The MSME full form is the Micro, Small, and Medium Enterprise (MSME). The MSMEs is the apex body responsible for the implementation of enterprise legislation, regulation, and laws in India. However, it mainly concerns small, micro, and medium enterprises. The MSMEs help in providing employment opportunities with low capital cost, assist in the industrialization of rural and backward areas, and reduce regional imbalances. Thus, assuring equitable distribution of the national income and wealth. It is a Government of India division that assists in the socio-economic development of the country.
MSME works as an apex body responsible for small, micro, and medium enterprises. It is an institution of the Indian government. The features of the MSME are as follows:
- Provides room for employment for several workers and artisans
- Promote entrepreneurship and help in developing specialized skills
- Moreover, they assist in the development of modernized technology and infrastructure
- Helps in the growth of the domestic and international markets
Over the years MSME has gone through several challenges. Some of the challenges faced by MSMEs are as follows:
- Financial challenges. Most proprietors have difficulty in getting loans from banks due to a lack of collateral and a steady stream of income.
- Heavy dependence on informal workers who lack the specialized skills and expertise
- Comparatively behind their counterparts in other countries
- Lack of entrepreneurial, managerial, and marketing skills for the growth of the sector
- A lack of technological awareness can hinder growth.