Spacer
 
Spacer
  Business.gov.in Indian Business Portal
An Initiative of India.gov.in
 
 
Quick Menu
 
Entrepreneurs
spacer
Entrepreneurship Entrepreneurship
Fostering Entrepreneurs Fostering Entrepreneurs
Micro, Small and Medium Enterprises (MSME) Micro, Small and Medium Enterprises (MSME)
   
 
Problems Relating to MSMEs
Entrepreneurs
Types of Problems:
Marketing and Export
Previous Page
spacer
Out of several problems faced by small and medium scale entrepreneurs, the absence of adequate marketing and export facilities is one of their main concerns. Almost all types of business enterprises face marketing problems, but the small and medium scale enterprises face greater difficulty in the marketing and distribution of their products. Some of these are:-
  • Small and medium entrepreneurs tend to face tough competition from the products and sales/ marketing strategies of large scale firm's entrepreneurs. They, at times, find it very difficult to cope with large scale entrepreneurs in terms of cost, quality, standards, popularity, meeting ever-changing demands/ preferences of consumers, etc.
  • Most of them do not have their own marketing network. So, they ultimately have to rely on outside sources for distributing their products. This also tends to raise the cost of their products and services.
  • Most of them do not have good knowledge and/ or experience of various marketing concepts and strategies. As a result, they are unable to understand quickly and accurately the prevailing as well as constantly changing market trends. Furthermore, inspite of having huge potentialities of extensive market for their products, they are mainly unwilling to opt for efficient marketing techniques.
  • They also lack the resources and funds needed for effective sales promotion. Many of such enterprises cannot afford to spend much on advertising, sales promotion, market research, etc.
  • They find it difficult to sell their output at remunerative prices because of higher cost of production and non-standardised quality of products.
  • They also have to sell their products at throwaway prices due to their weak bargaining power (especially in dealing with big buyers) and urgent needs of funds.

Thus, it is right to say that most of small and medium entrepreneurs do not correctly understand as to what kind of products are actually needed by the market, how big/small is the market, when the products are needed and how to deliver such products. All these problems keeps them mainly isolated from the market trends and conditions and, thus, tend to restrict their operations.

Besides, small and medium scale enterprises are the most significant contributor in the field of India's exports. There has been a prominent increase in the exports from this sector of both traditional and non-traditional goods including jewellery, garments, leather, hand tools, engineering goods, software, etc. Also, the enterprises with good export performance have greater stability in the economy. But, there is still lot of problems in exporting the products by small and medium entrepreneurs to other regions/ countries/ areas. They are not very familiar with the steps and formalities involved in exporting goods from India. They need to be made aware of all the steps involved in the process, such as, 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.

^ Top

 
 
Government of India
spacer
 
 
Business Business Business
 
  Search
 
Business Business Business
 
Business Business Business
 
How Do I
Business Register a Company
Business Register as Employer
Business Complaint with Central Vigilance Commission (CVC)
Business Apply for TAN Card
Business File Income Tax
 
Business Business Business
 
Business Business Business
 
  Help us enhance
Business.gov.in
Tell us what more you would like to see
 
Business Business Business
Business
Business Business Business
 
Tenders
View and Access latest Government Tenders...
 
Business Business Business
Business
Business Business Business
 
 
Patent Information
Business
Copyright
Business
Forms Related to Patents
Business
Forms for Design
 
 
Business Business Business
 
 
 
Spacer
Spacer
Business.gov.in  
 
Spacer
Spacer