Professional Documents
Culture Documents
Introduction
Micro, Small and Medium Enterprises (MSMEs) are
referred as the back-bone of the Indian economy.
It is the largest employment providing sector
employing more than 600 lakh persons.
This sector of economy uses local resources and do
value addition to it.
In recent years it has emerged as most dynamic
displaying phenomenal growth & contributes around
10% in the GDP of the country.
It contributes 40% in the total export of the country
and produces around 7500 products involving
technology upgradation
Features
Most of the MSME are family owned business
& lacks leadership.
Most of the MSME have simple flat structure
rather than a hierarchical one.
It is One man show & single person, the
entrepreneur plays a role of marketing, HR,
Finance head.
Owner has complete involvement & remains
the final decision maker.
Problems faced by MSME sector in India
The list of the problems that are faced by existing/new companies in SME sector
are as under:
1. Absence of adequate and timely banking finance
2. Limited capital and knowledge
3. Non-availability of suitable technology
4. Low production capacity
5. Ineffective marketing strategy
6. Constraints on modernisation & expansions
7. Non availability of skilled labour at affordable cost
8. Follow up with various government agencies to resolve problems due to lack of
man power and knowledge etc.
9. There supply is to the large industries and they are solely dependant on LCB for
orders.
10. The pricing strategy is decided by the large industries.
11. As such SME sector lacks bargaining power.