A Financial Application Of Game Theory Perspective To Indian Msmes: An ‘A Priori Evidenced Study

Abstract

If the supply chain had an arch-enemy, it could be termed “lack of financing”. This study looks into the steep challenges addressed by growing India’s Micro, Small and Medium Enterprises (MSME’s) in securing finance, focusing on the supply chain of these business and the actions taken by the Government of India to assist MSME’s to overcome these challenges. The segment has contributed towards countries economy with 6.11% of the manufacturing GDP, 24.63% of the service undertakings GDP as well as 33.4% of manufacturing output. Given the meteorically rise in employment generation by providing jobs to approximately 120 million persons and contribute 45% of the aggregate exports from India and constantly maintaining a growth rate of over 10%, the study seeks to disclose the impact of finance and other macro-economic variables on MSMEs using the application of Shapley values for an Information Communication Technology structure of inputs modelled as dependent variables. This study focuses on the primary constructs and the related suitability of the recognized mathematical model to primary dependent clusters of variables, and not to iterate or computational methodology. It is suggested that the MSME sector should be prioritized and more mathematical and methodical research should be conducted in other areas such as the Political, Economic, Social and Technological aspects of the MSME sector.