Struggles & Solutions for MSME

“MSMEs need to be completely aware of the various initiatives by the Government and correctly utilize these to their benefit. One of the key constraining factors becomes awareness and therefore lack of knowledge to utilize these effectively. Further, the Government schemes must be monitored and effectively modified to suit the needs of the MSME industry”

The MSME industry (micro, small, and medium enterprises) has immensely contributed to India’s socio-economic development. Although the Indian government is making every possible effort to develop this sector, MSME enterprises still must combat several challenges and hardships.

MSMEs have a significant contribution to Indian economic growth, yet they struggle to have access to wide markets and do not get the opportunity and support to expand their market across the globe. They have not been able to scale the business for want of access across the domestic and the global market. The case continues to be so capping the growth potential. The six major problems that are faced by old and new businesses in SME sectors are:

Solutions for MSME’s are –

• MSME owners should invest some time in getting acquainted with the latest schemes and policies of the government. Apart from this, many private and public sector banks have also come forward to offer financial help to MSMEs. Most of them are giving business loans to small, medium, and micro-entrepreneurs. Low-interest rates, flexible repayment policies, and easy processing are the highlights of these schemes.
• While dealing with a reduced staff, most companies are going to try increasing the amount of automation in their business processes. All functions that can possibly be automated without high investment will be done so with great haste. Cloud ERP and other Cloud business Software like E-Procurement software (cloud procurement to pay software), Project Management Software, Inventory Management Software, cloud Compliance Management Software, etc. will be in great demand. It will become essential for survival. Till the time there is a cure for Covid-19, businesses will never want to take risks again and will plan to move for cloud platforms.
• MSME owners should take the initiative to improve their stand in the competition. They should also connect with a professional to refine their marketing skills, pricing policies, and network. The government has also launched several exclusive schemes like DMP, EMP, and MCY, to promote the sale of domestic goods.
• MSMEs should make efforts to organize things at their end. The entrepreneurs should also try to offer higher wages to the workers. On-the-job training will boost the productivity and morale of the employees. On the other hand, the government should also simplify labor laws in the country.
• MSME owners should enroll themselves in government IT development programs. It will help them in understanding the latest technological developments in their sector. It will also increase their access to modern technology. The Indian government should also encourage the MSME owners by opening IT centers in rural and underdeveloped areas.
• MSMEs must be open to welcome changes in business strategies according to the feedback of the consumers. They should also try to identify and analyze the causes of their low sales. Using versatile modes to promote products and services will prove to be a masterstroke for this sector.
• Excellent customer service and high-quality products at affordable rates are the secrets to success in this industry. The government, on the other hand, should also motivate MSMEs by promoting domestic products in the market.

Although there are many advantages of MSME in India, this sector is still lagging in many aspects. The Indian government needs to refine its MSME development policies. In contrast, young entrepreneurs should also make efforts to develop their technological and production skills. They should also learn the latest marketing tactics to put their best foot forward in the market and help the sector grow.

“The MSME sector has slowly come into the limelight, with increased focus from the government and other government institutions, corporate bodies, and banks. Policy-based changes; investments into the sector; globalization and India’s robust economic growth have opened up several latent business opportunities for this sector.”