Micro Small and Medium Enterprises (MSMEs) for Inclusive Growth

Contents: Preface. 1. Globalization and Policy Support for MSMEs/Mohammed Javed Kalburgi and Shankare Gouda. 2. Corporate Social Responsibility (CSR) of Small and Medium Enterprises (SMEs)/Sasmita K. Maurya. 3. Credit Flow to MSMEs/Sandeep Poddar and Natika Jain. 4. Adivasis (Tribals) as Entrepreneurs/U.D. Jadhav. 5. Problems and Policy Measures to Help MSMEs/Kanchan Bhatia and Pooja Choubey. 6. Khadi and Village Industries/S.K. Khillare. 7. Sectoral Profiling of MSMEs/Sarika R. Lohana.8. Electronic Customer Relationship Management (e-CRM) in MSMEs/Mohan Rode and Poonam R. Lohana. Appendix: Recommendations of the Prime Minister’s Task Force on Micro, Small and Medium Enterprises (MSMEs), Government of India, January 2010. Index.

Micro, small and medium enterprises (MSMEs) are the backbone of the Indian economy. They provide immediate large-scale employment, ensure a more equitable distribution of the national income, and facilitate effective mobilisation of resources, both capital and labour, which might otherwise remain unutilised. The need to promote, modernise and reorganise these enterprises is paramount.

The needs, problems and potentials of these enterprises differ not just with the nature of activity, but also with size, geographical location and structure. While the sector in general lacks access to marketing and credit facilities, the problem is more pronounced for people belonging to scheduled castes (SCs)/scheduled tribes (STs) and minorities. Therefore, it is necessary to introduce social security, training and health insurance schemes for these vulnerable groups.

Though Government is providing several fiscal and monetary incentives for MSMEs, yet many of these enterprises suffer from lack of modern technology, skilled labour, inadequate bank credit, and an inefficient marketing network. All these constraints have resulted in a high cost structure placing this sector at a disadvantage vis-à-vis the large industries.