Journal Title : International Journal of Modern Trends in Engineering and Science
Volume 03 Issue 05 2016
ISSN no: 2348-3121
Page no: 87-90
Abstract – In India, the Micro, Small And Medium Enterprises (MSMEs) play a vital role in the overall industrial economy of the country. The role of micro, small and medium enterprises (MSMEs) in the economic and social development of the country is well established. The MSME sector is a foundation of entrepreneurship, in which it is preoccupied by creativity and innovation of the minds of individual. This sector contributes 8 per cent of the country’s GDP, 45 per cent of the manufactured output and 40 per cent of its exports. The MSMEs provide employment to about 60 million persons through 26 million enterprises. The labor to capital ratio in MSMEs and the overall growth in the MSME sector is much higher than in the large industries. The geographic distribution of the MSMEs is also more even. Thus, MSMEs are significant for the national objectives of growth. Survival has become a fiery issue for MSMEs, with many hurdles and challenges like credit availability, product awareness, debt and poverty, venture capital, technological innovation, professionalism and training, market accessibility, Infrastructure, competition from MNC, raw materials and other inputs, complex labor law and red tape etc. There is need to support the MSME for which opportunities like hub of the government and banks are readily available. Employment opportunities, mutual change of technology, customer satisfaction, minimization of regional imbalance, enhancement of export and foreign investment are some of the other opportunities can be availed to develop the MSME’s and improve their own nation’s capacity to compete in the global markets. It needs to simplify the processes for entrepreneurs to register and start up a company. Policymakers must boost the innovative edge of smaller firms. This paper would help researchers, policy makers and the youth of this country to set up new enterprises to become job-providers from being job-seekers. I sincerely hope that this study will be a useful reference for the existing and prospective entrepreneurs.
Keywords— MSME; Challenges of MSME; Opportunities of MSME
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