Impact of Pradhan Mantri Mudra Yojana on the Growth and Sustainability of Small Enterprises: A Study of Gautam Buddh Nagar District, Uttar Pradesh

Abstract

The Pradhan Mantri Mudra Yojana (PMMY) has emerged as an important government initiative for improving access to institutional credit among micro and small enterprises that traditionally face difficulties in obtaining formal finance. Launched in 2015, the scheme provides collateral-free credit through the Shishu, Kishor, Tarun, and Tarun Plus categories for eligible income-generating activities in manufacturing, trading, services, and activities allied to agriculture. By March 2026, PMMY had disbursed more than ₹40.07 lakh crore through over 57 crore loan accounts, demonstrating its extensive reach across the Indian economy. The present study investigates the impact of PMMY on the growth and sustainability of small enterprises in Gautam Buddh Nagar district of Uttar Pradesh. The study examines access to finance, business expansion, employment generation, working-capital availability, asset creation, revenue growth, financial inclusion, and enterprise sustainability. A qualitative and analytical methodology based on secondary literature, official government data, MSME reports, and district-level economic information is adopted. Gautam Buddh Nagar represents an important study area because Noida and Greater Noida constitute major industrial and entrepreneurial centres, including a substantial ready-made garment cluster and diverse manufacturing and service activities. The findings indicate that PMMY has contributed to improving formal credit access and entrepreneurial opportunities, particularly for first-time entrepreneurs and small businesses. However, challenges relating to awareness, documentation, repayment capacity, financial literacy, market competition, technology adoption, and access to larger growth capital continue to affect long-term enterprise sustainability. The study concludes that strengthening financial literacy, post-loan handholding, digital financial services, market linkages, and enterprise development support can increase the long-term effectiveness of PMMY in Gautam Buddh Nagar.