MSMEs In India Research Articles

Unleashing the potential of MSMEs in India: A strategic analysis

ABSTRACT Micro-, small, and medium-sized enterprises (MSMEs) are crucial to the Indian economy, significantly contributing to employment, industrial output, and regional development. As of March 2024, India hosts approximately 40 million MSMEs, predominantly micro-enterprises, which together account for around 30 percent of Gross Domestic Product and employ over 110 million people. This article explores the multifaceted role of MSMEs, examining their distribution across manufacturing, trade, and services sectors. The manufacturing segment, including textiles and food processing, employs about 31 percent of the MSME workforce, while trade and services sectors contribute 33 percent and 36 percent, respectively. The study reviews financing mechanisms, government policies, and human capital development, assessing the MSME sector’s resilience and adaptability in the face of economic disruptions and policy changes. Linear regression analysis reveals stability in manufacturing, fluctuations in trade, and consistent growth in the services and electricity sectors. Despite the MSME sector’s significant contributions, MSMEs face challenges, such as limited access to finance, regulatory complexity, and technological gaps. Opportunities for growth include digital transformation, export expansion, and enhanced government support. Addressing these challenges through improved credit facilities, technological support, regulatory reforms, and infrastructure development is essential for sustaining MSME growth and competitiveness. The World Congress on MSMEs underscores the need for comprehensive policy frameworks to support the MSME sector’s ongoing development and their role in driving economic progress and regional development.

OPPORTUNITIES AND CHALLENGES FOR MICRO, SMALL & MEDIUM ENTERPRISES (MSMES) IN INDIA: A DETAILED STUDY

Purpose: The purpose of the study is to review the existing opportunities and challenges of MSMEs in India mainly after implementation of GST. MSMEs make up more than 90% of all enterprises in most economies, are the main drivers of job growth, and contribute significantly to both industrial output and exports. MSMEs are essential to the broader industrial growth in India as well. When compared to the industrial sector as a whole, the MSME sector has had more expansion in recent years. Since then, 50% of MSMEs in India are owned by poor communities, it is possible to assess the significance of the MSME sector. MSMEs have contributed praiseworthy role in the conversion of the economy of India is rural economy to an industrialised one. The second largest employer in India is the MSME sector, right behind the agricultural sector. They are extensively spread out around the nation and generate a wide variety of goods and services to satisfy the demands of local, national, and multinational supply chain as well as local and worldwide marketplaces. To grow this industry and increase its competitiveness, the government has offered a number of plans and initiatives. Nevertheless, this industry has been contributing a large portion in India's economy but there are numerous obstacles that make the running of this sector incredibly challenging. The current study makes an effort to pinpoint key opportunities and restrictions for MSMEs in India. Design/Methodology/Approach: The study mainly includes the review of secondary data collected from various authors, journals, magazines, government’s websites and other various unpublished sources.Findings: The study makes an effort to draw attention to the different government initiatives created to support the MSME sector in India. The study showed that while the government is making every effort to support MSMEs through a variety of measures, there are still many restrictions and challenges that this industry must overcome.Future Scope of Research: As we all know, the Indian economy is still in its early stages, and the implementation of GST in India is only five years old. Therefore, there are many sectors and areas in the Indian economy that are not fully developed, and the development of these sectors in the near future will create more opportunities and challenges for MSMEs.

Need for ESG compliance in Agri MSMEs in India

Need for ESG compliance in Agri MSMEs in India

SKILL MANAGEMENT IMPACT IN INDIAN MSMES TOWARDS SUSTAINABLE CONSUMPTION AND PRODUCTION PATTERNS IN THE CONTEXT OF CSR PRACTICES

Upskilling is a prevailing trend in the workplace that provides employees with updated and advanced training programs and opportunities to enhance their skills and bridge skill gaps. Sustainable consumption and production patterns and green CSR practices are pervasive in Indian MSMEs to become a greener economy. The consumer demand for sustainable products is visible across the globe, creating opportunities for Indian MSMEs in the international marketplace. In light of this fact, the present research article aims to analyze the current gap in past studies concerning MSMEs by investigating the correlation between sustainability practices, specifically with respect to sustainable consumption and production patterns, green CSR initiatives, and the performance of MSMEs. This study aims to examine various viewpoints on MSMEs' sustainable business practices, which are a) how sustainable consumption impacts the efficiency of MSMEs, b) the influence of sustainable production patterns on MSMEs' performance, and c) the impact on the efficiency of MSMEs' operations as a result of CSR activities.A self-structured questionnaire has been sent to the MSMEs' owners, managers, directors, and administrative officers through email to conduct the research work. In addition, a structural Equation Model (SEM) was used to sample 130 Indian MSMEs. The study's main findings are that the sustainable consumption and production patterns of skill-based CSR practices impact the efficiency of MSMEs in India. It has also been discovered that their sustainable practices are generating global market opportunities. This study has important implications for MSME owners and policymakers because applying sustainable consumption and production patterns and implementing skill-based CSR practices as sustainable strategies will create a greener economy and positively impact the performance of MSMEs.

Antecedents of Export Performance of Food and Beverages MSMEs in India

The Food and Beverages (F&B) sector has evolved as a sunrise sector of India. It is gearing-up its business at a rapid rate after the pandemic shocks. India is one of the largest foods producing nation in the world but due to its perishable nature the surplus food articles are converted to processed food and beverages products and exported to other countries. Even though the sector has good prospects to grow and attract foreign investment but most of the enterprises are micro, small, and medium. However, MSMEs are performing better in food and beverages exports. The present study has empirically investigated the export antecedents of India’s F&B MSMEs by using Random Effects Tobit Model in a firm level dataset. The study also analyzed the region-wise F&B export performance. The findings reveal that F&B industry is highly labour-intensive which requires more capital investment in physical assets like plant and machinery, cold storage facilities, warehousing, packing and packaging centers and so on. To stimulate the export performance, the F&B firms require to enhance the labour productivity by investing on the employees’ welfare and training activities as well as create awareness among them about the rules and regulations of WTO and FAO like food standard and safety regulations and packing and packaging standards etc. The region-wise analysis indicates that in F&B exports the Northern and Eastern regions have performed better whereas the North-Eastern region is more oriented towards the domestic market rather than the export market.

MSMEs in India: Growth and challenges

MSMEs in India: Growth and challenges

Unveiling the role of entrepreneurial intention and training on firm performance: empirical evidence from MSMEs in India

Unveiling the role of entrepreneurial intention and training on firm performance: empirical evidence from MSMEs in India

A study on recent developments of MSMES in India

A study on recent developments of MSMES in India

Navigating the Obstacles: A Systematic Review of Challenges Faced by MSMEs in India

Navigating the Obstacles: A Systematic Review of Challenges Faced by MSMEs in India

Unveiling the role of entrepreneurial intention and training on firm performance: Empirical evidence from MSMEs in India

Unveiling the role of entrepreneurial intention and training on firm performance: Empirical evidence from MSMEs in India

COVID-19 and MSMEs in India: An Analysis of Pandemic Shock and Policy Response

The unprecedented outbreak of Covid-19 pandemic has had a negative effect on the growth and performance of enterprises in India and around the world. Out of all, the MSMEs (Micro, Small and Medium Enterprises) were significantly impacted. The Covid-19 has further exacerbated the situation in the MSME sector, which was already suffering severe hardship as a result of the prolonged economic slowdown, demonetization and GST. The paper examines the challenges faced by MSMEs during Covid-19. The paper further assesses the initiatives undertaken by the government for promoting the growth and performance of MSMEs. At the end, the paper provides suggestions for improving the operational performance of MSMEs.

Role of Digitalization in the Growth of MSMEs in India: Opportunities and Challenges

Digital technology has enormous potential benefits for the MSME sector in India. The business-focused digital environment has seen a substantial transition recently. A number of new elements have emerged that could help define the limits of a strong digital ecosystem. Problems arise when trying to address the complex and heterogeneous MSME sector, which is dominated by small businesses with varying degrees of digital readiness. An incentive for businesses to completely adopt digital technology would be to provide an ecosystem with end-to-end solutions for operations, management, payments, skilling, and even easy information sources. The global Covid-19 outbreak has forced businesses, including MSMEs, to digitally upgrade their operational procedures. This paper makes the argument that we should consider those factors that offer opportunities to deepen our understanding of MSMEs' attempts to digitise their operations. The government's policies on widespread social restrictions and physical segregation have a significant negative impact on MSMEs'operations. The development of business centres utilising the digital transformation paradigm may help MSMEs to go digital.

Model-Selection Inference for Causal Impact of Clusters and Collaboration on MSMEs in India.

Do firms benefit more from agglomeration-based spillovers than the technical know-how obtained through inter-firm collaboration? Quantifying the relative value of the industrial policy of cluster development vis-à-vis firm's internal decision of collaboration can be valuable for policy-makers and entrepreneurs. I observe the universe of Indian MSMEs inside an industrial cluster (Treatment Group 1), those in collaboration for technical know-how (Treatment Group 2) and those outside clusters with no collaboration (Control Group). Conventional econometric methods to identify the treatment effects would suffer from selection bias and misspecification of the model. I use two data-driven, model-selection methods, developed by (Belloni, A., Chernozhukov, V., and Hansen, C. (2013). Inference on treatment e ects after selection among high-dimensional controls. Review of Economic Studies, 81(2):608 650.) and (Chernozhukov, V., Hansen, C., and Spindler, M. (2015). Post selection and post regulariza- tion inference in linear models with many controls and instruments. American Economic Review, 105(5):486 490.), to estimate the causal impact of the treatments on GVA of firms. The results suggest that ATE of cluster and collaboration is nearly equal at 30%. I conclude by offering policy implications.

The impact of Covid-19 containment lockdowns on MSMEs in India and resilience of exporting firms

This study uses data from a survey of micro, small, and medium enterprises in India to document the impact of Covid-19 containment lockdowns on firms, their responses, and adaptation strategies. We find that the profits and sales declined substantially for the majority of firms. Temporary closures, pay cuts, and temporary lay-offs were the key measures utilized by firms to cope with the shock. Firms did not have adequate liquidity to last beyond six months, albeit the majority expected the pandemic to be over within that period. Micro-enterprises were the most fragile. Using a retrospective panel and matching-based difference-in-differences strategy, we show that exporting firms were able to cushion themselves from the domestic market contractions resulting from the lockdown.

An Analytical Study of Burgeoning Post Covid Business Strategies for Reviving MSMES in India- with Reference to Delhi NCR

An Analytical Study of Burgeoning Post Covid Business Strategies for Reviving MSMES in India- with Reference to Delhi NCR

Determinants of the success of MSMEs in India: a policy vs. technology perspective

Determinants of the success of MSMEs in India: a policy vs. technology perspective

Development of MSMEs in India: challenges vs. Govt policies

Development of MSMEs in India: challenges vs. Govt policies

Determinants of the success of MSMEs in India: a policy vs. technology perspective

Determinants of the success of MSMEs in India: a policy vs. technology perspective

Development of MSMEs in India: challenges vs. Govt policies

Development of MSMEs in India: challenges vs. Govt policies

Moderating Role of Commercial Capabilities on Firm Performance Through Innovative Capability in Manufacturing Msmes

Purpose: Manufacturing MSMEs are in need to identify new ideas and work on ideas to implement them into their process to create new or improved products. Innovation management is a prerequisite and has a direct effect on a firm’s performance. Innovation allows firms to secure a market position and create value by making new customers. This study attempts to find the relationship between innovative capabilities and the firm’s performance in manufacturing MSMEs and how the commercial capabilities of the firm moderate the relationship. Theoretical Framework: Several studies have been reviewed to identify the relationship between innovation, firm performance, and commercial capabilities. A necessitated gap in the literature was identified and the factors were established. Design/Methodology/approach: This study was done among the manufacturing MSMEs in India. A structured questionnaire was circulated to the top performing MSMEs in every state of India and the responses were collected through email. A total of 384 responses were collected at the end of the data collection period. The scale of the measure was adopted and it has measured reliability and validity scores to get to be used in this study. Findings: The results of the study showed that the innovative capability of manufacturing MSMEs has a significant positive relationship with the firm’s performance. The moderation analysis showed that the manufacturing capability and marketing capability significantly moderate the relationship between innovative capability and a firm’s performance. Research, Practical & Social Implications: This study provides the managers of the manufacturing MSMEs to rely on investment in innovation however they are moderately influenced by networking, R&D, and commercial capabilities of the business. Originality/Value: Contributes to the existing body of knowledge theoretically and empirically by including diverse demographic respondents the results obtained were unique and universally applicable.