Struggle for MSME

‘Make in India’ is the slogan for uplifting the economy of the nation. MSMEs have proved to be a great source of revenue for the Indian government. In the recent past, MSME has significantly developed and it has created a culture of entrepreneurship. These enterprises provide a variety of products and services to meet domestic and international needs. However, at some initial point, various problems are faced by them and there was a bit of struggle also they faced. Some of the major problems are- MSMEs have limited availability of raw material and it has turned out to be an absolute scarcity. Moreover, poor quality of raw material is available at high costs. The emergence of modern small-scale industries has led to the scarcity of material to micro and small enterprises that are mostly dependent upon the local raw material for their production efforts. E.g. handloom industry faces this kind of crises. MSME entrepreneurs face a financial struggle. Lack of adequate capital hampers their growth from expansion. These industries generally belong to the poor class who have limited source of credit. Due to the weaker economic position, such companies fear from taking loans from commercial banks. Poor marketing skills is another struggle faced by MSMEs or SSI. They have a weak marketing strategy and as a result, face competitive disadvantages. In this field, large companies take a greater advantage leaving behind small enterprises. However, the Indian government has now reserved certain items for this purpose. Non-availability of technology for manufacturing best quality products restricts growth level. The Huge cost is required to invest in technology and that cannot be fulfilled by these enterprises. At last, they have to manage with minimum technology for production. Non-availability of power is a major concern for MSMEs. Sometimes, they have to face entire day cut out creating hindrance in production and leading to losses. Non- availability of manpower- Due to low budget, these enterprises cannot employ a large number of workers which further leads to less outcome. Only limited manpower perform tasks throughout the day. But overall, the Ministry of Micro, Small and Medium Enterprises has been executing various schemes and programs to overcome all these problems. E.g. Prime Minister Employment Generation Programme, Marketing Assistance, Credit Guarantee, Micro Finance Programme, Market Development Assistance and much more. And these schemes are providing a great helping hand in the working of MSMEs. For more information, Contact LegalRaasta.