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Problem of MSME's in India

The document discusses various challenges faced by micro, small, and medium enterprises (MSMEs), including inadequate loans, high-interest rates, and competition from larger companies. It highlights issues such as poor infrastructure, lack of skilled manpower, outdated technology, ineffective marketing, and complex regulations that hinder growth. Recommendations for improvement include better credit arrangements, training programs, and regulatory relaxations.

Small Business & Entrepreneurship◦
CHANDNI AGARWAL Semester III (MBA – M52) MONIRBA, University of Allahabad
 To know various problems that affect the growth of micro small and medium enterprises.  To determine the extent to which these factors affect the growth and survival of enterprises.
 The banks are not providing adequate amount of loans to MSME’s.  The owners of MSME’s has to produce different type of papers for their worthiness.  The interest rate from other sources of loans are very high.
 Globalization is hampering the success of MSME’s.  The big companies are able to provide better quality at cheap prices.  Big companies have advantage of their position in market.
 Because of poor infrastructure, low production capacity at high cost.  Issues of storage.  Inadequate infrastructure facilities including power, water, roads etc.
 Skilled manpower is not available to MSME’s.  The training and development programs conducted by MSME’s are not sufficient.
 For MSME’s required raw material, skilled work force and other inputs are not available in the market.  Results in high production price or low product quality.
 The owners of MSME are not aware of the latest technology.  The methodology used is outdated.  Absence of in-house research and development.
 Unable to spend large amount on development of marketing facilities.  The ineffective advertisement and poor marketing channels due to lack of resources lead to poor selling.  Designing, packaging and product display.
 Various laws and regulations stops the growth of industries. Few of them are very complex.  There are 44 central laws and more than 150 state laws on the labor laws.
 Misuse of government subsidies and incentives by entrepreneurs.  Creates problem for genuine firms to gain help from government.
 Mutual supply of Technologies  Constitution of Panel of Consultants  Determination of technological needs  Training and awareness programs  Relaxation in labor laws  Adequate credit arrangement  Regular supply of raw material and inputs
Problem of MSME's in India