A Study on Key Challenges Confronting Micro, Small, and Medium Enterprisesin India

Abstract

Micro, Small, and Medium Enterprises (MSMEs) playing a crucial role in the upliftment of poverty in India. MSMEs contribute more than 29 percent to the Gross Domestic Product (GDP0 and are responsible for 50 percent of the country's total exports, but these days these are facing different constraints for their smooth functioning like financial, marketing, operational and technological. For this study primary as well as secondary data was collected from different MSMEs in India. Major obstacles that prevent MSMEs from taking advantage of government initiatives include difficult application processes, low awareness, and insufficient support networks. Adherence to financial reporting guidelines promotes openness and aids companies in showcasing their financial well-being to investors, lenders, and stakeholders. The impediment to enhancing productivity and competitiveness is the high expense of adopting new technologies, along with low technical understanding and limited awareness. By removing these obstacles, the government can help MSMEs operate more effectively, increase their GDP contribution, and create job opportunities.