They overcame difficulties MSMEs have had difficulty accessing large markets for various reasons, such as lack of adequate capital, inadequate use of marketing tools, and unawareness of the more general economic environment. MSMEs did not scale the business to request access in the local and global market. The Ministry of MSME has always elevated and facilitated MSMEs by transforming them into a digitally empowered community. MSME Databank net portal makes it easy to get online Census of MSMEs in India.
Access to Finance The overall MSME credit infrastructure has several bottlenecks; long enforcement process, high rates, collateral requirements, delay in payments. Lack of reasonable access to funds and immediate disruption of growth. However, business owners can apply for an MSME loan and use the funds to expand and grow their business. The introduction of the MSME Databank enables the monitoring of various loan plans and policies structured specifically for MSMEs so that the government can transfer benefits directly to those small business owners.
Quality Human Resources They overcame difficulties If your goal is to run a scalable business, you need to build a strong team of experienced professionals who are willing to stay with the company for a long time. Hardly a cadequate MSME fails to put quality Human Resources on its growth agenda. These MSMEs often have good enough staff, making it difficult to allocate resources to work on long and medium-term projects.
Lack of Experience Using External Experts A good consultant or salesperson usually saves time and effort and helps back by bringing expertise and talent. However, most MSMEs depend on the capabilities of the core team’s founders. The standard-or-buy dilemma makes them feel better about doing things in-house with their employees. Often times, an in-house team may not have the necessary experience and knowledge, increasing time, effort and costs.
Over-reliance on Existing Customers Some companies stick with large or critical customers and let the business run on autopilot. However, this can limit their work and their ability to maximize their potential. This also poses a high risk of concentration, because overconfidence can be disastrous if clients drift away one day. Wherever possible, MSMEs should always look at their customers across sizes, geographies, and cease industries. They should still try to build brand equity and focus on adding new customers and retaining existing customers. Funding constraints hinder the use of marketing channels to build a strong sales funnel.
MSMEs are facing economic slowdown, rising raw material costs, tighter competition, etc. They faced various difficulties, but still they overcame these difficulties and survived They overcame difficulties.
However, the havoc wreaked by the pandemic lockdown has resulted in the longest sustained lockdown in India, posing a significant threat to the survival of many good-enough small-sized companies. Only these MSMEs will emerge as real winners if they can transform the way they do business quickly, precisely and cost-effectively, and demonstrate the reliability and confidence in meeting consumer needs efficiently.
