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Unemployment and low GDP rate has given rise to a new wave of Micro, Small and Medium Enterprises namely MSMEs. They are small sized entities defined in terms of their investment. They help  in the growth of economy by providing employment to a large number of people who may dream of opening and running their own businesses. Also MSMEs contribute to exports,  manufacturing sector production and extending support to bigger industries by supplying labor, raw material, basic goods, finished parts and components, etc. 

What’s the Indian lookout  of MSMEs?

MSME has emerged as the most dynamic and vibrant sector of developing countries like India. It not only helps in the economic progress of rural areas but also provides surplus employment opportunities within a substantial lower capital cost in comparison to large industries. This sector solicits to empower the marginalised community encompassing on people’s skills and agencies like pottery, crafting, selling  foods and luxurious items and much more. MSMEs greatly contribute to the robust GDP of nations like India and ensures the smooth progress and growth of the domestic industrial units. Owing to its vast potentialities, the government of India is now encouraging the growth of MSME sector with advanced skill training facilities. The government is also providing financial aid via Commercial Banks, RRBs, Small Finance Banks, Cooperative Banks, MFIs and NBFCs like www.prestloans.com. Prosperity of this sector also reduces dependence on foreign items as our domestic market is quite capable of producing the same items with reduced expenditure costs. Along with that the organizational operations, MSME is not so complex and can be easily understood even by a person of average knowledge. 

Key focus areas of MSMEs

Given the current economic scenario, some of the key national imperatives by MSMEs to propel India into the next wave of growth include:

• Creating employment opportunities for special segments such as women workforce, physically challenged, traditional industries, etc.

• Financial inclusive growth to the lower income class across rural, rurban and urban economies 

• Developing capabilities for reducing import burden and dependence on overseas for local demand fulfillment

• Enhancing and widening export capabilities and becoming globally competitive, developing global technologies and innovation

• ‘Make in India’ – Ease of doing business 

• Developing infrastructure for improving standards of living for wider population as well as for improving business environment and capabilities. 

How MSMEs can uplift the employment rate?

From the perspective of employment generation, it is critical to nurture and promote entrepreneurship by creating a suitable business environment. Typically, entrepreneurship tends to be innovation-driven and can also help generate solutions to India’s most feared social and economic problems, such as skill development, affordable health care, energy dependence, urbanisation, and financial inclusion. Entrepreneurship-led economic growth is more robust and inclusive pace. MSME largely comprise first-generation entrepreneurs, thereby, drastically increasing the employment rate in the rural as well as lower urban areas. India needs an entrepreneurial ecosystem that encourages innovative startups. MSMEs and startups needs capital investment to grow their business which is provided by Commercial Banks, RRBs, Small Finance Banks, Cooperative Banks, MFIs and NBFCs like www.prestloans.com. The new age digital lenders like www.prestloans.com provides business loans, SME loans, Agricultural loans and Bill Financing etc. with the added advantage of varying time periods- Short-term Loans and Long-term Loans. 

Concluding Remarks

Government and many other new age companies like Prest Loans are contributing in building up of a model for MSME sector, which targets to help small business owners to get loans even if they have a negative CIBIL score, do not have the means to provide a collateral or need loan to be issued on a diminuitive time period.  The focus is on a new wave of emerging opportunities and India’s policies which aim at covering the entire lifeycle of MSMEs for a growing, healthier and fruitful MSME sector. Thus, MSMEs are paving a new path for small business owners.

SOURCES

https://bit.ly/2kxfbRW

https://bit.ly/2JdPfbV 

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