This study investigates the impact of the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) on the economic resurgence of micro and small enterprises (MSEs) in Karnataka. By integrating quantitative analysis of credit data and qualitative case studies, this paper evaluates how CGTMSE has facilitated credit access, bolstered entrepreneurship, and contributed to regional economic development. The findings reveal that CGTMSE significantly enhances credit availability, supports business growth, and fosters economic revitalization in Karnataka.