A Study on the Role of Commercial Law in Protecting Small and Medium Enterprises (SMEs) in India

S. Johnsy1 and N. Maheswari2*
1Ph.D. Research Scholar, Department of Commerce, St. Joseph’s College (Autonomous), Bharathidasan University, Tiruchirappalli, Tamil Nadu, India.
2Assistant Professor & Head, Department of Commerce (CA), St. Joseph’s College (Autonomous), Bharathidasan University, Tiruchirappalli, Tamil Nadu, India.
*Corresponding Author E-mail: maheswari_cc2@mail.sjctni.edu
Keywords: Commercial Law; Small and Medium Enterprises (SMEs); Contract Enforcement; Legal Protection
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Abstract

Small and Medium Enterprises (SMEs) are widely recognized as the backbone of the Indian economy, contributing significantly to employment, GDP, and export earnings. However, SMEs face persistent legal and regulatory challenges that impede their growth and sustainability. This paper explores the role of commercial law in protecting the interests of SMEs in India. It examines key legal frameworks, assesses their effectiveness, and highlights areas requiring reform. Drawing upon recent studies and legal reviews, the analysis underscores the critical function of commercial law in enabling equitable market participation, reducing litigation burdens, and fostering a predictable business environment. The findings suggest that while legislative measures such as the Insolvency and Bankruptcy Code (IBC), micro, small and medium enterprises facilitation councils, and contract enforcement mechanisms offer protection, issues pertaining to implementation and awareness remain barriers. Policy recommendations are offered to strengthen the protective capacity of commercial law for SMEs.

Citation

Johnsy, S., & Maheswari, N. (2026). A Study on the Role of Commercial Law in Protecting Small and Medium Enterprises (SMEs) in India. Mercovite, 1(1), 75–85.

License

© 2026 The Author(s). Published by Dr. BGR Publications .

The authors retain copyright of this article. This is an open access article distributed under the terms of the Creative Commons Attribution 4.0 International License (CC BY 4.0) , which permits unrestricted use, distribution, and reproduction in any medium, provided the original author(s) and source are credited.

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