Micro, small and medium enterprises (MSMEs), including
khadi and village as well as rural enterprises, play a pivotal role in
the overall industrial development of the country. They have been the
significant contributor to the national income, with their huge involvement
in country's industrial production, exports, etc. They not only help
in providing employment opportunities to millions of people across the
country, especially to the village artisans and rural people, but also
check the problem of economic concentration in the hands of a few. They
create a sound entrepreneurial base in the economy by developing and nurturing
the talents, skills, etc. of small and medium scale entrepreneurs. The
labour intensity in the MSME sector is estimated to be considerable higher
than the large enterprises. Thus, this sector has been regarded a priority
status by both the Central and the State Governments.
Inspite of this, the MSMEs continue to face several problems
in their day-to-day operations, that is, in production and marketing of
their products. They find it difficult to sell their output at remunerative
prices and cannot spend much on advertising, marketing research, etc.
They also face stiff competition from large firms. Inadequate infrastructural
facilities and access to credit are other major problems. MSMEs are often
unable to procure adequate financial resources for the purchase of machinery,
equipment and raw materials as well as for meeting day-to-day expenses.
Further, they find it difficult to recruit and motivate skilled managerial
and technical personnel. They are mainly reluctant to adopt modern methods
of organisation and management.
Although, the primary responsibility for promotion and development
of MSMEs lies with the concerned State/ Union Territory (UT) Governments.
But, the Central Government has always taken active interest in supplementing
the efforts of State/UT Governments through its various regulations, as
MSMEs have huge potential both in terms of creation of wealth and employment
as well as for the proper growth of related sectors of the economy. In
India, the Ministry of Micro,
Small and Medium Enterprises is the main central authority which assist
the States/UTs in their efforts to promote growth and development of MSMEs.
It has been implementing several schemes/programmes and policies so as
to enhance the global competitiveness of the MSMEs. These relate mainly
to simplified systems and procedures, easy access to capital, positioning
the MSMEs in the global value chain by enhancing their productivity, technology
upgradation, quality improvement, skill development, access to both domestic
and international markets, etc.
Udyami Helpline: 1800 180 6763