MSMEs-Addressing Issues

Abstract

Indian MSMEs constitute a major part of the entire industrial sectors producing goods and also of exports. They are also able to employ a huge number of peoples next to agriculture and manufacture a good number of products ranging from traditional to high technology based products. Because of their small size and flexibility in decision making they are able to react quickly to the changes in the surrounding environment as they don’t have a long chain in decision making but at the same time they suffer from many resource constraints. One of the most significant constraints suffered by MSMEs is the financial constraint. Other constraints include human resource, obsolete technology and challenges in complying with Government regulatory procedures. Generally they serve a narrow market by establishing a close contact with customers. MSME sector in India is highly heterogeneous in terms of the size, variety of products and services, and levels of technology. Keeping in view of the challenges, their diversified nature and important role in manufacturing in India, the current study on manufacturing MSMEs was undertaken with the aim to study emerging patterns in innovation to improve the performance of MSMEs.