DOES ACCESS TO STOCK MARKET IMPACT THE FINANCIAL PERFORMANCE OF SMALL ENTERPRISES? EVIDENCE FROM SMES LISTED IN BOMBAY STOCK EXCHANGE

SMEsare the backbone of any country asthey grow at the grass root level which increase the earnings of the country and reduce unemployment problem too.It is one of the dynamic and most vibrant sectors of Indian economy. Over the last few decades, SMEs have played a crucial role in mobilising the local resources effectively. However, among the many difficulties, access to finance is widely recognized as one of the main hurdles in the growth and development path of the SMEs. After 2012, SMEs are allowed to float their shares through stock exchanges i.e., NSE EMERGE and BSE SME. The present paperattempts to study the impact of stock market accessibility by SMEs on various parameters of financial performance.In this paper, we tried to study whether getting listed on the stock exchange have improved the performance of selected SMEs or not. For this purpose, we considered the SME units who have issued IPOs during the year 2015 and the economic performance of the selected enterprises are measured with the help of ROA, ROE, NPM, CR, DE and EPS. We found that getting listed on the stock exchange did not improve the performance of selected SMEs.