MSMEs are a backbone of the Indian economy. Multiple new ventures
have been established within this sector that enables people from
different background to join and be a part of such an exciting business
sector. Since the time of the inception of the MSME Act in 2006,
many traditional small businesses have found their way into the
MSME ecosystem and have thus empowered many people within the
sector by providing job opportunities. There a special MSME policy
for the Indian states. It is very important to realize that the opportunity
provided by the sector is for the long haul. The Government of India
is very proactive in terms of the setting up of the Ministry of MSME
for the welfare and security of the MSME sector.
The recent covid pandemic had brought many a businesses to a
standstill. Too many people from different nook and corner of the
country lost their livelihoods and had to depend on financial sources
leading to extremely poor living standards. MSME is changing the face
of entrepreneurship in India. The level of participation is increasing due
to the favorable MSME policy set forth by the Ministry of MSME.
There are a lot of eyes set forth on the potential of the Indian MSMEs.
India is country with a majority of young working population that huge
demand in the outside world. The last 2 decade is full of multiple
examples of the infiltration of mega corporations in the Indian market.
This is good for the overall ecosystem as there is communication and
exchange of Ideas. The only downside is if Indian entrepreneurs do not
come to these outside quality standards then the local employees would
still keep on working for the foreign conglomerates that established their
foot on Indian soil.
It is extremely important to bring new MSME reforms and a major
chunk was achieved in the MSME policy 2022. The Government of India
in the recent budget session has brought about many changes and
solutions for the benefit of the MSME sector. It is imperative to have a
comprehensive MSME policy for the welfare of Indian states.
For more information: https://smeventure.com/skill-development-and-rural-activities-lead-to-msme-growth/
In the light of the vision and objectives, specific action areas which
need deliberations for a national policy to guide, motivate, and
handhold states. Whereas intergovernmental actions define potential
actions, the sectoral issues provide scope of work in respective areas to
be taken up by various stakeholders. These are:
1. Skill development
2. Knowledge management.
3. Development of MSME code.
4. Technology upgradation
5. Access to Finance/Financial Assistance for MSMEs
6. Intergovernmental Roles & Responsibility
7. Legislation and Regulatory Framework for MSMEs in India
STATE GOVERNMENT Roles :
(i) Development of State Policy on MSME in line with the National
Policy on MSME.
(ii) Measures for encouraging enterprises to register and providing
convenient and
easy mechanism for regulatory compliances.
(iii) Creation and activation of State MSME Facilitation Councils (MFCs)
or
Development or Promotion Council.
(iv) Identify focus areas of MSME in the state of welfare covering cluster,
products, corridors R & D and technology hub.
(v) Implement and track measures for EoDB.
(vi) Organize state level stakeholder meets to showcase products,
processes and
marketing potential. The stakeholders should include MSMEs, Banks,
NBFCs, Informal Sector representatives, civil society, DICs, local
governments etc.
(vii) MFCs should document best practices and initiate award for
dissemination and
adaptation.
(viii) MFCs should regularly update the database for MSME related
information.
(ix) Help with value chains creating or linking the enterprises.
(x) Integrate the state portals with national level portals.
Government E-marketplace : GEM Policy for MSME.
Government e-marketplace primarily known as GeM is an initiative
taken by the government of India on 9th August 2016 to run its own e-
marketplace. It is a one-stop solution for all Central Government and
State Government Ministries, Departments, Public Sector Units (PSUs)
and affiliated bodies to facilitate easy procurement of consumer goods
and services.
Advantages of using GeM :
Advantages of GeM are two-fold one from the viewpoint of buyers and
another from the viewpoint of sellers which are as follows:
1. For Buyers
Provide transparency and ease of buying.
Offers rich listing of products for the individual categories of
goods/services.
Price Trends and Price Comparison from Multiple Suppliers.
Direct notifications to sellers.
Integrated Payment System.
User-friendly dashboard for monitoring supplies and payments.
Online grievance redressal mechanism for a quick resolution.
2. For Sellers
Access to National Public Procurement market
No charges or fee for getting registered
Special provisions and sections for start-ups, MSMEs and
Emporium products
Fully online, paperless and contactless platform
Brand application and brand approval process has been revamped
for sellers
Easy access to participate in bids/reverse auction
All sellers will be shown reasons for rejection
There are many other welfare & policies of MSME like the MSME tender
policy that have empowered the entrepreneurs within the MSME sector.
The MSME act has set for the principles for the MSME businesses in the
coming years. It is important for the people within the sector to
recognize the value that is within the ecosystem and try to harness it to
their full potential. It is very well known that many MSMEs that were
innovative found their mark and have today evolved into major public
listed company on the stock exchange.
Do watch: https://www.youtube.com/shorts/mxmhEv0xPgM
There are a lot of opportunities for the empowerment of the local
people and especially the rural areas to avail employment and kind of
be a part of the growing MSME culture. Majority of today’s new age
entrepreneurs are targeting to be a part of MSME ecosystem due to
favorable MSME policy. The majority of stakeholders are proactive in
encouraging more MSME participation and are helping out smaller
MSMEs by resolving their conflicts at the resource and financial level.
The known MSMEs that are recognized have special traits within them
that lead up to their success and it is imperative for newer MSMEs to
pay close attention to the activities and generate alpha for the own
businesses and a brighter future for MSMEs in India and it’s welfare.