The document discusses the challenges faced by micro, small, and medium enterprises (MSMEs) in India. It outlines several key challenges MSMEs encounter, including technological issues, managerial problems, cash flow difficulties, issues with raw materials and products, infrastructure problems, and more. It also provides statistics on the growth of MSMEs in India in terms of numbers and employment over time. Finally, it defines the classification of MSMEs under Indian law based on investment levels.
Strategic alignment of horizontal and vertical pmo goals finalTathagat Varma
Today’s R&D organizations are highly matrixed. A PMO in a typical product team must work with several peers in engineering, QA, product management, usability, marketing and several other functions, neither of who report into her. She must align all these functions to the product roadmap and to the larger overall goals and objectives of her product group.
As the product organizations grow, there is an inevitable need for Strategic PMO to integrate back various functionally independent product groups on common systemic issues and create an interlock to reinforce each of the components. Strategic PMOs in this role have an added level of complexity working with vertical PMOs who don’t have same level of priority for the strategic horizontal initiatives. Often, their goals are at crossroads.
In this paper, we discuss a framework to create a strategic alignment of organization-level strategic PMO goals (“Horizontal Strategic Programs”) and product group-level operational PMO goals (“Vertical Programs”) into seamless team efforts. Finally, we present a case study on strategic horizontal programs at Yahoo! R&D India
A model for aligning software projects requirements with project team members...csandit
The fast-paced, dynamic environment within which information and communication technology
(ICT) projects are run as well as ICT professionals’ constant changing requirements present a
challenge for project managers in terms of aligning projects’ requirements with project team
members’ requirements. This research paper purports that if projects’ requirements are
properly aligned with team members’ requirements, then this will result in a balanced decision
approach. Moreover, such an alignment will result in the realization of employee’s needs as
well as meeting project’s needs. This paper presents a Project’s requirements and project Team
members’ requirements (PrTr) alignment model and argues that a balanced decision which
meets both software project’s requirements and team members’ requirements can be achieved
through the application of the PrTr alignment model.
A MODEL FOR ALIGNING SOFTWARE PROJECTS REQUIREMENTS WITH PROJECT TEAM MEMBERS...cscpconf
The fast-paced, dynamic environment within which information and communication technology (ICT) projects are run as well as ICT professionals’ constant changing requirements present a challenge for project managers in terms of aligning projects’ requirements with project team members’ requirements. This research paper purports that if projects’ requirements are properly aligned with team members requirements, then this will result in a balanced decision approach. Moreover, such an alignment will result in the realization of employee’s needs as well as meeting project’s needs. This paper presents a Project’s requirements and project Team members’ requirements (PrTr) alignment model and argues that a balanced decision which meets both software project’s requirements and team members’ requirements can be achieved through the application of the PrTr alignment model.
Strategic alignment of horizontal and vertical pmo goals finalTathagat Varma
Today’s R&D organizations are highly matrixed. A PMO in a typical product team must work with several peers in engineering, QA, product management, usability, marketing and several other functions, neither of who report into her. She must align all these functions to the product roadmap and to the larger overall goals and objectives of her product group.
As the product organizations grow, there is an inevitable need for Strategic PMO to integrate back various functionally independent product groups on common systemic issues and create an interlock to reinforce each of the components. Strategic PMOs in this role have an added level of complexity working with vertical PMOs who don’t have same level of priority for the strategic horizontal initiatives. Often, their goals are at crossroads.
In this paper, we discuss a framework to create a strategic alignment of organization-level strategic PMO goals (“Horizontal Strategic Programs”) and product group-level operational PMO goals (“Vertical Programs”) into seamless team efforts. Finally, we present a case study on strategic horizontal programs at Yahoo! R&D India
A model for aligning software projects requirements with project team members...csandit
The fast-paced, dynamic environment within which information and communication technology
(ICT) projects are run as well as ICT professionals’ constant changing requirements present a
challenge for project managers in terms of aligning projects’ requirements with project team
members’ requirements. This research paper purports that if projects’ requirements are
properly aligned with team members’ requirements, then this will result in a balanced decision
approach. Moreover, such an alignment will result in the realization of employee’s needs as
well as meeting project’s needs. This paper presents a Project’s requirements and project Team
members’ requirements (PrTr) alignment model and argues that a balanced decision which
meets both software project’s requirements and team members’ requirements can be achieved
through the application of the PrTr alignment model.
A MODEL FOR ALIGNING SOFTWARE PROJECTS REQUIREMENTS WITH PROJECT TEAM MEMBERS...cscpconf
The fast-paced, dynamic environment within which information and communication technology (ICT) projects are run as well as ICT professionals’ constant changing requirements present a challenge for project managers in terms of aligning projects’ requirements with project team members’ requirements. This research paper purports that if projects’ requirements are properly aligned with team members requirements, then this will result in a balanced decision approach. Moreover, such an alignment will result in the realization of employee’s needs as well as meeting project’s needs. This paper presents a Project’s requirements and project Team members’ requirements (PrTr) alignment model and argues that a balanced decision which meets both software project’s requirements and team members’ requirements can be achieved through the application of the PrTr alignment model.
Micro, Small and Medium Enterprises, Key Government Schemes and Initiatives to support MSMEs, Current Financing Landscape for MSMEs, Issues and Challenges for MSMEs
Growth and Future Prospects of MSME in IndiaIJAEMSJORNAL
In recent years, the significance of MSME has been recognized in the world’s countries for its major contribution in various socio-economic objectives such as higher economic growth and employment, output, nurturing entrepreneurship and encouragement and support for exports. MSME play a vital role in the industrial development of any country. The MSME sector is a backbone of Indian economy for its contribution to growth of Indian economy. This sector is very much important for moves towards a faster and inclusive growth of country. The MSME sector can help for achieving the target of Nation Manufacturing Policy that manufacturing should contribute 25% in India’s GDP by 2022. For that purpose, the government of India has taken a good initiative of “Make in India”. This paper is to focus on performance of MSME & growth and opportunities. It is concluded that this sector significantly contributes in employment, exports and manufacturing output.
Difficulties Small Business Face Due to Marekt Conditionsijtsrd
Micro, Small and Medium Enterprise (MSME) sector has emerged as a highly vibrant and dynamic sector of the Indian economy over the last five decades. MSMEs not only play crucial role in providing large employment opportunities at comparatively lower capital cost than large industries but also help in industrialization of rural & backward areas, thereby, reducing regional imbalances, assuring more equitable distribution of national income and wealth. MSMEs are complementary to large industries as ancillary units and this sector contributes enormously to the socio-economic development of the country. The researcher has tried to find out the possible difficulties that small enterprises face in the market. The reasons behind the failure of maximum small enterprises in Indian market. The market policies which effect such businesses and also the steps taken by the government to relief the small market enterprises. Some of the important policies have been discussed in the paper introduced by the government or which already exists. The researcher has tried to give solutions to solve such problems incurred by the SME'. The researcher has tried to find the existing governmental policies which will ease in doing business and also provide suggestions to solve the problems being faced by such business organisations. Arihant Agrawal"Difficulties Small Business Face Due to Marekt Conditions" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-2 | Issue-5 , August 2018, URL: http://www.ijtsrd.com/papers/ijtsrd17022.pdf http://www.ijtsrd.com/management/operations-management/17022/difficulties-small-business-face-due-to-marekt-conditions/arihant-agrawal
Empowering MSMEs through financing and linkagesMisbah Hussain
This reports aims to help the MSME sector, especially in
east and north-eastern parts of the country, better
understand the challenges and devise strategies accordinglyto deal with the odds.
Promoting Responsible Business by BMOs Issue V - Foundation for MSME Clusters...TheBambooLink
We are delighted that this unique Award Programme for “Responsible Indian BMOs” has now successfully entered its fifth year. This year is special, as with the support of the Office of Development Commissioner, Ministry of MSME, we have taken the Award Programme to a new height by organizing “Cluster Conclave and 5th BMO Award: Innovate to Lead”.
An Investigation into the Financial Performance of Micro, Small and Medium En...Dr. Amarjeet Singh
Micro, small and medium enterprises (MSMEs) are an indispensable part of the Indian economy. In terms of Gross Value Added (GVA) and Gross Domestic Product (GDP), MSMEs accounted for about 33% and 31% of India's GVA and GDP, respectively, in the year 2019-20. Unlike large enterprises that are concentrated in the metros, MSMEs are spread across smaller and larger rural as well as urban centres of India. They are also the biggest source of employment, especially in rural India, and contribute to the rural development and industrialisation. MSMEs also act as a great social bridge as smaller enterprises are owned by socially backward classes and women than are larger enterprises. For these reasons and more, the India government has always promoted the growth and development of MSMEs through policy initiatives, technology up gradation, and via other means. Consequently, MSMEs have also grown in multi-folds in the past decades in terms of the number of enterprises in operation and the collective revenue of the sector. Several challenges affect the growth of MSMEs, however. One of these is the limited academic studies into the financial performance of MSMEs, probably due to the unavailability of adequate data. The present research attempts to fill this gap by conducting a financial performance evaluation of 51 sample MSMEs based in the district of Nanded, Maharashtra. The research utilizes Data Envelopment Analysis (DEA) to compare the financial performance of sample MSMEs selectively using the suitable variables identified by Arasu et al. (2021). Findings suggest sharp differences in the financial performance of sample units. Inefficient units are suggested to improve their return on asset, return on capital employed, and net profit margin.
The Indian MSME sector is the backbone of the national economic structure and has unremittingly acted as the bulwark for the Indian economy, providing it resilience to ward off global economic shocks and adversities. With around 48.8 million units throughout the geographical expanse of the country, MSMEs contribute around 7% of the manufacturing GDP and 31% of the GDP from service activities as well as 37% of India s manufacturing output and 40% of the overall exports.
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
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Explore our most comprehensive guide on lookback analysis at SafePaaS, covering access governance and how it can transform modern ERP audits. Browse now!
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
As a business owner in Delaware, staying on top of your tax obligations is paramount, especially with the annual deadline for Delaware Franchise Tax looming on March 1. One such obligation is the annual Delaware Franchise Tax, which serves as a crucial requirement for maintaining your company’s legal standing within the state. While the prospect of handling tax matters may seem daunting, rest assured that the process can be straightforward with the right guidance. In this comprehensive guide, we’ll walk you through the steps of filing your Delaware Franchise Tax and provide insights to help you navigate the process effectively.
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
What is the TDS Return Filing Due Date for FY 2024-25.pdfseoforlegalpillers
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The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
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India Orthopedic Devices Market: Unlocking Growth Secrets, Trends and Develop...Kumar Satyam
According to TechSci Research report, “India Orthopedic Devices Market -Industry Size, Share, Trends, Competition Forecast & Opportunities, 2030”, the India Orthopedic Devices Market stood at USD 1,280.54 Million in 2024 and is anticipated to grow with a CAGR of 7.84% in the forecast period, 2026-2030F. The India Orthopedic Devices Market is being driven by several factors. The most prominent ones include an increase in the elderly population, who are more prone to orthopedic conditions such as osteoporosis and arthritis. Moreover, the rise in sports injuries and road accidents are also contributing to the demand for orthopedic devices. Advances in technology and the introduction of innovative implants and prosthetics have further propelled the market growth. Additionally, government initiatives aimed at improving healthcare infrastructure and the increasing prevalence of lifestyle diseases have led to an upward trend in orthopedic surgeries, thereby fueling the market demand for these devices.
India Orthopedic Devices Market: Unlocking Growth Secrets, Trends and Develop...
LPM3
1.
2. Project Management National Conference 2011 PMI India
Sustaining Challenges In Managing
Micro Small And Medium
Enterprises
Ramakrishna Kavirayani
EMC
2|P a g e
Application of Select Tools of Psychology for Effective Project Management
3. Project Management National Conference 2011 PMI India
Contents
1 Abstract..............................................................................................................................4
2 Introduction........................................................................................................................5
3 References........................................................................................................................13
3|P a g e
Application of Select Tools of Psychology for Effective Project Management
4. 1 Abstract
Micro, small and medium enterprises (MSME) have been the growth engine in
today’s world characterized by low investment, operational flexibility, location
wise mobility, and import substitution. India’s vibrant micro and small enterprise
sector, which thrives on entrepreneurship and innovation, plays an important role
in sustaining the economic growth contributing around 45 percent of the
manufacturing output and 40 percent of the total exports of India in 2009-2010.
Today’s MSMEs which are successful, shape up to become tomorrow’s large
industries. Classification of MSMEs is looked at based on the capital investment
ceilings to start the business. These play a key role in the development of a
country’s economy with their effective, efficient, flexible and innovative
entrepreneurial spirit. In this growth path, numerous challenges are encountered.
The process of economic liberalization and market reforms has further exposed
these enterprises to challenges from both domestic and global competition. The
major challenges confronting the sector are:
• Technological
• Managerial
• Cash Flows
• Raw materials & Products
• Incidence of Sickness
• Infrastructure
• Environmental Competition
• Marketing and Export
• Growth Opportunities for individuals
An attempt is made here to explore the various challenges and ways to
encounter the same. The best practices that could be used are highlighted.
Contribution from MSMEs to the GDP has grown over the past decade. Finally a
mention of the task force report on MSMEs presented to the Hon’ble Prime
Minister of India is touched upon.
Keywords: Challenges, Sustenance, MSME
5. 2 Introduction
Micro, small and medium enterprises (MSMEs) play an important role in
contributing to the overall industrial development of the country. These also
include khadi, village as well as rural enterprises. The MSME sector accounts for
45 per cent of the manufacturing sector and employs 43 million people. Studies
revealed that the awareness levels of Government MSME policies have
increased from 25% in 2008 to 35% in 2009, but still two-thirds of the MSMEs
are not even cognizant about the MSME Development Act. The MSME
Development Act came into effect from 2nd October 2006. The Policy of
Reservation of Products for exclusive manufacture in SSI (now MSMEs) was
initiated in 1967 with the objective of achieving socio-economic development,
through development and promotion of small units all over the country. The
Ministry of MSME implements the National Manufacturing Competitiveness
Programme (NMCP) to enhance the capacity of Indian MSMEs for overcoming
competition globally and sustain challenges due to the entry of multi-nationals in
domestic market. The formidable challenges so generated for them have led to a
novel approach of cluster development for the sector. As a result, private and
public sector institutions, both at the Central and State levels are increasingly
undertaking cluster development initiatives. Clustering and networking has
helped the small and medium enterprises in boosting their competitiveness. India
has over 400 SME clusters and about 2000 artisan clusters. MSMEs have been
the significant contributor to the exchequer. Though this sector has been given a
priority status by both the Central and the State Governments, still the MSMEs
continue to face several problems in their day-to-day operations. These are not
limited to production, marketing of their products, sell output at remunerative
prices, expense for advertising, marketing research, stiff competition from large
firms, inadequate infrastructural facilities and credit access, etc are among the
major problems. The plan outlay for the Ministry of MSME for 2010-11 was Rs.
2550.00 crores. The 4th All India Census of MSMEs was completed during 2010-
2011.
6. Literature review related to the current article:
Milind Kumar Sharma and Rajat Bhagwat [2] analyzed the need for performance
measurement system as a vital decision support tool at the strategic
management level in SMEs in the developing nations. Their study identified
critical issues that are important viz – PMS strategy, competitive priorities,
benefits observed/perceived by effective management of PMS function and
barriers observed in implementing PMS practices that would contribute to the
effective performance measurement function in Indian SMEs. Md. Ariful Islam et
al [3] developed a theoretical framework which covers the risk management of
the issues that SMEs undergo in their operations that detract from their business
performance. Their empirical investigations cover the internal and external
disturbances that have been encountered in their daily operations. Gill Maxwell
et all [4] investigated the incidence and impact of flexible working arrangements
in smaller businesses. Positive impacts of flexible work arrangements in
recruitment and talent retention, quality working relationships for employees,
loyalty and long term engagement are found, coupled with disadvantages of
operational problems and administrative issues. The study proposed that the gap
between the potential for, and current practice in, flexible working arrangements
could be bridged by targeting information and guidance on such arrangements
specifically to the smaller businesses owner-managers. Seema Sharma and
Milind Sharma [5] have examined the relative production efficiency of state-wise
clusters in the registered small-scale sector in India. It was found that in most of
the states operations were carried at decreasing returns to scale which signifies
the scope for further investment and employment generation. Syed et al [6] study
examines the issues, and explains how the business owners of SMEs in
Malaysia strategize their operation to overcome the failure. The outcome
indicates that business success is a result of implementing a mix of business,
operation and management strategies with the possible remedies,
recommendations and future enhancements. Catherine [7] outlines the dynamics
that businesses face during an economic crisis. Leaders play psychological and
emotional roles to optimize morale and productivity during turbulent times.
7. Michael and Robert [8] explored the capabilities to sustain innovations and
business success as companies transform from start-up to mature organizations.
Results indicated the importance of market orientation, knowledge, management
capabilities, social networks to innovation, success and sustainability.
Definition for Micro, Small and Medium Enterprises in India
Micro, small and medium enterprises as per MSMED Act, 2006 are defined
based on their investment in plant and machinery (for manufacturing enterprise)
and on equipment for enterprises providing or rendering services. The present
ceilings on investment for enterprises to be classified as micro, small and
medium enterprises are as follows:
Classification Manufacturing enterprises service enterprises
Micro Rs. 2.5 million / Rs. 25 Rs. 1 million / Rs. 10 lakh
lakh (US$ 50,000) (US$ 20000)
Small Rs.50 million / Rs. 5 crore Rs. 20 million / Rs 2 crore
(US$ 1 million) (US$ 0.4 million)
Medium Rs 100 million / Rs 10 Rs. 50 million / Rs 5 crore
crore (US$ 2 million) (US$ 1 million)
Enterprises in MSME sector in India
35
30
25
# in millions
20
15
10
5
0
2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011
Year
8. Employment in MSME sector in India
80
70
60
# in millions
50
40
30
20
10
0
2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011
Year
Contribution of MSMEs (%)
60.00
50.00
40.00
Percentage
30.00
20.00
10.00
0.00
1999- 2000- 2001- 2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009- 2010-
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Total Industrial Production Gross Domestic Product (GDP)
9. Investment in MSME sector
900.000
800.000
700.000
Rs (1000s Crores)
600.000
500.000
400.000
300.000
200.000
100.000
0.000
2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011
Production - Gross Output from MSME Sector
1200
Value in Rs (1000 Crores)
1000
800
600
400
200
0
2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011
The major challenges confronting the sector are:
• Technological
• Managerial
• Cash Flows
• Raw materials & Products
• Incidence of Sickness
• Infrastructure
• Environmental Competition
10. • Marketing and Export
• Growth Opportunities for individuals
An elaboration on the challenges and ways to overcome them is dealt hereunder.
Technological: Retention of trained and experienced employees is a hurdle for
small enterprises as they cannot bear high salaries and spend much on learning
and development skills for their employees. Recruiting and motivating skilled
personnel – both technical and managerial - is difficult for small organizations.
Expertise in a niche area demands more cost and hence it has been observed
that skilled personnel move to large scale industries. Prime problems that small
businesses encounter in sourcing technology are: obtaining information about
technology, actual procurement of technology, acquiring finance for technology
upgradation. MSMEs need to look out for creativity and innovation in producing
products of high quality with the latest technology available currently. Research
and development focus will enhance patents contribution and higher revenues.
Managerial: Small scale businesses are run predominantly by families which lack
required skills for managing the enterprises efficiently. Lack of work distribution
and advantages of specialized skills are not available. Reluctance to adoption of
modern art of organization and management hinders growth and scalability.
These issues could be limited to a large extent by: management training
programmes, training and consultancy, research and development, implementing
management methodologies for effective owner-employee relationships, etc.
Cash Flows: Finance is vital for any enterprise to meet the fixed and working
capital needs. MSMEs need credit support not only for running the enterprise
and operational requirements but also for diversification,
modernization/upgradation of facilities, capacity expansion, etc. Prime challenge
observed is inadequate access to credit which gives operational leverage for
MSMEs.
Raw Materials & Products: Timely-availability of quality raw materials in an
adequate quantity is one of the main problems faced by MSMEs. They do not get
the benefits of bulk buying. For instance, the handloom industry faces shortage
of yarn. Small scale industries also face shortage of power due to which they are
unable to make full utilization of plant capacity. Majority of them cannot afford to
install their own power generating plants to ensure uninterrupted operations.
Raw Material Assistance Scheme of NSIC aims at helping small scale industries
by way of financing the purchase of raw material (both indigenous & imported).
This gives an opportunity to MSMEs to focus better on manufacturing quality
products. NSIC takes care of all the procedures, documentation & issue of letter
of credit in case of imports.
Incidence of Sickness: Most of the times financial problems (credit availability,
non-timely receipt of payments, funds availability for expansion, etc) lead to
11. closure of MSME units. This could be nullified to a greater extent by proper
planning, devising ways to understand the business strategies, etc.
Infrastructure: Adequate infrastructure facilities prove to be conducive for the
overall development across sectors of the economy. Due to liberalization and
globalization, its relevance for the proper growth of MSMEs cannot be
undermined. State and Central Governments have been taking constructive
steps for the same. Still there exist infrastructural bottlenecks, which restrict their
day-to-day business operations as well as their potential growth prospects.
Transportation facilities, well connected telecommunication channels, adequate
power supply, etc can help the businesses overcome infrastructural problems to
a great extent.
Environmental Competition: MSMEs face stiff competition from large scale
businesses due to the distribution network. Enterprises that have goodwill in the
market or have intellectual property rights/ standardization for their products or
produce large range of products, etc., are more likely to dominate the business
environment. Small and medium scale enterprises mainly deal in one specialized
line of products, have very small production and distribution network, and
generally have no protection for their products. As a result, in spite of having
useful and good quality products or having products similar to those produced by
large scale firms, they are largely not able to create/ hold demand for their
products and tend to lose customers to large scale enterprises owing to cut-
throat competition.
Marketing & Export: MSMEs often have to face difficulties in the marketing and
distribution of their products as most of them do not have their own marketing
network. Selling the output at remunerative prices is a hurdle due to higher
production cost and non-standardized product quality. Spending on advertising,
sales, promotion, marketing research, etc is also limited. This might result in
selling their products at lesser prices due to weak bargaining power and financial
problems/crunch. Stiff competition from large firms is threat as well. Due to the
stiff competition from the products and sales/ marketing strategies of large scale
firm's entrepreneurs, at times, MSMEs find it very difficult to cope with large
businesses in terms of cost, quality, standards, popularity, meeting ever-
changing demands/ preferences of consumers, etc. Since small and medium
scale enterprises are the most significant contributor in the field of India's
exports, they need to be innovative and strategize in devising ways to overcome
the issues observed above. E.g. they need to be aware of all the steps involved
in the process, like, registration of exporters; selection of export market and
buyers; receipt of enquiries, letter of intent, letter of credit, bill of lading, etc;
insurance coverage; obtaining shipping order; certificate of origin; sending
documents to importers; etc.
Individuals Growth: MSMEs to a greater extent operate closely within family
houses. This curtails growth for talented individuals who tread the path of
entrepreneurship when they continue to exist in the smaller businesses. To retain
talent and contain attrition, enterprises need to invest in innovation and creativity
12. uplevelling. IP Patenting is one form to look at. To an extent the various institutes
that offer the Entrepreneurship programmes help kick start the thought process
amongst the younger generation.
The Task Force on Micro, Small and Medium Enterprises setup in August 2009
presented their report to the Hon’ble Prime Minister of India on 30th January,
2010 which dealt with the roadmap for the development and promotion of
MSMEs. Relief and incentives to the MSMEs were recommended post the recent
economic slowdown; institutional changes and detailed programmes that need to
be completed; setting up of legal and regulatory structures to create a good
environment for entrepreneurship, innovation and growth of MSMEs in the
country were elaborated.
The recommendations cover major areas that include:
1. Credit
2. Marketing
3. Labor, rehabilitation and exit policy,
4. Infrastructure,
5. Technology and skill development
6. Taxation
13. A copy of the “Report on Task Force on MSMEs’ being presented to Hon’ble
Prime Minister on 30th January, 2010 by Shri T.K.A. Nair, Principal Secretary to
Prime Minister. Also seen in the picture are Shri Dinsha Patel, Hon’ble MOS (I/C)
MSME, and Shri Dinesh Rai, Secretary (MSME).
3 References
1. MSME Annual Report 2010-2011, published by GOI, Ministry of Micro, Small
and Medium Enterprises.
2. Performance measurement system: case studies from SMEs in India Milind
Kumar Sharma, Rajat Bhagwat - Int. J. of Productivity and Quality
Management 2007 - Vol. 2, No.4 pp. 475 – 509.
3. Managing operational risks in Small- and Medium-sized Enterprises (SMEs)
engaged in manufacturing – an integrated approach Md. Ariful Islam, J.D.
Tedford, E. Haemmerle - Int. J. of Technology, Policy and Management 2008
- Vol. 8, No.4 pp. 420 – 441.
4. The incidence and impact of flexible working arrangements in smaller
businesses Gill Maxwell, Laura Rankine, Sheena Bell, Anna MacVicar -
Employee Relations, Vol. 29 Issue: 2, pp.138 – 161.
5. Seema Sharma, Milind Sharma, "Analyzing the technical and scale efficiency
of small industries in India: state-wise cluster study", Measuring Business
Excellence, Vol. 14 Issue: 2, pp.54 - 65.
6. Business challenges and strategies for development of Small- and Medium-
sized Enterprises (SMEs) in Malaysia, Syed Zamberi Ahmad, Nazatul Shima
Abdul Rani, Siti Kasmah Mohd Kassim, International Journal of Business
Competition and Growth 2010 - Vol. 1, No.2 pp. 177 – 197.
7. Sandler, Catherine, The psychological role of the leader in turbulent times,
Strategic HR Review, Volume 8, Number 3, 2009 , pp. 30-35(6).
14. 8. Lewrick, Michael; Raeside, Robert, Transformation and change process in
innovation models: start-up and mature companies. International Journal of
Business Innovation and Research, Volume 4, Number 6, 3 October 2010,
pp. 515-534(20).
9. Outcome Budget 2010-2011 Ministry of MSME, Government of India.