Economic Growth from the Bottom Up: The Contribution of MSMEs and Rural Entrepreneurship - A Study of Belagavi District

Abstract

Micro, Small, and Medium Enterprises (MSMEs) and rural entrepreneurs play a vital role in driving inclusive and sustainable growth at the grassroots level. Their activities not only create jobs and generate income but also build social and economic resilience within local communities. This paper explores how MSMEs contribute to bottom-up economic growth in Belagavi District, Karnataka. Using primary data collected from 120 respondents, the study applies the Integrated Economic Development Model (IEDM), which combines social and financial dimensions of growth. Statistical analysis was performed through SPSS 26.0 using Cronbach’s Alpha, Pearson’s correlation, and independent samples t-tests. The findings indicate excellent instrument reliability (α = 0.93) and show that enterprise size and years in operation do not significantly influence their contribution to regional growth. The findings demonstrate how MSMEs work together to support social development, entrepreneurship, and employment. To maintain local economic development, policy proposals emphasise digital inclusion, financial availability, and bolstering entrepreneurial ecosystems.