MSMEs CHALLENGES AND OPPORTUNITIES: THE KEY TO ENTREPRENEURSHIP DEVELOPMENT IN INDIA

Commerce

Worldwide, the micro small and medium enterprises (MSMEs) have been accepted as the engine of economic growth and for promoting equitable development. The major advantage of the sector is its employment potential at low capital cost. The labour intensity of the MSME sector is much higher than that of the large enterprises. Indian SMEs sector plays a pivotal role in the country's industrial economy. It also contributes to the growth of foreign exchange earning with low import-intensive operations. Indian SMEs also play a significant role for Nation development through high contribution to Domestic Production, Significant Export Earnings, Low Investment Requirements, Competitiveness in Domestic and Export Markets and Generate new entrepreneurs by providing knowledge and training. SMEs that have strong technological base, innovative, international business outlook, competitive spirit and willingness to restructure them can fight against the Present challenges easily. As per available statistics (4th Census of MSME Sector), this sector employs an estimated 59.7 million persons spread over 26.1 million enterprises. It is estimated that in terms of value, MSME sector accounts for about 45% of the manufacturing output and around 40% of the total export of the country.

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