGALURU

Abstract

Unorganized enterprises are owned by individuals or households and it is involved in the production and sale of products and services. Unorganized enterprises are considered one of the major businesses that contribute to the economy indirectly through employment generation and manufacturing one-time consumable product and also contribute to gross domestic products. The problems faced by unorganized enterprises such a insufficient financial resources, arrangement of collateral securities, identifying the creditors, high interest rate and no proper document. Unorganized enterprises some time they generate capital through personal saving, friends and relatives, and also they borrow from money lenders pawn brokers and unregistered finance companies, because they provide required capital but the rate of interest is high. Because of this reason this paper is going to examine the pattern of funding followed by urban unorganized enterprises in funding their business. Descriptive method is used to collect the data. Primary data is collected in the form of a questionnaire, while secondary data is collected through articles etc., Statistical tools like Annova are used to interpret the data. The probable outcome of the study is unorganized enterprises majority of them are basically using they small saving and approaching the private finance agencies for the remaining capital. The paper is an attempt to identifying the pattern followed by this unorganized enterprise to establish their enterprises and showing an inside to the problems faced by their in arranging a funds.