Challenges & Issues

Role of MSMEsChallenges & Issues

The MSME Act was enacted to provide enabling policy environment for promotion and development of the sector by way of defining MSMEs, putting in place a framework for developing and enhancing competitiveness of the MSME enterprises, ensuring flow of credit to the sector and paving the way for preference in Government procurement to products and services of the MSMEs, and address the issue of delayed payments. It also addresses the major challenges, relating to physical infrastructural bottlenecks, absence of formalization, technology adoption, capacity building, backward and forward linkages, lack of access to credit, risk capital, redressal of perennial problems of delayed payments, which are hindering the development of a conducive business environment for expansion of the sector. The government has been playing an important role to create a thriving entrepreneurial eco-system for a policy imperative for realizing the potential of the sector and ensuring sustainable growth of the sector.