Role of Government in Supporting Entrepreneurship and MSME Development in India

Abstract

The Micro, Small and Medium Enterprises (MSME) sector has emerged as one of the most vibrant and dynamic sectors of the Indian economy in the last 5 decades. MSMEs not only play an important role in providing large number of employment opportunities at lower capital cost as compared to large industries but also help in industrialization of rural and backward areas, thus reducing regional imbalances, assure a more equitable distribution of national income and wealth. Micro, Small and Medium Enterprises (MSMEs) as ancillary units complement large industries and this sector contributes immensely to the socio-economic development of the country. Khadi is the glorious legacy of our National Freedom Movement and the Father of the Nation. Khadi and Village Industries (KVI) are the two national heritages of India. One of the most important aspects of KVI in the Indian economy is that it generates employment at very low per capita investment. The Ministry of Micro, Small and Medium Enterprises (MSME) in collaboration with the concerned Ministries/Departments, State Governments and other stakeholders by providing support to existing enterprises and encouraging new enterprises, will support the growth and development of the MSME sector including Khadi, Village Industries and Coir Industries. Along with the activities of Micro, Small and Medium Enterprises, the world market has also changed a lot. Today, for businesses to sustain, dynamism and entrepreneurship must continue to function to their full potential. We have seen in the past record of MSME development that, India has been able to achieve high growth of MSMEs in the country, with more emphasis on MSME Entrepreneurship Development programmed.