The MSME concept is getting a lot of attention and influence in the Indian economy these days. It serves as a stimulant for the Indian economy and is well suited to the country’s dynamic structure.
During times of disaster, such as COVID 19, MSMEs in India have proved their value in the economy and assisted in maintaining the equilibrium. These owners are in charge of the country, but they are not at the forefront of events.
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Backstage, there are always individuals working to ensure that the show is good and running smoothly at all times. Those are the people that choose to work even if it’s 24 hours a day, 7 days a week, even if they have a personal event. They are frequently referred to as entrepreneurs.
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What are MSMEs?
MSME stands for Micro, Small, and Medium Enterprise which was inaugurated by the Indian Government in agreement with the Micro, Small & Medium Enterprises Development Act, 2006. MSME is managed under the Ministry of MSME. The micro, small and medium enterprises are entities that are engaged in the production, manufacturing and preservation of goods and commodities.
The MSME sector is deemed to be the backbone of the economy of India because it has contributed significantly to the social as well as economical growth of the country. It helps in the generation of employment opportunities in the backward, rustic regions. According to the official data of the government dated 31st Aug 2021, there are approximately 6.3 crore MSMEs present in India.
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Contribution of MSMEs
MSMEs are a stronghold for the economy. Their contribution is undeniable. Their progress has resulted in the rise of the country’s socioeconomic sector and the alleviation of poverty among the poor.
They are located in our communities, sometimes even next door, and they continue to work even if they are not recognised. That is what sustains the country. MSMEs have created jobs for a large number of people in the country. We are aware of the country’s rapid population growth.
We are aware of the country’s rapidly growing population and the issues that this brings, one of which is unemployment. MSMEs play a critical role in recruiting individuals and establishing work prospects for them, something that even giant corporations cannot achieve.
MSMEs have worked at a deeper level, reaching out to a large number of individuals in rural areas and improving their circumstances. MSME is associated with a higher rate of economic growth, constructing an inclusive and enduring population in a variety of ways, including promoting low-cost non-agricultural livelihoods, unbiased regional development, gender equality in society, and ecologically continuous up growth, and, above all, protecting against deflation, which MSME has always demonstrated.
According to Ministry of MSMEs estimates, the sector employs around 100 million people across the country, with over 46 million units spread across the country. MSMEs have a significant impact on the country’s GDP.
The dairy processing unit in India is an example. The unit purchases over 25000 litres of milk per day from local villagers to make cheese and two other products, which it then exports. These dairy products generate significant revenue and profit, ranging from 20% to 25%.
Additionally, the increased economic activity of MSMEs’ employees and suppliers has a substantial multiplier effect in the wider economy. Aside from providing a wide range of services, the MSME sector manufactures nearly 6,000 products ranging from traditional to high-tech. MSMEs are estimated to employ half of the world’s workforce.
It promotes long-term growth and poverty alleviation in developing countries like India. It also aids in resource allocation efficiency by implementing labour-intensive production processes, especially in countries like India where labour is plentiful but capital is scarce.
The expansion of MSMEs demonstrates that there is a high level of entrepreneurial morale in the economy, with entrepreneurs constantly inspired to accomplish something good for the country. MSMEs have improved their exploitation of domestic resources over time and have generated high-quality products and services. It contributes to the country’s industrial expansion and accounts for more than 90% of India’s industrial units, which has been steadily rising since its inception.
There are numerous success tales of people who have managed to run their small businesses despite all odds. Every small business, every startup, and even those secondhand stores on social media contribute to a country’s economic progress.
Prominent Features of MSMEs
The prominent features of MSMEs in India are very diverse. These are:
- MSMEs work to improve the lives of employees. They assist them by giving jobs, loans, and other services.
- MSMEs provide banks with financing assistance.
- They encourage the growth of entrepreneurs and upgrade their skills by ascertaining specialized training centres.
- They are in favour of enhancing developmental technology, broadening infrastructure, and modernizing the sector as well.
- MSMEs are devoted to assisting in attaining access to domestic and international markets.
- They have quality certification programmes and modern testing capabilities.
- MSMEs also support product creation, concept aptitude, engagement, and packaging, according to recent trends.
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Opportunities in MSMEs
The opportunities in MSMEs are enormous due to the following factors:
- Export promotion for Indian products
- Funding through finance and subsidies
- Governmental promotion and support
- Growth in demand in the market
- Less Capital required
- Manpower Training
- Project Profiles
- Raw Material and Machinery Procurement
- Tools and Testing support.
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MSME Viral Video
An MSME viral video named ” A tribute to MSMEs ” by MSMEx depicts the daily challenges of small business owners. They are omnipresent, and we perceive them as flawless people who appear to have it all together, yet their faces conceal their troubles. These proprietors take everyone with them.
On their way to success, they don’t leave anyone behind. But don’t we assume these folks will have a lot of success, nice money, and a comfortable life? Is that, however, all there is to it? No. Their expressions conceal the difficulties they confront. Even if they don’t make a lot of money, they make sure that the salary is attributed to everyone on their team.
The film accurately shows the plight of these small company owners. The stark black and white presentation conveys a lot, and the amazing narrative makes us all emotional about their progress.
The video encourages us all to honour them and to recognise that they are working tirelessly for their country, although in silence. Their tribulations are frequently unheard of. They make mistakes along the way, but they always come back stronger.
Watch the viral MSME video here –
Only self-sufficiency in a country like India can be a solution for the depreciation of the Indian rupee. If it is established in impoverished areas, it will provide a consistent development to society and will be very useful in removing regional inequities. If their contribution is to be sustained, their individuality must be cultivated openly.
MSMEs contribution to the country’s social and economic development does not need any introduction. The sector has been positively benefiting the nation as well as the people. Their growth and their individuality needs to be ascertained so that they can continue contributing to the positive growth of the nation.