Micro, small and medium enterprises have prolifically contributed to the socio-economic development of India and have grown enormously within the past few years. The Indian government is helping much for them for the development for future growth even they are facing several challenges now. MSMEs plays a vast role in the employment opportunities for and works with the government for development especially in rural areas of the nation. MSMEs are facing a lot of challenges and have a lot of improving areas where development has to knock on the door. Addressing some of those hardships and providing proper solutions will lead to the growth of MSMEs as well as the economy of the nation. Some of the challenges faced by MSMEs are mentioned below.
Lack of finance because of lack of financial literacy is the most faced challenge by MSMEs in the country. As the majority of the MSMEs are from rural areas and hence unaware of the financial opportunities and privileges which are granted to them. And this leads to a financial crisis among them. MSMEs loans, the interest rate is also an area where MSMEs lack knowledge which comes under the developmental policies put forward by the government for the growth in the financial array. Purchasing new materials, avail of technologies and much more also costs more which should be handled better by getting to know about the policies.
2. Technology Related-
MSMEs sector is limited with technologies which is a must thing in the development. Also, MSMEs sector owners couldn’t afford the equipment for technical support and the workforce won’t be much used to the advanced technologies. This results in the process of slower production and low product qualities.
Lack of management skills discourages the growth of the MSMEs sector and without the right kind of marketing strategies, the sales cannot flourish and cannot boost a customer-friendly environment. Lack of professionalism and market trends will also lead MSMEs to step backward. Poor product promotion, lack of knowledge in production, branding is also a challenge faced by MSMEs which makes high competitions with other sectors and large-scale industries.
4. Labor challenges-
The limited capital, skilled workforce at an affordable cost is another distress for the MSMEs sector where the workforce is the mandatory thing. Employee management in a poor manner and no proper training sessions are the major fault faced in the country and this leads to poor review and complaints. Lack of talent in the workforce will also lead to the discouragement of the sector and loss of productivity.
Many aspects are even lagging in the growth of MSMEs which can be redefined and reframed while involving developmental policies, technical education, the effort for developing the production skills. Making step-by-step developmental strategies will enable to overcome the challenges which are facing by the MSMEs. Also, MSMEs should start learning, make themselves and the workforce adopt new trends and technologies as well as marketing strategies to improve customer trust.