MSMEs-Addressing Issues

  • R. SrinivasanEmail author
  • C. P. Lohith
Part of the India Studies in Business and Economics book series (ISBE)


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.

The key takeaways for the reader from this chapter are listed below
  • MSMEs: past versus present

  • Need of MSMEs for Indian economic growth

  • Issues faced by MSMEs

  • Issues that needs immediate attention.


Manufacturing Systemic innovation Entrepreneur Harmonized system Venture capital 


  1. Ministry of micro, small & medium enterprises. Annual report 2010–2011Google Scholar
  2. Ministry of micro, small & medium enterprises. Report of the working group on micro, small & medium enterprises (MSMEs) growth for 12th five year plan (2012–2017)Google Scholar

Copyright information

© Springer Nature Singapore Pte Ltd. 2017

Authors and Affiliations

  1. 1.Department of Management StudiesIndian Institute of ScienceBengaluruIndia
  2. 2.Department of Mechanical EngineeringSiddaganga Institute of TechnologyTumakuruIndia

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