Micro, small and medium enterprises (MSMEs) play a crucial role in the Indian economy. They contribute 30% of India's GDP and around 45% of manufacturing output, employing over 11 crore people. However, MSMEs face several challenges including lack of access to adequate and timely credit due to insufficient collateral, outdated technology, infrastructure issues, and marketing difficulties due to limited resources and competition from large firms. The government has implemented various policies to address these problems and strengthen MSMEs, which are vital to employment, production and exports in India.
Growth of Micro, Small and Medium Enterprises in Manipurinventionjournals
Economic development and industrial development is considered as synonym and entrepreneurs play a major role in industrial development. Micro, Small and Medium Enterprises (MSMEs) extend to the necessary support and compliment to the beneficial effects of industrialization. Entrepreneurship is an important segment of economic growth and micro, small and medium enterprises play a key role in the industrialization of a state. It will also leads to economic development creating vast employment opportunities, redistribution of economic power and income, raising the standard of living for the people and also leads to reduction of regional imbalances, disparities in income, wealth and consumption etc. Manipur has got many areas of strength and opportunities that can raise the state into a developed state with the help of entrepreneurship and micro, small and medium enterprises are an important segment of the economy contributing substantially in the form of production, employment and exports. Numbers of registered industrial units fluctuates each year and this paper attempt to study the level of growth of these enterprises in the state. This paper also attempts to highlight the strength and weaknesses with the overview growth of micro, small and medium enterprises in Manipur.
The Prospects and Problems of MSMEs sector in India an Analytical studyinventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
1. The document discusses the Micro, Small and Medium Enterprises (MSME) sector in India, including its definition, role, performance, government policies, and problems.
2. It notes that MSMEs contribute significantly to India's GDP, exports, manufacturing output, and employment. However, they also face problems like access to finance, technology, and markets.
3. The government has implemented various policies and programs to promote the MSME sector through improved access to credit, infrastructure, and skills training. However, challenges remain around access to new technologies and markets for MSMEs.
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
This document discusses Micro, Small and Medium Enterprises (MSMEs) in India and the Micro, Small and Medium Enterprises Development (MSMED) Act of 2006. It notes that MSMEs make up over 90% of enterprises worldwide, provide significant employment in India, and contribute around 6.11% to manufacturing GDP and 24.63% to services GDP. The MSMED Act defines micro, small, and medium enterprises based on their investment in plant and machinery or equipment. It aims to support the development of MSMEs and enhance their competitiveness through policies and coverage.
The document discusses Micro, Small, and Medium Enterprises (MSMEs) in India. It defines MSMEs and notes they are an important sector for India's economy, generating employment and contributing to development. The National Board for MSMEs oversees their promotion and enhancement. The government plays a key role in MSME development through various schemes and programs. Major schemes support innovation, skills training, and access to credit. Statutory bodies like the National Institute for MSMEs provide support through research, training, and technology centers.
The document discusses Micro, Small and Medium Enterprises (MSMEs) in India. It notes that MSMEs play a crucial role in the Indian economy by providing employment, promoting industrialization in rural areas, and contributing to socioeconomic development. MSMEs account for a significant portion of India's manufacturing output, exports, and employment. The Micro, Small and Medium Enterprises Development Act of 2006 aims to facilitate the promotion and development of MSMEs in India. MSMEs are classified based on investment levels, and registration provides various benefits.
Role of msme in indian economic developmentKushal Kumar
This document discusses the role of micro, small, and medium enterprises (MSMEs) in India's economic development. Some key points:
1) MSMEs are a major source of employment in India, providing millions of jobs and playing an important role in reducing poverty.
2) They account for about 45% of manufacturing output and 40% of exports in India. MSMEs employ over 60 million people across more than 26 million units.
3) The number of MSMEs, production, employment, exports, and investments have all steadily increased over the past few decades, demonstrating their significant contributions to India's economic growth.
Growth of Micro, Small and Medium Enterprises in Manipurinventionjournals
Economic development and industrial development is considered as synonym and entrepreneurs play a major role in industrial development. Micro, Small and Medium Enterprises (MSMEs) extend to the necessary support and compliment to the beneficial effects of industrialization. Entrepreneurship is an important segment of economic growth and micro, small and medium enterprises play a key role in the industrialization of a state. It will also leads to economic development creating vast employment opportunities, redistribution of economic power and income, raising the standard of living for the people and also leads to reduction of regional imbalances, disparities in income, wealth and consumption etc. Manipur has got many areas of strength and opportunities that can raise the state into a developed state with the help of entrepreneurship and micro, small and medium enterprises are an important segment of the economy contributing substantially in the form of production, employment and exports. Numbers of registered industrial units fluctuates each year and this paper attempt to study the level of growth of these enterprises in the state. This paper also attempts to highlight the strength and weaknesses with the overview growth of micro, small and medium enterprises in Manipur.
The Prospects and Problems of MSMEs sector in India an Analytical studyinventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
1. The document discusses the Micro, Small and Medium Enterprises (MSME) sector in India, including its definition, role, performance, government policies, and problems.
2. It notes that MSMEs contribute significantly to India's GDP, exports, manufacturing output, and employment. However, they also face problems like access to finance, technology, and markets.
3. The government has implemented various policies and programs to promote the MSME sector through improved access to credit, infrastructure, and skills training. However, challenges remain around access to new technologies and markets for MSMEs.
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
This document discusses Micro, Small and Medium Enterprises (MSMEs) in India and the Micro, Small and Medium Enterprises Development (MSMED) Act of 2006. It notes that MSMEs make up over 90% of enterprises worldwide, provide significant employment in India, and contribute around 6.11% to manufacturing GDP and 24.63% to services GDP. The MSMED Act defines micro, small, and medium enterprises based on their investment in plant and machinery or equipment. It aims to support the development of MSMEs and enhance their competitiveness through policies and coverage.
The document discusses Micro, Small, and Medium Enterprises (MSMEs) in India. It defines MSMEs and notes they are an important sector for India's economy, generating employment and contributing to development. The National Board for MSMEs oversees their promotion and enhancement. The government plays a key role in MSME development through various schemes and programs. Major schemes support innovation, skills training, and access to credit. Statutory bodies like the National Institute for MSMEs provide support through research, training, and technology centers.
The document discusses Micro, Small and Medium Enterprises (MSMEs) in India. It notes that MSMEs play a crucial role in the Indian economy by providing employment, promoting industrialization in rural areas, and contributing to socioeconomic development. MSMEs account for a significant portion of India's manufacturing output, exports, and employment. The Micro, Small and Medium Enterprises Development Act of 2006 aims to facilitate the promotion and development of MSMEs in India. MSMEs are classified based on investment levels, and registration provides various benefits.
Role of msme in indian economic developmentKushal Kumar
This document discusses the role of micro, small, and medium enterprises (MSMEs) in India's economic development. Some key points:
1) MSMEs are a major source of employment in India, providing millions of jobs and playing an important role in reducing poverty.
2) They account for about 45% of manufacturing output and 40% of exports in India. MSMEs employ over 60 million people across more than 26 million units.
3) The number of MSMEs, production, employment, exports, and investments have all steadily increased over the past few decades, demonstrating their significant contributions to India's economic growth.
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.
Micro, Small and Medium Enterprises, Key Government Schemes and Initiatives to support MSMEs, Current Financing Landscape for MSMEs, Issues and Challenges for MSMEs
Micro, small and medium enterprises (MSMEs) are an important part of the Indian economy, contributing significantly to manufacturing output, exports, and employment. The MSMED Act of 2006 defines MSMEs based on investment levels in plant/machinery for manufacturing or services equipment. MSMEs play a key role in the Indian economy by generating large-scale employment, especially in rural areas, sustaining economic growth and increasing exports, and promoting inclusive growth by providing livelihoods. However, MSMEs face challenges related to access to finance, technology, skills, and markets. The government has introduced various initiatives to improve the competitiveness, access to credit, and overall business environment for MSMEs in India.
This document discusses challenges faced by small and medium enterprises (SMEs) in India in adopting enterprise resource planning (ERP) systems. SMEs are an important part of the Indian economy, contributing about 17% to GDP. However, adoption of IT and ERP systems among SMEs has been unsatisfactory. The document outlines issues that Indian SMEs face in ERP implementation such as lack of skills, resources, and infrastructure. It also discusses challenges SMEs face in areas like financing, skills, production capacity, and accessing global markets. ERP systems could help increase SME efficiency and productivity if implemented successfully despite these challenges.
The document discusses Small and Medium Enterprises (SMEs) in India. It provides definitions of SMEs according to the European Union and United States. It outlines the history of the Ministry of Micro, Small and Medium Enterprises in India. It also describes the classification of SMEs according to investment size and different types of SMEs in India including their roles and challenges.
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.
Growth and Future Prospects of MSME in IndiaIJAEMSJORNAL
This document summarizes a research paper on the growth and future prospects of micro, small, and medium enterprises (MSMEs) in India. Some key points:
1) MSMEs play a vital role in the Indian economy, contributing about 45% of manufacturing output, 40% of exports, and creating employment for around 70 million people.
2) Over the past decades, the number of MSMEs, employment, investment, and output have grown significantly at compound annual growth rates of 11-18%.
3) However, MSMEs face challenges such as lack of access to finance, low productivity, and technology issues that have hindered faster growth.
4) The Indian government has
MSMEs role in driving the make in india initiativeSeilan Anbu
The document discusses the important role that Micro, Small, and Medium Enterprises (MSMEs) play in driving India's "Make in India" initiative, contributing approximately 45% of manufacturing output, 40% of exports, and employing over 36 million people. MSMEs promote balanced regional development, generate most non-farm jobs, and contribute to sustainable development. The government supports MSMEs through various programs and policies to strengthen the sector and help realize the growth opportunities it presents.
An Overview of MSME Sector in India with Special Reference to the State of Ut...ijtsrd
MSMEs, considered as "Engines of Growth" are crucial for the economy of developing countries like India due to its potential of creating vast employment opportunities. This Sector has caught the attention of policy makers as it is labour intensive and has the potential of reducing the problem of regional imbalances, ensure financial independence of rural people and assist in sustainable development. The Micro, Small and Medium Enterprises in India is being largely viewed as vital to the economic growth of the country in the 21st century. The present paper will focus on existing scenario and trends of MSME in India. This paper studies the current status of MSME sector in India, its performance, various initiatives taken by the government to accelerate the growth of this sector, as well as the problems faced by the MSMEs in Indian economy. Additionally, this paper dedicates one section to the MSMEs sector in the state of Uttarakhand. The State of Uttarakhand is facing the dire problem of intense migration of people from the hilly terrain particularly due to lack of employment opportunities in the rural areas of Uttarakhand and Uttarakhand badly needs sustainable and inclusive industrial growth of all sub regions of the state. Hence, this paper also analyses the status of MSMEs in the state of Uttarakhand and outlines the problems faced and also recommends the measures that should be taken to promote this sector. The study is a review which was conducted with the help of secondary data retrieved from MSME Annual Reports, other government reports, newspapers and research papers. Simranjeet Kaur Virk | Pinnacci Negi "An Overview of MSME Sector in India with Special Reference to the State of Uttarakhand" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-3 | Issue-2 , February 2019, URL: https://www.ijtsrd.com/papers/ijtsrd21520.pdf
Paper URL: https://www.ijtsrd.com/management/public-sector-management/21520/an-overview-of-msme-sector-in-india-with-special-reference-to-the-state-of-uttarakhand/simranjeet-kaur-virk
This document provides an overview of the Ministry of Micro, Small and Medium Enterprises in India. It discusses the background and mandate of the ministry, which is to promote and support the development of MSMEs in India. It outlines the organizational structure of the ministry and its divisions. It also describes the various statutory bodies and organizations that operate under the ministry, including Khadi and Village Industries Commission, Technology Centers, MSME Development Institutes, Coir Board, NSIC, MGIRI and NI-MSME. The document discusses the schemes and programs run by the ministry and bodies to support MSMEs. It also covers initiatives targeted at specific regions, women, disabled people and international cooperation. Finally, it summarizes
This annual report from the Government of India's Ministry of Micro, Small and Medium Enterprises provides an overview of the ministry and the MSME sector in India. Key points include:
- The MSME sector is an important part of the Indian economy, generating employment and entrepreneurship.
- The ministry works to promote growth of MSMEs through various schemes and support programs.
- Statutory bodies like KVIC, Coir Board, NSIC, and research institutes work under the ministry.
- The report details the ministry's structure, role, schemes, initiatives for vulnerable groups, and general administration topics.
This annual report provides an overview of the Ministry of Micro, Small and Medium Enterprises in India for the fiscal year 2022-23. The report discusses the role and mandate of the Ministry in promoting the growth of MSMEs. It describes the organizational structure of the Ministry and its subordinate bodies like the Khadi and Village Industries Commission, Coir Board, and others. It also summarizes the schemes and programs run by the Ministry to support MSMEs and sections like women, disabled people and those in remote northeast regions. The report concludes with sections on statutory obligations of the Ministry around official language, vigilance, and right to information.
This document discusses small scale industries in India. It notes that small scale industries are an important part of the Indian economy, providing employment opportunities and contributing to balanced regional development. The objectives of developing small enterprises include generating employment, eradicating unemployment, encouraging development in rural and backward areas, and improving socio-economic conditions. Small scale industries play a key role in the manufacturing, trading, and services sectors. Over the decades, they have significantly increased production, employment, and exports in India.
Presentation on small business industryKirti Gupta
Small-scale industries are an important part of the Indian economy, accounting for 40% of manufacturing value added and 80% of employment. They contribute 42% to exports. A small-scale industry is defined as one with plant and machinery investment of less than Rs. 1 crore. Small industries provide several benefits - they are labor intensive, mobilize resources, involve small risks, have short gestation periods, generate employment, help equitable income distribution and regional development. However, they also face problems related to finance, marketing, technology and raw materials. The government promotes small industries through organizations like public sector banks, NABARD, NSIC, SIDBI and schemes for rural/women entrepreneurship development.
This document summarizes a research paper on micro, small, and medium enterprises (MSMEs) in India. It begins with definitions of MSMEs according to the Indian government, which categorizes enterprises based on investments in plant and machinery or equipment. It then discusses the economic importance of MSMEs in India, noting they employ over 80 million people and contribute significantly to GDP, exports, and capital formation. The document also outlines various government initiatives to support MSMEs and common problems they face accessing finance and other resources. Finally, it analyzes trends in bank financing for MSMEs in India over the past decade, finding an average 21.72% of total bank credit went to MSMEs from 2007 to 2014
Role of small bussiness in indian economy.ppt 2007 sandhyaPrachi Bajaj
The document discusses definitions of small business across different countries and criteria used to define them such as total capital investment, assets, employment levels, and sales turnover. It notes size does not always reflect an enterprise's true nature and other characteristics like ownership, management, technology, and geographical operations also differentiate small and large businesses. The role of small businesses in India's economy is described including importance in employment, capital optimization, regional development, and industrial production.
Small scale industry an introduction --indiaBinod Sinha
This document provides an introduction and overview of small scale industries (SSI) in India. It discusses how SSI makes up an important segment of the Indian economy. It defines micro, small, and medium enterprises based on their level of investment. It outlines the characteristics of small enterprises, including how they are locally focused, labor intensive, flexible, and help promote regional development. The document also discusses the advantages SSI provide like job creation and the rationale for their development in India like addressing unemployment.
entrepreneurship and small business management unit iiiPENDYSINGH
This document outlines the contents of four units related to entrepreneurship and small business management. Unit III discusses small-scale enterprises and the formalities for launching an enterprise. It defines small-scale industries and outlines the registration process, which requires obtaining necessary permits from pollution control boards. It also discusses preparing a project report, which is important for understanding project viability, and using project planning techniques like PERT and CPM.
This document analyzes the role of MSMEs in the Indian economy before and after the COVID-19 pandemic. It finds that MSMEs contribute 30-40% of India's GDP and provide the highest rates of employment. However, the pandemic severely impacted MSMEs. The government launched several measures like credit guarantees and delayed loan repayments to support MSMEs. There is an expectation that MSMEs will help revitalize the economy by boosting demand, employment, and reducing imports. Suggestions include efficiently allocating relief funds, promoting local production and exports, and developing rural enterprises.
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.
Micro, Small and Medium Enterprises, Key Government Schemes and Initiatives to support MSMEs, Current Financing Landscape for MSMEs, Issues and Challenges for MSMEs
Micro, small and medium enterprises (MSMEs) are an important part of the Indian economy, contributing significantly to manufacturing output, exports, and employment. The MSMED Act of 2006 defines MSMEs based on investment levels in plant/machinery for manufacturing or services equipment. MSMEs play a key role in the Indian economy by generating large-scale employment, especially in rural areas, sustaining economic growth and increasing exports, and promoting inclusive growth by providing livelihoods. However, MSMEs face challenges related to access to finance, technology, skills, and markets. The government has introduced various initiatives to improve the competitiveness, access to credit, and overall business environment for MSMEs in India.
This document discusses challenges faced by small and medium enterprises (SMEs) in India in adopting enterprise resource planning (ERP) systems. SMEs are an important part of the Indian economy, contributing about 17% to GDP. However, adoption of IT and ERP systems among SMEs has been unsatisfactory. The document outlines issues that Indian SMEs face in ERP implementation such as lack of skills, resources, and infrastructure. It also discusses challenges SMEs face in areas like financing, skills, production capacity, and accessing global markets. ERP systems could help increase SME efficiency and productivity if implemented successfully despite these challenges.
The document discusses Small and Medium Enterprises (SMEs) in India. It provides definitions of SMEs according to the European Union and United States. It outlines the history of the Ministry of Micro, Small and Medium Enterprises in India. It also describes the classification of SMEs according to investment size and different types of SMEs in India including their roles and challenges.
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.
Growth and Future Prospects of MSME in IndiaIJAEMSJORNAL
This document summarizes a research paper on the growth and future prospects of micro, small, and medium enterprises (MSMEs) in India. Some key points:
1) MSMEs play a vital role in the Indian economy, contributing about 45% of manufacturing output, 40% of exports, and creating employment for around 70 million people.
2) Over the past decades, the number of MSMEs, employment, investment, and output have grown significantly at compound annual growth rates of 11-18%.
3) However, MSMEs face challenges such as lack of access to finance, low productivity, and technology issues that have hindered faster growth.
4) The Indian government has
MSMEs role in driving the make in india initiativeSeilan Anbu
The document discusses the important role that Micro, Small, and Medium Enterprises (MSMEs) play in driving India's "Make in India" initiative, contributing approximately 45% of manufacturing output, 40% of exports, and employing over 36 million people. MSMEs promote balanced regional development, generate most non-farm jobs, and contribute to sustainable development. The government supports MSMEs through various programs and policies to strengthen the sector and help realize the growth opportunities it presents.
An Overview of MSME Sector in India with Special Reference to the State of Ut...ijtsrd
MSMEs, considered as "Engines of Growth" are crucial for the economy of developing countries like India due to its potential of creating vast employment opportunities. This Sector has caught the attention of policy makers as it is labour intensive and has the potential of reducing the problem of regional imbalances, ensure financial independence of rural people and assist in sustainable development. The Micro, Small and Medium Enterprises in India is being largely viewed as vital to the economic growth of the country in the 21st century. The present paper will focus on existing scenario and trends of MSME in India. This paper studies the current status of MSME sector in India, its performance, various initiatives taken by the government to accelerate the growth of this sector, as well as the problems faced by the MSMEs in Indian economy. Additionally, this paper dedicates one section to the MSMEs sector in the state of Uttarakhand. The State of Uttarakhand is facing the dire problem of intense migration of people from the hilly terrain particularly due to lack of employment opportunities in the rural areas of Uttarakhand and Uttarakhand badly needs sustainable and inclusive industrial growth of all sub regions of the state. Hence, this paper also analyses the status of MSMEs in the state of Uttarakhand and outlines the problems faced and also recommends the measures that should be taken to promote this sector. The study is a review which was conducted with the help of secondary data retrieved from MSME Annual Reports, other government reports, newspapers and research papers. Simranjeet Kaur Virk | Pinnacci Negi "An Overview of MSME Sector in India with Special Reference to the State of Uttarakhand" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-3 | Issue-2 , February 2019, URL: https://www.ijtsrd.com/papers/ijtsrd21520.pdf
Paper URL: https://www.ijtsrd.com/management/public-sector-management/21520/an-overview-of-msme-sector-in-india-with-special-reference-to-the-state-of-uttarakhand/simranjeet-kaur-virk
This document provides an overview of the Ministry of Micro, Small and Medium Enterprises in India. It discusses the background and mandate of the ministry, which is to promote and support the development of MSMEs in India. It outlines the organizational structure of the ministry and its divisions. It also describes the various statutory bodies and organizations that operate under the ministry, including Khadi and Village Industries Commission, Technology Centers, MSME Development Institutes, Coir Board, NSIC, MGIRI and NI-MSME. The document discusses the schemes and programs run by the ministry and bodies to support MSMEs. It also covers initiatives targeted at specific regions, women, disabled people and international cooperation. Finally, it summarizes
This annual report from the Government of India's Ministry of Micro, Small and Medium Enterprises provides an overview of the ministry and the MSME sector in India. Key points include:
- The MSME sector is an important part of the Indian economy, generating employment and entrepreneurship.
- The ministry works to promote growth of MSMEs through various schemes and support programs.
- Statutory bodies like KVIC, Coir Board, NSIC, and research institutes work under the ministry.
- The report details the ministry's structure, role, schemes, initiatives for vulnerable groups, and general administration topics.
This annual report provides an overview of the Ministry of Micro, Small and Medium Enterprises in India for the fiscal year 2022-23. The report discusses the role and mandate of the Ministry in promoting the growth of MSMEs. It describes the organizational structure of the Ministry and its subordinate bodies like the Khadi and Village Industries Commission, Coir Board, and others. It also summarizes the schemes and programs run by the Ministry to support MSMEs and sections like women, disabled people and those in remote northeast regions. The report concludes with sections on statutory obligations of the Ministry around official language, vigilance, and right to information.
This document discusses small scale industries in India. It notes that small scale industries are an important part of the Indian economy, providing employment opportunities and contributing to balanced regional development. The objectives of developing small enterprises include generating employment, eradicating unemployment, encouraging development in rural and backward areas, and improving socio-economic conditions. Small scale industries play a key role in the manufacturing, trading, and services sectors. Over the decades, they have significantly increased production, employment, and exports in India.
Presentation on small business industryKirti Gupta
Small-scale industries are an important part of the Indian economy, accounting for 40% of manufacturing value added and 80% of employment. They contribute 42% to exports. A small-scale industry is defined as one with plant and machinery investment of less than Rs. 1 crore. Small industries provide several benefits - they are labor intensive, mobilize resources, involve small risks, have short gestation periods, generate employment, help equitable income distribution and regional development. However, they also face problems related to finance, marketing, technology and raw materials. The government promotes small industries through organizations like public sector banks, NABARD, NSIC, SIDBI and schemes for rural/women entrepreneurship development.
This document summarizes a research paper on micro, small, and medium enterprises (MSMEs) in India. It begins with definitions of MSMEs according to the Indian government, which categorizes enterprises based on investments in plant and machinery or equipment. It then discusses the economic importance of MSMEs in India, noting they employ over 80 million people and contribute significantly to GDP, exports, and capital formation. The document also outlines various government initiatives to support MSMEs and common problems they face accessing finance and other resources. Finally, it analyzes trends in bank financing for MSMEs in India over the past decade, finding an average 21.72% of total bank credit went to MSMEs from 2007 to 2014
Role of small bussiness in indian economy.ppt 2007 sandhyaPrachi Bajaj
The document discusses definitions of small business across different countries and criteria used to define them such as total capital investment, assets, employment levels, and sales turnover. It notes size does not always reflect an enterprise's true nature and other characteristics like ownership, management, technology, and geographical operations also differentiate small and large businesses. The role of small businesses in India's economy is described including importance in employment, capital optimization, regional development, and industrial production.
Small scale industry an introduction --indiaBinod Sinha
This document provides an introduction and overview of small scale industries (SSI) in India. It discusses how SSI makes up an important segment of the Indian economy. It defines micro, small, and medium enterprises based on their level of investment. It outlines the characteristics of small enterprises, including how they are locally focused, labor intensive, flexible, and help promote regional development. The document also discusses the advantages SSI provide like job creation and the rationale for their development in India like addressing unemployment.
entrepreneurship and small business management unit iiiPENDYSINGH
This document outlines the contents of four units related to entrepreneurship and small business management. Unit III discusses small-scale enterprises and the formalities for launching an enterprise. It defines small-scale industries and outlines the registration process, which requires obtaining necessary permits from pollution control boards. It also discusses preparing a project report, which is important for understanding project viability, and using project planning techniques like PERT and CPM.
This document analyzes the role of MSMEs in the Indian economy before and after the COVID-19 pandemic. It finds that MSMEs contribute 30-40% of India's GDP and provide the highest rates of employment. However, the pandemic severely impacted MSMEs. The government launched several measures like credit guarantees and delayed loan repayments to support MSMEs. There is an expectation that MSMEs will help revitalize the economy by boosting demand, employment, and reducing imports. Suggestions include efficiently allocating relief funds, promoting local production and exports, and developing rural enterprises.
Seminar: Gender Board Diversity through Ownership NetworksGRAPE
Seminar on gender diversity spillovers through ownership networks at FAME|GRAPE. Presenting novel research. Studies in economics and management using econometrics methods.
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...AntoniaOwensDetwiler
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
Vicinity Jobs’ data includes more than three million 2023 OJPs and thousands of skills. Most skills appear in less than 0.02% of job postings, so most postings rely on a small subset of commonly used terms, like teamwork.
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OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
Independent Study - College of Wooster Research (2023-2024)
msme in employment generation
1. TOPIC :- Contribution of MSMEs (Micro,
Small & Medium Enterprises) In
The Employment Generation
Development In Hazaribag/ Jharkhand
INTRODUCTION :-
Micro, Small and Medium Enterprises are better known by the acronym
MSME. MSMEs are the backbone of the Indian economy. Silently
operating in differentareas across the country, more than 6 crore
MSMEs have a crucial role to play in building a stronger and self-reliant
India. These small economic engines have a huge impact on the
country’s GDP.
MSMEs contribute a staggering 30% to the country’s GDP, and around
45% of the manufacturing output, and approximately 48% of the
country’s exports. Additionally, more than 11 crore people are employed
in the MSME sector.They’re rightly referred to as the ‘Backbone of the
country.
The MSME ministry in order to strengthen the backbone of the
country targets to increase its contribution towards GDP by up to 50% by
2025 as India moves ahead to become a 5 trillion economy.
2. New Definition of MSMEs (effective from 1st July 2020)
The criterion of defining MSME enterprises was based on the MSMED
Act, 2006.It was differentfor manufacturing and services units. It was
also very low in terms of financial limits (i.e. Investment amount). Since
then, the economyhas undergone significant changes.
A new composite formula of classificationfor manufacturing and service
units has been notified.Now, there is no difference betweenthe
manufacturing and service sectors.
The government of India made a proposalto redefine MSMEs by the
Micro, Small and Medium Enterprises Development(Amendment)Bill,
2018,to classifythem as manufacturing or service-providing enterprises.
Under this bill, there would be no need for frequent inspections to check
the required investments needed to be made in the plant and machinery
needed.Also,the operations of MSMEs would be allowed to continue in
a transparent, non-discriminatory, and objective manner.
The new criterion is based on the Investment Amount and Turnover of
the enterprise.
While computing the Turnover of the MSME enterprises,it is provisioned
to exclude Exports turnover i.e. turnover with respectto exports will not
be counted in the limits of turnover for any category of MSME units
whether micro, small or medium. It is particularly important to note that
the provision of excluding the exports from the counting of turnover is
going to encourage the MSMEs to export more and more without fearing
losing the benefits of an MSME unit. This is expected to exponentially
add to exports from the country leading to more growth and economic
activity and creation of jobs.
Category Investment limit (in Rs.) Turnover limit (in Rs.)
Micro 1 crore 5 crore
Small 10 crore 50 crore
Medium 50 crore 250 crore
3. Union Ministry of Micro, Small and Medium Enterprises has issued a
Gazette notification to notify the new definition and criteria of MSMEs in
the country. The new definition and criterion are effective from 1st July
2020.
Previous/ Old Definition of MSMEs
Micro, Small and Medium Enterprises (MSME), are small-sized business
enterprises defined in terms of their investment. According to the
provisions of the Micro, Small and Medium Enterprises Development
(MSMED) Act, 2006 the MSMEs are classified into two categories:
1. Manufacturing Enterprises
2. Service Enterprises
1. Manufacturing Enterprises
The Manufacturing Enterprise is defined in terms of investment in Plant
2.ServiceEnterprises
The Service Enterprise is defined in terms of investment in equipment.
Enterprises Investmentin Plant& Machinery
Micro Enterprises Investment does not exceed Rs. 25 Lakh
Small Enterprises
Investment is more than Rs. 25 Lakh but does not exceed Rs.
5 Crore
Medium
Enterprises
& Machinery.
Investment is more than Rs. 5 Crore but does not exceed Rs.
10 Crore
4. MICRO, SMALL AND MEDIUM ENTERPRISES IN INDIA:
The Micro Small and Medium Enterprises (MSMEs) sector constitutes an
important segment of the Indian economy in terms of its contribution to the
country’s industrial production, exports, employment and creation of a broad
entrepreneurial base. So, it is rightly regarded as the backbone of the modern
Indian Economy. With the advent of planned economy from 1951 and the
subsequent industrial policy followed by Government of India, both planners
and Government earmarked a special role for small-scale industries and
medium scale industries in the Indian economy. Their significance has not
waned in the wake of LPG and thereafter. They enjoy certain inherent
strengths such as lower over-head costs, flexibility in production, informality in
labour relations, exploitation of local and latent resources and skills, capacity
to execute small orders and to offer customised services. Empirical evidence
indicates that small-scale enterprises can be an important vehicle for meeting
the growth and equity objectives of developing economies (Ali, Jayasheela &
Hans, 2006), and also meet the requirements of hi-tech and environment-
friendly global standards.
Enterprises Investmentin Equipment
Micro Enterprises Investment does not exceed Rs. 10 Lakh
Small Enterprises
Investment is more than Rs. 10 Lakh but does not
exceed Rs. 2 Crore
Medium
Enterprises
Investment is more than Rs. 2 Crore but does not
exceed Rs. 5 Crore
5. As per the Micro Small and Medium Enterprises Act, 2006, MSMEs are
broadly classified into two categories (a) Manufacturing and; (b) those engaged
in supplying services. Both categories of enterprises have been further classified
into micro, small and medium and large enterprises based on their investment in
plant and machinery for (manufacturing enterprises) or on equipments (in case
of enterprises providing/rendering services). According to the MSMEs Act
under service enterprises category, micro enterprises is an enterprise where the
investment in equipment does not exceed Rs.10 lakh; a small enterprise is one
where the investment in equipment is more than Rs.10 lakh but does not exceed
Rs.2 crore; a medium enterprise is that where the investment in equipment is
more than Rs.2 crore but does not exceed Rs.5 crore. While for enterprises
engaged in the manufacture or production, processing or preservation of goods,
a micro enterprise is one where investment in plant and machinery does not
exceed Rs.25 lakh. Small enterprise is one where investment in plant and
machinery can be more than Rs.25 lakh but does not exceed Rs.5 crore. In a
medium enterprise, the investment in plant and machinery can be more than
Rs.5 crore but does not exceed Rs.10 crore (Annual Report Micro, Small and
Medium Enterprises, 2008) Before this Act Government defined only Small
Scale Industries (SSI), and accordingly “SSI is an industrial undertaking in
which the investment in fixed assets in plant and machinery whether held in
ownership terms or on lease or by hire purchase, does not exceed Rs.100 lakh”.
The MSMEs – in view of their employment potential and other intrinsic
advantages – are found suitable for rural economy and have been promoted on
priority. The developed countries have formulated programs for these industries
to achieve prosperity. In Japan the growth of small enterprises has provided the
base for new society and even today it exhibits industrial excellence, which has
astonished the world. The Japanese economy, which was totally destroyed
during the War, has regained its strength to an appreciable extent due largely to
the efforts of small enterprises and highest labour productivity.
6. Countries in Europe, Asia, Africa and Latin America have formed inspiring and
protecting policy framework for promoting small enterprises. Italy, which was
once called as the “Sick man of Europe”, has prospered in small industries,
which resulted in the rapid growth of the economy and is now called as “Japan
of Europe” (Hejamadi, 2000).
More recently, enhancing MSMEs productivity and profitability has been
viewed as an effective way of fostering the private sector contribution to the
growth and equity objectives of development. MSME play a key role in the
industrialisation of a developing country. This is because they provide
immediate large scale employment and have a comparatively higher labour-
capital ratio; they need a shorter gestation period and relatively smaller markets
to be economic; they need lower investments; offer a method of ensuring a
more equitable of distribution of income and facilitate a effective mobilisation
resources of capital and skill which might otherwise remain unutilised; and they
stimulate the growth of industrial entrepreneurship and promote a more
egalitarian pattern of ownership and location.
In the light of these facts, this paper makes an attempt to (a) analyse the
performance of MSMEs in India, (b) understand the problems and challenges
faced by this sector, and (c) suggest some policy measures.
Growthand Performance ofMSMEs
While historically, the small scale industries were related to the small
man and his own resources, after Independencethere has been a rapid growth
of the small enterprises sector due to a number of reasons (Jayasheela and
Hans, 2006). Thus, over the years the small enterprises sector registered
continuous growth in the number of units, production, employment and
exports. According to the Ministry of MSMEs, the number of micro and small
enterprises (MSEs) in India rose from 109.49 lakh in 2002-03 to 128.44 lakh in
2006-07 (see Table 1).
7. Table – 1
Number of Micro and Small Enterprises in India (in lakh)
Year
No of Units
Total
Registered Unregistered
2002-03 16.3 93.46 109.49(4.1)
2003-04 17.14 96.83 113.95(4.1)
2004-05 18.24 100.35 118.59(4.1)
2005-06 19.30 104.12 123.42(4.1)
2006-07* 20.32 108.12 128.44(4.1)
Medium Enterprises has been defined for the first time under the
MSMED Act, 2006. Hence no firm statistics are available with respect to
medium enterprises presently. However, informal sources suggest medium
enterprises in India, to be between 10000-15000. Further it is estimated that
they contribute about 2 % of GDP, over 10 % to manufacturing output and
around 10 % to the national export (Annual Report Ministry of MSME, 2007).
Employment Generation
It has already been shown in our analysis that employment growth rate
for small enterprises in the recent period are higher than that of the large scale
sector (Debroy; Laveesh, 2005). The employment opportunities provided by
the Micro and Small Enterprises sector have a general increasing trend (see
Table 2). The annual average growth rate of the employment opportunity
provided by the MSMEs sector, in India is impressively at 4.04 %.
8. The MSMEs provide employment to an estimated 31.2 million persons in the
rural and urban areas of the country which is second only to agriculture in
absolute terms. Thus, MSMEs sector in India has also played a vital role in
employment generation for a labour-surplus economy.
Table- 2
Employment Generation (lakh persons)
Year Employment Growth over previous years (%)
2002-2003 263.68 4.5
2003-2004 275.30 4.4
2004-2005 287.55 4.5
2005-2006 299.85 4.3
2006-2007* 312.52 4.2
GrowthTrend of Production
There has also been a steady growth in the production front of the
MSMEs. In the year 2002-03 the increase in the production over the previous
year was registered 8.7 % at constant prices i.e.2001-02 prices. Similarly the
increase in production in the year 2005-06 was 12.3% and 12.6 in 2006-07(see
Table 3).
9. Table- 3
Growth of Micro and Small Enterprises’ production
Year Production (Rs. Crore)# Growth over previous years
(%)
2002-03 306771 8.7
2003-04 336344 9.6
2004-05 372938 10.9
2005-06 418884 12.3
2006-07* 471663 12.6
Export Performance
In addition to the employment generation, the role of MSMEs sector in
the country’s exports is also commendable. Overall MSMEs exports contribute
around 45-50 % of export basket while direct export account for nearly 35 % of
total exports. The major MSMEs exports consists of low skilled labour-intensive
goods like garments, leather products, gems and jewellery products, sport
goods plastic products processed food etc. The exports of MSMEs sector
continuously showed increasing trends , Exports from MSMEs Sector was
Rs.386013 crorein 2002-03 with 20.7 % growth over the previous years, which
increased to Rs.150242 crore in 2005-06 with a growth rate of 20.8 % growth
over the previous years.
10. Table – 4
Exports from MSMEs Sector
Year Exports from MSMEs Sector(Rs.
crore)
Growth over previous years
(%)
2002-
2003
86013 20.7
2003-
2004
97644 13.5
2004-05 124417 27.4
2005-06 150242 20.8
The MSMEs sector has thus, acquired a prominent place in the socio-
economic development of the country during the past five decades,
contributing to the overall growth of the gross domestic product towards
employment generation and exports. According to new definition the MSMEs
contribute nearly 8-9 % of Gross Domestic Product of our country (Based on
Third All India Census of Micro and Small Enterprises 2001-02, Ministry of
MSMEs, 2007). Having emerged as the engine of growth for Indian Industry,
the performance of MSMEs sector has had a direct impact on the growth of
the national economy. The micro and small enterprises sector, which accounts
for 37 % of the country's manufacturing output, can achieve sustained higher
growth by enhancing its technological capabilities and improving product and
service quality, noted the Economic Survey 2007-08. The sector with a total
size of US$140 billion, contributing over 45 % of the country's industrial
production and around 40 % of the total exports and employing over 31
million people can source improved manufacturing techniques and
management processes with greater ease, said the Survey (CII, 2008; The
Hindu Business Line, 2007).
11. STATEMENT OF PROBLEMS AND CHALLENGES :
With increasing competition on account of globalisation of the Indian
economy, size of the enterprises and the level of technology employed by
them have assumed critical significance in the context of the small enterprises
becoming globally competitive. Several policy initiatives have been taken
during the years to address the problems faced by the sector, which mainly
relate to access to timely and adequate credit, technological obsolescence,
infrastructure bottlenecks, marketing constraints and a plethora of rule and
regulations. Despite numerous policy measures during the past four decades,
Indian small-scale units have remained mostly tiny, technologically backward
and lacking in competitive strength, vis-à-vis the large units. Following are the
some of the reasons for their failure.
Problem of Credit :
Lack of adequate and timely institutional credit is a frequent complaint
of the Micro, Small and Medium Enterprises. The capital base of majority of
MSMEs is very weak. Banks insist on collaterals, which the small
entrepreneurs, with limited resources, are unable to furnish. Bank officials
frequently point out to the high level of Non Performing Assets and the poor
culture of repayments to justify their cautious lending policies. The problem is
that there is no trust and understanding between bank officials and
industrialists in India. During recession, the bankers often cut back on lending,
impose heavy penalties for defaults and try to recover as many advances as
possible. This makes it nearly impossible for the industry, and especially the
small-scale industry, to survive through a recession.
12. A Study by the Federation of India Chambers of Commerce and Industry
March 2004 pointed out that the share of small industry sector in bank credit
outstanding which was 14.2 % earlier, has come down to 11.1 % in March
2003. The shortage of finance and credit creates a whole group of problems
relating to size of the unit, the quality of labour, market coverage, purchase of
raw materials, machinery and equipment; all these problems in turn lead to
low and poor quality of production .
Problem of Marketing :
Marketing is another major stumbling block for MSMEs as they lack
marketing wherewithal to sell their products effectively. Financial difficulties
don’t permit them to offer attractive credit terms etc to the marketing
intermediaries. Another problem being faced by them in the field of marketing
is from competitive (dis) advantage vis-à-vis large-scale units, because of
shortage of capital and financial resources etc. Many MSMEs supplying the
same product creates a situation of competition among them. Large-scale
industries finding themselves in a strong bargaining position, a purchase
product from MSMEs at competitive rates the result they ultimately lose in the
bargain.
Problem of Power :
There is inadequate supply of power for the MSMEs of the country. The
supply of power is uncertain and breakdown is frequent which results in
13. damage to the plant and causes suspension of work for long hours. The
shortageof power was 9.4 % in the year 1986-87, and 10.8 % in 1987-88, but it
increased to 17 % in 2001 (Third SSI Census Report 2001-02; Ramappa &
Basavaraja, op cit).
Problem of Raw Material :
In view of rising tempo of industrial activity the shortage of right type of
raw material at standard price has affected the entire industrial sector.
Because of their smallness and weak financial position, MSMEs are in a
vulnerable position. Often they have to utilise the services of middlemen to get
raw materials on credit. Such an arrangement has serious repercussions on
costs and revenues. The situation is particularly disadvantageous when raw
materials are imported, as the profit margins of middlemen are rather high.
Their meagre resources induce small industrialists to use cheap and inferior
materials, which naturally affects the quality of their finished products.
Moreover irregular supply of certain raw materials adversely affects their
production programs (Desai, 2004).
Problem of Closure of Units :
Closureof units in the registered SSI sector has been a perennial feature.
In the First Census of registered SSIs (now MSMEs) conducted in 1973-74, it
was found that 38.2 % of the units registered till 30th
November 1973 was
closed. In the third census observed that, out a total 22, 62,401 permanently
registered units surveyed in the registered SSI sector, 8, 87,427 units (39 %)
were found closed in the census. Of these 3, 36,492 units (38 %) were located
in the rural areas (Third All India Census of SSIs, op. cit.; Ramappa and
Basavaraja, op. cit). In many cases there are more than one reasons operating
14. simultaneously and they may be linked to the same source too. This results in
sickness and closures.
Thus, we understand that today the main limitations of MSMEs are: low
capital base, concentration of functions in one/two persons, inadequate
exposure to international environment, inability to face impact of WTO regime
and inadequate contribution towards R & D, and lack of professionalism.