India has tremendous potential to push growth and generate employment. The government’s priority is for an integrated development of the rural and agro based enterprises along with the urban based enterprises. The target is to increase MSME’s present share of 29 percent of GDP to 50 percent in next five years and raise its export contribution from 49 percent to 60 percent. To achieve these targets logistics, power and capital cost will need to be reduced. Micro and Small scale Industries are labour intensive and have huge scope for employment generation.
The speciality of MSMEs is in their small size and flexibility in operation.
Very often it is seen that the entrepreneur prefers to invest the limited but requisite amount of finance from their own funds. This provides the ease but at the same time can also lead to getting the self-earnings stuck in the business cycle and can become risky.
It is therefore essential that financial need has to be met with the support of institutional funding, and ensuring cash flow availability on a periodical basis. Proper planning and judgemental aptitude would help the small businessmen.
Like every commercial venture, the MSME also calls for the specific and customized business model based on its business needs and objectives and customers’ requirements.
The units which are backed up by such specific business model would certainly be successful. The premise of incorporating and inception of MSME and Start up needs to be contributing to the business as well as employment. The value addition factor based on the uniqueness is essential for the success of such business.
The service delivery of MSMEs and Start up should not only be customer centric and focused on quality. The success factor of MSME lies in such determined business resolution and result orientation.
The entrepreneur needs to achieve these aspects by creating the customer focused work culture, imbibe it as the way of working with zero dilution and with the determination of self as well as with involvement of the limited number of employees. One should remember that there is no substitute to determination and commitment at workplace in such units. Moreover, all the critical aspects related MSME should be measureable and should be timely monitored.
In order to make every MSME and Start up customer-centric, customer – focused and service driven, quality based work culture is always helpful. The limited number of employees and the small size of such units plays vital role in making this happen. Most of the MSMEs are directly driven by the entrepreneurs or owners and their direct involvement is also found supportive to create and implement such requisite work culture and it can become the success factor.
The government is in the process of developing a digital MSME portal which will work as a virtual meeting place for all stakeholders of the sector. For the over 75 lakh MSMEs currently registered, this will provide a platform where they can interact globally to fulfil their requirements for funding, knowledge, technology, skilling and marketing, making them more competitive and integrated with the global value chain. There is need to enhance manufacturing competitiveness of entrepreneurs, the process is on for opening new 135 new Tool Rooms & Technology centres to develop the skill of the entrepreneurs.Click Here to Share This on Whatsapp
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