DECEMBER 2017
India’s MSMEs- Challenges
India being a country with its 65% of population below the age of 35 which has a growing number of individual’s joining the job market finds it difficult to compete with the world economy. We are becoming large consumers who have the potentiality to produce. We are most concerned of MNCs, share market and stock exchanges. Knowingly or unknowingly forgetting the MSMEs, which contribute India’s 40% of workforce and export.
Though MSMEs are small investment enterprises their contribution to our economy is very significant .MSMEs are important pillars of our economy, which have the potentiality to grow by diversifying basis of country’s manufacturing system. It can act as an engine of economic growth which provides equitable development.
As it is a Homogeneous sector, the priorities are different. So each MSMEs faces different challenges like Credit, Infrastructure, Technology, Market, Skilled Labor and above all these the third rate treatment by government and the public makes it difficult to grow.
Credit: Inadequate flow of credit from financial institutions , weak financial standing , shortage of fund , inability of banks to lend for longer period and lending on the basic of collateral securities make it difficult for entrepreneur’s to approach bank which forces them to get credit from unorganized sector at a huge rate which later of engulfs the MSME
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