MSME: The Sector You Cannot Understate For Indian Economy

When it comes to the elements of the Indian economy, you cannot overlook the role of the Micro, Small and Medium Enterprises (MSME) sector. This sector is a leading job creator and offers large-scale employment and industrialization of rural and backward areas.

Thus, it is critically important to keep a tab of day-to-day MSME news; this sector holds plenty of potentials and opportunities to offer.

Let’s see what all importance MSME Sector has:

Creates large-scale employment

Enterprises in this sector don’t need huge capital to start up new businesses. Moreover, it contributes to making several people earn their livelihood. Micro, Small, and Medium Enterprises create a vast opportunity for unemployed people. It means a business supported by small financial aid can help curb the major unemployment issue.

Contribute to economic stability

While MSME largely contributes to manufacturing, exports, and employment, other sectors are also making the most of it. Several MNCs buy semi-finished and auxiliary products from small enterprises like automobile spare parts. This sets a link between MSME and big companies that involves GST collection. That make for a significant amount of the government’s revenue.

Cheap labor and minimum overhead

Large-scale organizations have their own different set of challenges. One is the retention of human resources through an effective human resource management system.

Given the lesser numbers of labors, and not highly skilled ones, make human resources management is much cheaper.

Simple Management Structure

Medium and small enterprises can be started with minimum resources, within the control of the owner. So decision making gets easy and efficient at further stages of operations. On the other hand, when it's a large corporation, every department there requires specialists to manage the functional cores to keep complex organizational structure maintained. In small enterprises, owners are capable of handling everything on their own without heavily relying on external specialists.

Driving Mission “Make in India”

 The Make in India initiative by the Prime Minister of India has certainly been made easy with MSME. The government is focused on facelifting the MSME sector through many different platforms.   The financial institutions have been directed to lend more credit to enterprises in the MSME sector. So now and in the coming years, the Micro, Small, and the Medium Enterprises sector will be the key player in the Indian economy.

Conclusion

MSME is the backbone of the Indian economy. This sector has proven instrumental in the growth of the nation, leveraging exports, creating huge employment opportunities for the unskilled, fresh graduates, and the underemployed.

Hence, never miss even simple information about the MSME sector. To stay informed and updated, follow MSME News.