Micro Small and Medium Scale Enterprises - 'Hidden and Helping Hand in Economic Growth'

Abstract

Micro Small and Medium Scale Enterprises (MSMEs) generate growth and development for any economy. These enterprises are faced with a diversity of problems in India due to numerous domestic and global economic problems, and policy inconsistencies. The result is a high poverty rate. The objective of this review paper, therefore, is to critically examine the problems facing the MSMEs in India and identify the options strategies utilised by these MSMEs as demonstration alternatives. The manufacturing sector’s contribution to national income until today remains low. Major findings include lack of management skill, poor record keeping, weak access to financing, multiple taxation, and inconsistent policies. Seminars and workshops are recommended to improve MSMEs’ management capabilities, as well as the institutional coordination of the efforts of relevant agencies and institutions, and the streamlining of the myriad of taxes stifling MSMEs.