Impact of MNCs on MSMEs

Journal of Business & Economics  •  Volume 3, Issue 2  •  October 21, 2026

Abstract

This study investigated the economic and managerial impact of multinational corporation entry on micro, small and medium enterprises in Vadodara, Gujarat. City-level evidence on this relationship is limited, so a questionnaire survey of 40 enterprise owners and managers was conducted, supported by secondary data from government reports, academic journals and industry publications. Revenue declined for 42.5% of respondents, while 35% reported growth and 22.5% reported no change. The pattern differed by sector: retail had the highest decline rate (3 of 6 firms, 50%) and food and beverage the highest growth rate (3 of 6, 50%), although these subgroups were small. Employment was largely stable, with 85% of enterprises maintaining or increasing their workforce. Improved customer service was the most common response to competition (47.5%), followed by quality improvement (42.5%). The findings suggest that multinational entry produced a varied rather than uniformly negative effect, and that local firms competed mainly through service and quality. The sample was small and cross-sectional, so the results are descriptive and do not establish causation. Impact of MNCs on MSMEs in Vado…

Keywords

MSMEs MNCs Vadodara Foreign direct investment Competition
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Citation

15 Citations
Hamza, M. (2026). Impact of MNCs on MSMEs. Global Youth Science Journal, 3(2). https://doi.org/10.5281/zenodo.23536123
Hamza, Mohammed. "Impact of MNCs on MSMEs." Global Youth Science Journal, vol. 3, no. 2, 2026. https://doi.org/10.5281/zenodo.23536123.
Hamza, Mohammed. "Impact of MNCs on MSMEs." Global Youth Science Journal 3, no. 2 (2026). https://doi.org/10.5281/zenodo.23536123.
Hamza, M. (2026) 'Impact of MNCs on MSMEs', Global Youth Science Journal, 3(2). Available at: https://doi.org/10.5281/zenodo.23536123.
@article{GYSJ2026Hamza,
  title={Impact of MNCs on MSMEs},
  author={Mohammed Hamza},
  journal={Global Youth Science Journal},
  volume={3},
  number={2},
  year={2026},
  url={https://doi.org/10.5281/zenodo.23536123}
}
TY  - JOUR
TI  - Impact of MNCs on MSMEs
JO  - Global Youth Science Journal
VL  - 3
IS  - 2
PY  - 2026
UR  - https://doi.org/10.5281/zenodo.23536123
AU  - Mohammed Hamza
ER  -

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