Finance is the life blood of micro and small enterprises. Micro and small enterprises get finance from both long term sources and short term sources. There are various factors affecting procurement of finance from long term sources and short term sources by the enterprises. The present study has assessed the relative importance of factors affecting procurement of finance from long term sources by micro and small enterprises in the Barak Valley of Assam. The study has also assessed the relative importance of factors affecting procurement of finance from long term sources by manufacturing enterprises and service enterprises in the Valley. The enterprises which are registered with District Industries and Commerce Centers of the three districts of the Valley namely Cachar, Karimganj and Hailakandi districts as on 31-3-2012 and which are functioning have been studied in the present study. ‘Time period’ is found to be the most important factor affecting procurement of finance from long term sources by micro and small enterprises in the Barak Valley while ‘form of organisation’ is found to be the least important factor affecting procurement of finance from long term sources by micro and small enterprises in the Valley.

KEYWORDS: Time Period, Form of Organisation, Knowledge, Cost of Finance, Micro Enterprises and Small Enterprises.