“A STUDY ON CHALLANGES FACED BY MSME WITH

SPECIAL REFERENCE TO KANJIRAPPUZHA

GRAMAPANJAYATH”

PROJECT REPORT
SUBMITTED TO UNIVERSITY OF CALICUT IN PARTIAL
FULFILLMENT OF THE REQUIREMENT FOR THE
AWARD OF THE DEGREE OF

BACHELOR OF COMMERCE (FINANCE)

SUBMITTED BY

MAHAMOOD SHERIEF C
Reg.No.EYAVBCM101
UNDER THE GUIDANCE OF

Ms. RAMYAKRISHNA

ASSISTANT PROFESSOR

PG DEPARTMENT OF COMMERCE AND MANAGEMENT STUDIES

NAJATH ARTS AND SCIENCE COLLEGE

NELLIPUZHA, MANNARKKAD

2023-24
 DECLARATION

I MAHAMOOD SHEIEF C hereby declare that the project work titled “A STUDY
ON CHALLANGES FACED BY MSME WITH SPECIAL
REFERENCE TO KANJIRAPPUZHA GRAMAPANJAYATH” is a
record of original work done by me under the guidance of Assistant professor Ms.
RAMYAKRISHNA, in partial fulfillment of the requirement of the award of the Degree
of Bachelor Of Commerce (Finance) of University Of Calicut. I also declare that this
project has not been submitted by me fully or partially for the award of any degree,
diploma, title or recognition earlier.

PLACE: MANNARKKAD

DATE:

MAHAMOOD SHERIEF C
(EYAVBCM101)
 ACKNOWLEDGEMENT

First and foremost, I express my sincere gratitude to Almighty God for making
me capable to do the work successfully.

I am proudly thankful to Professor M. MUHAMMED ALI, Principal of

Najath arts and Science College, Mannarkkad for giving me an opportunity to pursue
Bachelor of Commerce (Finance) Degree Course in the prestigious Institution and to
undertake this project work.

I extremely thankful to Assistant professor, Mr. MOHAMMED ASLAM.K, Head

of Department of Commerce and Management studies for his support and the
encouragement for the Completion of my project.

I feel great pleasure in acknowledging my heartfelt thanks to Assistant

Professor Ms. RAMYAKRISHNA, for her expertise and valuable guidance in
completion of the report Successfully. I also express my profound thanks to all the
staff members in the Department.

I also express my sincere thanks to my friends and family members who are
helped in Completing the project.

Above all, I am expressing my sincere gratitude to the almighty for his

blessing that enabled me to successfully complete the project.

MAHAMOOD SHERIEF C
(EYAVBCM101)
 TABLE OF CONTENT

CHAPTER CONTENTS PAGE NO.

1 INTRODUCTION 1-4
2 REVIEW OF LITERATURE 5-9
3 THEORETICAL FRAMEWORK 10-15
4 DATA ANALYSIS AND 16-34
INTERPRETATION
5 SUMMARY, FINDINGS, SUGGESTIONS 35-37
AND CONCLUSION
APPENDIX
BIBLIOGRAPHY
 LIST OF TABLES
TABLE TITLE PAGE
NO. NO.
1 age of respondents 16
2 gender of respondents 17
3 no of members in the family 18
4 monthly earnings of MSME entrepreneurs 19
5 education qualification of MSME entrepreneurs 20
6 factors which lead to select MSME 21
7 methods by MSME’s attract the buyer 22
8 frequency of purchasing habit of MSME’s 23
9 type of customers the traders prefer 24
10 whether traders face any competition or threat fromlarge 25
companies
11 having allowances or subsidies from local bodies 26
12 current satisfaction level of MSME entrepreneurs 27
13 any threat from authorities like panchayath or 28
municipalities like wise
14 difficulties to purchase product from wholesale market 29
15 strategies used by MSMEs to increase their product 30
coverage
16 affects of online trading on seasonal sales 31
17 affects of tax in sale of retailers 32
18 sales of MSMEs for the last 5 years 33
19 capital arrangement of entrepreneurs 34
 LIST OF CHARTS
TABLE TITLE PAGE
NO. NO.
1 age of respondents 16
2 gender of respondents 17
3 no of members in the family 18
4 monthly earnings of MSME entrepreneurs 19
5 education qualification of MSME entrepreneurs 20
6 factors which lead to select MSME 21
7 methods by MSME’s attract the buyer 22
8 frequency of purchasing habit of MSME’s 23
9 type of customers the traders prefer 24
10 whether traders face any competition or threat fromlarge 25
companies
11 having allowances or subsidies from local bodies 26

12 current satisfaction level of MSME entrepreneurs 27

13 any threat from authorities like panchayath or 28
municipalities like wise
14 difficulties to purchase product from wholesale market 29
15 strategies used by MSMEs to increase their product 30
coverage
16 affects of online trading on seasonal sales 31

17 affects of tax in sale of retailers 32

18 sales of MSMEs for the last 5 years 33
19 capital arrangement of entrepreneurs 34
 PROJECT REPORT 2023 - 2024

CHAPTER I
 PROJECT REPORT 2023 - 2024

INTRODUCTION

1.1 INTRODUCTION
Micro, Small and Medium Enterprises (MSME) sector has emerged as a highly vibrant
and dynamic sector of the Indian economy over the last five decades. (Murthy, 2016).
The MSME also play an important role in the development of the economy with their
effective, efficient, flexible and innovative entrepreneurial spirit. (Dec 2014). The
MSME sector contributes notably to the country’s overall industrial production output,
employment and exports. It is recognized with generating the maximum employment
growth as well as accounting for a major share of industrial production and exports.
They have distinctive advantages due to their size and they required low investment.
They have relatively high capital-labour ratio and they require a minimum gestation
period. They try to capture and focus smaller markets; they make sure a more fair
distribution of national income. They make possible an effective utilize ion of capital
and skill resources and they motivate the growth of industrial entrepreneurship. The
MSME sector in India is vast heterogeneous in terms of the size, variety of product and
services and level of technology.
This sector is large contributes to the socioeconomic
development of the country. The MSME sector is an important pillar of Indian economy
as it contributes greatly to growth of Indian economy with a vast network of around 30
million units, creating employment of about 70 million, manufacturing more than 6000
products, contributing about 45% to manufacturing output and about 40% of exports,
directly and indirectly. This sector even assumes greater importance now as the country
moves towards a faster and inclusive growth agenda.
Moreover, it is the MSME sector, which can help realize the target of proposed
National Manufacturing Policy of raising the share of manufacturing sector in GDP
from 16% at present to 25% by the end of 2022. (Planning Commission)1. The objective
of paper is to find status of performance of MSMEs in India also to examine the major
challenges faced by MSMEs for inclusive growth and to find the opportunities available
for development of this sector.

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1.2 STATEMENT OF THE PROBLEM

The title of research is A study on challenges faced by msme with special reference to
Kanjirappuzha gramapanjayath Kerala, high on social indices and low on economic
indices, has been an enigma to scholars. Kerala economy is transforming into a service
economy with high inward remittance and skilled technical human resources.
Development of more micro, medium and small-scale enterprises by fortifying the
skilled human capital and promoting investments including domestic as well as foreign
in all the sectors will promote the total economic development of the State through
employment generation and export oriented business.
1.3 OBJECTIVES OF THE STUDY

1. To know the problems faced by MSME’s in Kanjirappuzha Gramapanjayath

2. To explore the opportunities available to msmes in India, including government
support, innovation, and export potential.
3. To identify the reason to start MSMEs
4. To know the source of money for the investment

1.4 SCOPE OF STUDY

This study is mainly forced on “The problems faced by MSMEs special reference to
Kanjirappuzha Grama Panchayath”. It helps to know the various problems faced by
MSMEs and how they are satisfying their customers. This study is also helpful to
identify the problems faced from government authority and also attitude of customers
towards MSMEs. This study is important because of MSMEs are an essential part of
our economy.

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1.5 RESEARCH METHODOLOGY

Research methodology is a way to systematically solve research problem. It is important

for researcher goes about their work of describing, explaining and predicting
phenomenon are called methodology. It may be understood as science of studying how
research is done scientifically .It is the scientific steps that are generally adopted by the
researcher to study his problems with the logic behind them
1.5.1 RESEARCH DESIGN

This study is based on descriptive research method which is concerned with the
descriptive of a group. The descriptive in such a way that respondents is able to
understand clearly what the researcher want and provides distinct information to
measure the data
1.5.2 POPULATION
The population include MSMEs of Kanjirappuzha Grama Panchayath.
1.5.3 SAMPLE UNIT
MSMEs of Kanjirappuzha Grama Panchayath
1.5.4 SAMPLE TECHNIQUE
It is a procedure for selecting sample member from the population here convenience
sampling is used as a sampling method
1.5.5 SAMPLE SIZE
The study sample contributed 50 respondent in the research area.

1.6 METHOD OF COLLECTION OF DATA

SOURCE OF DATA
 Primary data:-
The primary data were collected through questionnaire is made as simple and easy to
understand.
 Secondary data:-
The secondary data were collected from various websites, various publications and
text.

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 PROJECT REPORT 2023 - 2024

1.7 TOOLS AND TECHNIQUES FOR DATA ANALYSIS AND

INTERPRETATION
In this study tables, charts, bar diagrams and pie diagrams are used to represent the
collected data.
1.8 PERIOD OF STUDY
Duration of the study is 21 days

1.9 LIMITATIONS

1. There is chance of occurring personal bias.

2. It is difficult to draw a conclusion on this small sample.
3. The time for study is limited

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 PROJECT REPORT 2023 - 2024

CHAPTER II
 PROJECT REPORT 2023 - 2024

REVIEW OF LITERATURE

Kristin Hallberg, (2000) Governments in both industrialized and developing countries

provide a wide variety of programs to assist small- and medium-scale enterprises
(SMEs). Despite the success of SME strategies in a few countries, the majority of
developing countries have found that the impact of their SME development programs
on enterprise performance has been less than satisfactory.
Krishna Kumar (2003) He views that In India foreign collaborations have generally
been to have the technological transfer which involves high cost. It is important to
understand the MSME’s single handed cannot afford this cost, however if a group of
MSME’s of similar nature of work come together the burden of the foreign
collaborations can be shared effectively.
Rajeev (2009) studied the effects of globalization on Micro, Small and Medium
Enterprises (MSMEs) during pre and post liberalization from 1973-74 to 2008-09. They
used four economic parameters namely number of units, production, employment and
export and interpreted study results based on Annual Average Growth Rate (AAGR)
calculation. AAGR in pre liberalization period (1973-74 to 1989-90) was higher in all
selected parameters than that of post liberalization period (1991-92 to 2007-08). They
concluded that MSMEs failed to put up an impressive performance in post reform era.
Grimsholm & Poblete (2010) conducted a detailed qualitative study of external and
internal factors hampering the growth of Small and Medium Enterprises in Thailand. It
reproduced quite generalized results applicable to most of the south Asian countries
producing low cost, low value added and labour intensive products. Significant factors
hampering growth according to the study are lack of access to finance, competition,
barriers to trade, management competence, lack of skilled labour, low investment in
R&D and new technology.
Bhavani T.A. (2010) highlights the issue of quality employment generation by the SSIs
and negates the short term attitude of increasing the volume of employment generation
compromising with quality. The author argues that employment generation by the SSIs
may be high in quantitative term but very low in quality. Technological up gradation

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 PROJECT REPORT 2023 - 2024

would enable the small firms to create quality employment improving remuneration,
duration and skill. This structural shift may reduce the rate of employment generation
in the short run but would ensure high-income employment generation in the long run.
Subrahmanya Bala (2011) has probed the impact of globalization on the exports
potentials of the small enterprises. The study shows that share of SSI export in total
export has increased in protection period but remain more or less stagnated during the
liberalization period. However, the correlation co-efficient in liberalization period is
higher than that of protection period suggesting that the relationship between the total
export and SSI export has become stronger in liberalization period. This may be due to
the drastic change in composition of SSI export items from traditional to non-traditional
and growth in its contribution to total export through trading houses, export houses and
subcontracting relation with large enterprises. Thus, the current policy of increasing
competitiveness through infusion of improved technology, finance, and marketing
techniques should be emphasized.
Definition of Small-scale Industries Sector(2011) , units having investment of less
than Rs. 10 lakh were defined as small-scale industrial undertakings, while for ancillary
units, the investment limit was Rs. 15 lakh. Units with investment of less than Rs. 1
lakh are defined as tiny enterprises. In 1991 the investment limit for small-scale
industries was Rs. 60 lakh, for ancillary units Rs. 75 lakh, and for tiny enterprises Rs. 5
lakh. In 2000, the investment limit for SSI (small-scale industry) Was Rs. 1 crore, for
ancillary unit Rs. 1 crore and for tiny enterprise Rs. 25 lakh. Consequent to the
enactment of Micro, Small and Medium Enterprises Development (MSMED) Act,
2006, the small and medium sector has been defined as micro, small and medium.
Abdul Naser.V, (2013) critically evaluated the contributions made by the micro, small
and medium enterprises in the balanced growth of the Indian economy. The study says
that since 55% of the total enterprises operate in the rural areas they promote inclusive
growth and regional equity. They play a very important role in employment generation
and contribute a commendable portion to the GDP, industrial production and export of
the country. The paper also highlights the challenges faced by the sector and

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 PROJECT REPORT 2023 - 2024

Mehul Kapadia (2013) Every bit of capital investment is crucial for an SME. Seasonal
peaks are one of the greatest reasons for companies under-provisioning or over-
provisioning. This can later result in a heavy loss and idle resources. Whetheryou run a
full-fledged enterprise, a medium-sized business venture or even a smaller, relatively
newer business, updating business IT processes is a critical step in your enterprise life
cycle. In fact, some businesses even have to undergo multiple transformation phases.
Large enterprises have the capability and the resources to execute such transformations
smoothly, but SMEs face a significant challenge in doing so, given their limited
resources and capital.
Srinivas K T, (2013) studied the performance of micro, small and medium enterprises,
their contribution in India’s economic growth, identified the number of enterprises,
employment in MSMEs and concluded that MSMEs play a significant role in inclusive
growth of Indian economy.
Export-Import Bank of India, (2014) studied and documented the current situation of
MSMEs and support systems setup for them in India along with select countries of
Europe, Asia, Latin America etc. It studies MSMEs in the Indian as well as global
context. It explains the evolution of Indian MSME policies over time. During 1948-
1990 the objective was to increase employment opportunities and equitable distribution
of national income, during 1991-1999 it was to make the MSMEs more competitive in
the face of liberalisation and 1999 onwards the objective has been development and
promotion of the sector by addressing challenges relating to credit, infrastructure,
marketing and technology. It also stated the current challenges faced by the Indian
MSMEs and the strategies for their Development based on past experiences of India
Ghatak, Shambhu (2014) in his paper titled "Micro, small and medium enterprises
(MSMEs) in India: an appraisal highlighted that status of Indian MSMEs is better than
its counterpart in Bangladesh & Pakistan. About 36% of Pakistani SMEs have bank
accounts where as about 46% Bangladeshi's SMEs have Bank accounts. In comparison
to them about 95% of Indian SMEs have their bank accounts. He further stated than
Indian Govt. should accelerate its initiatives to provide further support to these Small
scale industries.

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IBRAHIM, P. T. (2014) in his paper entitled Role of micro, small and medium
enterprises in inclusive growth concluded that the MSMEs has been termed as the
engine for the growth of the Country. In the last few years, there has been tremendous
change in the national & State level for consolidating this sector. Poor infrastructure &
lack of marketing linkages are the key reasons for the poor growth of the MSMEs in
India. The support provided by the state as well as Central Govt. is not adequate for the
upliftment of the MSMEs in India. Therefore the entrepreneurs in India & Govt. should
take some initiatives for further-development of these MSMEs in India.
Gujarat Chamber of Commerce & Industry (2016) To support 'Make In India'
campaign, the Gujarat Chamber of Commerce & Industry (GCCI) will take help of
PSUs to revive the closed small and medium enterprises (SMEs) in the state."Under
'Make in India', government insists to develop ancillaries of defence and other sectors
at home rather than importing them. If units, which were shut down for some reasons
can be revived, they can contribute to the programme.
Das, P.(2017) focuses on the huge growth potential and opportunities a variable in India
for the development of the MSME sector, to identify important issues, challenges, and
suggestions. He used secondary data. He discovered that the sector has exhibited enough
resilience to assist itself in the strength of our traditional skills and expertise and by
infusion of capital, new technologies, and innovative marketing strategies.
Lama, P. (2018) analyzes the role and performance of MSMEs inthe Indian economy
and government policies as well as the various challenges and opportunities associated
with MSMEs. She used a descriptive approach and secondary data. She found that the
MSMEs need to improve their productivity and quality, reduce costs and innovate. To
keep MSMEs on the right path and direction, it is necessary to emphasize the
formulation of friendly policies, a conducive operating environment, proper finance,
and modern technology for MSME.

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Lending to SMEs proving to be attractive entrepreneurial opportunity for startups

(2015) For millions of small businesses in India, hunting for credit has always been a
challenge. They represent the 'missing middle' - un-catered to by financial lenders that
would rather reach for the top of the pyramid or the bottom. But the middle is large.
India has about 57.7 million small business units, many of them small proprietorships.
A host of startups are now stepping in, providing debt financing and working capital
loans to these enterprises. Venture and private equity, too, are pouring capital into this
ecosystem in the making.
Jolly's (2020) research, the COVID-19 pandemic has had a significant impact on India's
Micro, Small and Medium Enterprises (MSME) sector, which is responsible for creating
jobs and industrializing rural and underdeveloped regions, leading the government to
launch a major initiative, the Atmanirbhar Bharat Abhiyaan, aimed at reviving the
economy, with a focus on the MSME sector, involving six reforms, such as collateral-
free automatic loans, subordinate debt for MSMEs, equity infusion through MSME
Fund of Funds, revised definition of MSMEs, disallowing global tender up to Rs 200
crores, and other interventions for MSMEs.

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CHAPTER III

DCMS MES KC
 PROJECT REPORT 2023 - 2024

THEORETICAL FRAME WORK

INTRODUCTION
MSME stands for Micro, Small, and Medium Enterprises. The Government of India
introduced the concept of MSME in 2006 through the Micro, Small & Medium
Enterprises Development (MSMED) Act. Micro, Small and medium enterprises are an
integral part of the economy. They provide employment opportunities to the weakest
and poorest strata of the society, giving them a way out of the perpetual poverty that
they seem doomed to. MSMEs tap into the raw, latent entrepreneurial potential of the
country acting as seedbeds of innovation. In the pre independence period organised
industrialisation did not gain much traction but after independence ‘in all the Policy
Resolutions from 1948 to 1991, recognition was given to the micro and small enterprises.
They were termed as an effective tool to expand employment opportunities, help ensure
equitable distributionof the national income and facilitate effective mobilization of
private sector resourcesof capital and skills

CHALLENGES FACED BY MSMES IN INDIA

• Access to Finance: According to Rajamani (2022), MSMEs in India encounter
various challenges in accessing finance, although the study did not specify those
challenges. In contrast, Singh (2016) identified the primary challenges faced by MSMEs
in sourcing finance as the inadequacy of collateral assets and the lack of financial
awareness among entrepreneurs. Uddin's (2022) study found that firm attributes play a
critical role in accessing finance, and that service firms are more likely to encounter
problems in raising finance.
The existence of obstacles to developing MSMEs in India, as highlighted by Sugiarto
(2018), such as quality, human resources, capital, infrastructure, and technology,
collectively imply that MSMEs in India encounter significant difficulties in accessing
financing, mainly because of collateral, financial literacy, and firm attributes, thus

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hindering their growth and success, with multiple challenges that require resolution to
encourage their development.
MSMEs in India face several challenges when it comes to accessing finance, as
highlighted by various studies with mixed findings. While Muduli (2022) suggests that
the COVID-19 pandemic is the main challenge faced by MSMEs due to its severe
impact on the sector, Lokhande (2011) argues that access to finance is a major challenge
for MSMEs given their catalytic role in economic development. Interestingly, Muduli's
study elaborates that the pandemic has resulted in a decline in demand, supply chain
disruptions, labor shortages, and reduced cash flows for MSMEs, leading to reduced
access to finance. In contrast, Lokhande highlights that MSMEs struggle with high
interest rates, a lack of collateral, and complex application procedures.
• Marketing and Sales: Recent research highlights how MSMEs in India face
significant challenges with marketing and sales, with Tripathy (2019) reporting multiple
tariff and non-tariff barriers for exporting that limit foreign market access, Lahiri (2019)
uncovering their struggle to establish brand identities, Singh (2019) identifying
technological innovation implementation as another challenge, and Srinvasan (2015)
discovering various obstacles like competition, funding, and changes in manufacturing
and marketing strategies that ultimately limit their ability to sell effectively, implying
that these difficulties are likely to impede marketing and sales efforts of MSMEs in
India.
• Technology Adoption: It is evident from the literature that MSMEs in India confront
significant technological difficulties, with Singh (2019) discovering various hurdles
such as lack of understanding and professional assistance, and Singh (2018) identifying
proper comprehension of current operations and professional consultants as vital factors
for successful technology utilization in MSMEs in Punjab, and compatibility issues with
equipment and fear of layoffs hindering technology adoption, while Dangmei (2017)
proposed the P-CMM as a potential solution to technological challenges, stating it is a
progressive approach to improving workforce practices in contemporary organizations.

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SCHEMES COVERED UNDER RESEARCH AND FRAMED BY THE

GOVERNMENT OF INDIA FOR SME SECTOR:
1. NATIONAL MANUFACTURING COMPETITIVENESS PROGRAMME
(NMCP)
The Programme aims to develop global competitiveness among Indian MSMEs by
improving their processes, designs, and technology and market access. The Programme
envisages substantial investments towards enhancing the entire value chain of the
MSME sector. All the ten components of NMCP have already been operationalized and
are likely to spur innovation and growth in the MSME sector. These include Quality
Management Systems and Quality Technology Tools, Design Clinic Scheme, Building
Awareness on IPRs, Support for Entrepreneurial and Managerial Development,
Marketing Support/Assistance to MSMEs, Setting up of New Mini Tool Room and
Lean Manufacturing Competitiveness Scheme. These components seek to introduce the
best elements of industrial competitiveness in the MSME sector, which has often been
unable to afford such practices and techniques.
2. CREDIT LINKED CAPITAL SUBSIDY SCHEME (CLCSS)
CLCSS scheme aims at facilitating technology up gradation of small scale industries,
including tiny, agro and rural industrial units, by providing 15 percent upfront capital
subsidy institutional finance availed of by them for induction of well-established and
improved technology in specified sub -sectors / products approved under the Scheme.
The admissible capital subsidy under the modified scheme is calculated with reference
to the purchase price of plant and machinery. The maximum limit of eligible loan for
calculation of capital subsidy under this scheme has also been raised from Rs. 40 lakh
to Rs. 100 lakh. The modification in the CLCSS guidelines will further facilitate
modernization of small scale industries.
3. PRIME MINISTER’S EMPLOYMENT GENERATION PROGRAMME
(PMEGP)
Government of India has approved the introduction of a new credit linked subsidy
programme called Prime Minister’s Employment Generation Programme (PMEGP) by

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merging the two schemes that were in operation till 31.03.2008 namely Prime Minister’s
Rojgar Yojana (PMRY) and Rural Employment Generation Programme (REGP) for
generation of employment opportunities through establishment of micro enterprises in
rural as well as urban areas. PMEGP will be a central sector scheme to be administered
by the Ministry of Micro, Small and Medium Enterprises (MoMSME). The Scheme will
be implemented by Khadi and Village Industries Commission (KVIC), a statutory
organization under the administrative control of the Ministry of MSME as the single
nodal agency at the National level. At the State level, the Scheme will be implemented
through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs)
and District Industries Centres (DICs) and banks. The Government subsidy under the
Scheme will be routed by KVIC through the identified Banks for eventual distribution
to the beneficiaries / entrepreneurs in their Bank accounts. The Implementing Agencies,
namely KVIC, KVIBs and DICs will associate reputed Non Government Organization
(NGOs)/reputed autonomous institutions/Self Help Groups (SHGs)/ National Small
Industries Corporation (NSIC) / Udyami Mitras empanelled under Rajiv Gandhi
beneficiaries, of area specific viable projects, and providing training in entrepreneurship
development
4. SCHEME OF FUND FOR REGENERATION OF TRADITIONAL
INDUSTRIES (SFURTI):
Scheme of Fund for Regeneration of Traditional Industries (SFURTI) was launched in
2005-06 for making Traditional Industries more productive and competitive by
organizing the Traditional Industries and artisans into clusters. The Government of India
has approved the revamped SFURTI with modified norms for continuation during the
XII Plan. Initially, in the first phase, 71 clusters will be developed across the country
involving an outlay of Rs.149.44 crores. Under the 12th Five Year Plan it is proposed
to take up 800 clusters with funding from the Government of India and Asian
Development Bank. The time frame for the implementation of the project for each
cluster will be three years and the funding pattern under the scheme has provision for
soft interventions including skill training, capacity building, design development, etc.
hard interventions including Common Facility Centres, Raw Material Banks(RMB),

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training centres, etc. and cross cutting thematic interventions which include brand
building & promotion, news media marketing, e-commerce, innovation, R&D
initiatives and developing linkages between clusters. In addition to Khadi and Village
Industries Commission and Coir Board as Nodal Agencies for Khadi and VI clusters
and coir based clusters respectively, the revamped SFURTI also provides for
engagement of reputed national/ regional level institutions with sectoral expertise in the
major sub-sectors of the traditional industries, as Nodal Agency.

Opportunities Available to MSMEs in India

 Government Policies
The Indian government has launched numerous plans to back the progress of MSMEs
in the country, such as the Udyam Registration Portal, a shared medium for MSMEs to
enroll and access diverse benefits and help from the government. To gain government
schemes and support, Veena (2020) established it as obligatory for MSMEs to register
on this portal. Another prominent government plan for MSMEs is concerning funding,
which Maiti (2018) noticed to offer numerous openings for banks and other non-
traditional funding options. By introducing favorable policies and consistently refining
the legal framework for MSME funding, the government is producing a proper
atmosphere for such businesses.
Singh (2018) pointed out that MSMEs play a crucial part in India's economic progress
by providing employment opportunities to millions of underemployed or unemployed
individuals, so the government has taken multiple measures to back their development,
such as tax benefits, subsidies, and financial aid, and also started numerous programs,
like Technology Upgradation and Quality Certification (TUF) scheme and Market
Access Initiative (MAI), to endorse innovation and exports.
• Innovation
In India, MSMEs can retain competitiveness through innovation, as affirmed by
Julyanthry (2022) who found that programs and performance positively affect
innovation leading to competitive advantage, while Octasylva (2022) highlights
innovativeness as a critical element for MSMEs' performances, and Carvalho (2021)

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suggests that competitiveness is related to sustainability, information-knowledge, and

networks-open innovation; Julyanthry (2021) further found that entrepreneurship
insight and market orientation can enhance innovation and its mediating effect between
these factors and competitive advantage, signifying the crucial importance of innovation
for MSMEs to compete.
• Export Potential
Amitabh Kant's article, "Exports: India's Window of Opportunity," highlights the
significance of exports for MSMEs in India, arguing that they are crucial to the country's
economic growth and that MSMEs can play a pivotal role in this growth, given their
contribution to a significant share of India's exports and employment opportunities,
advising MSMEs to improve their competitiveness by embracing technology and
innovation, improving quality and standards, and identifying new markets to benefit
from the growing demand for Indian goods and services in global markets, with Kant
also emphasizing the importance of government support in facilitating MSME exports
through simplified regulations, better infrastructure, and access to finance.
• Exploring the Growth and Impact of Green Technologies in Today's World
The Indian government is committed to achieving sustainable development while
promoting economic growth and social inclusion, and according to the Ministry of
Micro, Small & Medium Enterprises (n.d.), it encourages MSMEs to adopt green
technologies to achieve this objective. MSMEs contribute significantly to the
manufacturing output and employment opportunities, making it crucial to support them
in adopting new and green technologies without harming the environment. There are
several government schemes and policies to aid MSMEs in expanding their businesses
and adopting sustainable practices. The Coir Board and the Khadi and Village Industries
Commission (KVIC) are examples of eco-friendly MSMEs that are labor-intensive and
nature-friendly, leading the way towards environmental sustainability. With new
opportunities arising every day through innovations, models, and methods, starting or
transforming a business into an eco-friendly enterprise is becoming a new trend. 94
International Journal of Advanced Research in Commerce, Management & Social
Science (IJARCMSS) -January-March, 2023

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CHAPTER IV
 PROJECT REPORT 2023 - 2024

DATA ANALYSIS AND INTERPRETATION

TABLE 1
AGE OF RESPONDENTS

AGE NO OF RESPONDENT PERCENTAGE

Below 20 8 16%

20-30 42 84%

30-40 0 0%

Total 50 100%

CHART 1
AGE OF RESPONDENTS

16%

84%

Below 20 20-30 30-40

INTERPRETATION

Majority of the respondents (84%) are included in the age group of 20-30, 16%
arebetween theage group of below 20

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TABLE 2
GENDER OF RESPONDENTS

GENDER NO OF RESPONDENT PERCENTAGE

Male 15 30%

Female 35 70%

Total 50 100%

CHART 2
GENDER OF RESPONDENTS

30%

70%

Male Female

INTERPRETATION
Majority of the respondents (70%) are female, 30% are male.

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TABLE .3

NUMBER OF MEMBERS IN THE FAMILY

NO OF FREQUENCY PERCENTAGE
MEMBERS
Up to 2 2 4%
2-4 20 40 %
4-6 22 44 %
6-8 4 8%
More than 8 2 4%
Total 50 100%
CHART 3:
NUMBER OF MEMBERS IN THE FAMILY OF TRADERS

50
45
40
35
30
percentage
25
20
15
10

up to 2 2 to 4 4 to 6 6 to 8

INTERPRETATION

It is clear from the above table that 44% of respondents opinioned that they have
4 – 6 members in their family depend in their income. There is 40% have 2 – 4
members in their family. There is 8% respondents have 6 – 8 members, only
4% have up to 2 members and other 4 persons have more than 8 members
in their family.

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TABLE 4.

MONTHLY EARNINGS OF MSME ENTREPRENEURS

MONTHLY EARNINGS FREQUENCY PERCENTAGE

Less than 10000 0 0%
10000-20000 33 66 %
20000-25000 17 34 %
25000-35000 0 0%
More than 35000 0 0%
Total 50 100 %

CHART .4
MONTHLY EARNINGS OF MSME ENTREPRENEURS
70

60

50

40 FREQUENCY

30

20

10

less than 10000 10000 to 20000 20000 to 25000 25000 to 35000

INTERPRETATION

It is clear that 66% of respondents have monthly earnings of ₹10,000-20000. 34%

of respondents have monthly earnings of ₹20,000-25000

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 PROJECT REPORT 2023 - 2024

TABLE .5
EDUCATIONAL QUALIFICATION OF MSME ENTREPRENEURS

EDUCATIONAL FREQUENCY PERCENTAGE

QUALIFICATION
Up to matriculation 37 74 %
Plus two 13 26 %
Degree 0 0%
PG 0 0%
Others 0 0%
Total 50 100 %

CHART .5
EDUCATIONAL QUALIFICATION OF MSME ENTREPRENEURS

80
70

60

50

40 PERCENTAGE

30
20

10

Up to matriculation Plus two Degree PG

INTERPRETATION:
It is viewed from the above table that 74% of the respondents are have
educational qualification up to matriculation. 26 % have qualified plus two.

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 PROJECT REPORT 2023 - 2024

TABLE .6
FACTORS WHICH LEAD THE RESPONDENTS TO SELECT MSMES.

REASON FREQUENCY PERCENTAGE

Self-motive 21 42 %
Low capital 29 58 %

Govt support 0 0%

Minimal procedures 0 0%
Total 50 100 %

CHART .6
FACTORS WHICH LEAD THE RESPONDENTS TO SELECT MSMES.

70
60

50

40
percentage
30
20

10

self-motive lack of capital Govt support Minimal procedures

INTERPRETATION:

The major reasons for selecting this type of MSMEs trade above table, low
capital lead 58% the respondents to this sector, but 42% of the respondent choose
because of their self-motive.

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TABLE .7
METHODS BY WHICH MSMES ATTRACT THE BUYER.

CATEGORY FREQUENCY PERCENTAGE

Attractive 5 10 %
arrangement
Discount 15 30 %
Quality 30 60 %
Total 50 100%

CHART 7
METHODS BY WHICH MSMES ATTRACT THE BUYER

70

60

50

40 percentage

30

20

10

attractive discound quality

INTERPRETATION

30% of respondents opinioned that they attract customers through discounts.60%

of respondents said that they concentrate on quality. 10% of respondents focus on
attractive arrangement

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 PROJECT REPORT 2023 - 2024

TABLE 8

FREQUENCY OF PURCHASING HABIT OF MSMEs

FREQUENCY No of respondents percentges
Once in a week 6 12%
Once in a two 14 28%
week
Monthly 30 60%
Yearly 0 0%
Total 50 100%

CHART 8

FREQUENCY OF PURCHASING HABIT OF MSMEs

PERCENTAGE
0%

12%

28%

60%

Once in a week Once in a two week Monthly Yearly

INTERPRETATION
Most of the retailers frequency of purchase is monthly.28% of retailers
frequently purchase in once in two weeks and 12% of retailers purchase once
in a week.

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TABLE .9
TYPE OF CUSTOMERS THE TRADERS PREFER.

TYPE OF FREQUENCY PERCENTAGE

CUSTOMERS
Regular customers 14 28 %
Local customers 0 0%
New customers 0 0%
No such 36 72 %
preferences
Total 50 100 %

CHART .9
TYPE OF CUSTOMERS THE TRADERS PREFER.

80

70

60

50
percentage
40

30

20

10

regular local new no such preference

INTERPRETATIONS:
28% of MSME's prefers on regular customers. 72% of MSME's respondents are no
such preferences

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 PROJECT REPORT 2023 - 2024

TABLE .10
WHETHER TRADERS FACE ANY COMPETITION OR THREAT FROM
LARGE COMPANIES

CATEGORY FREQUENCY PERCENTAGE

Always 10 20 %
Often 20 40 %
Sometimes 10 20 %
Rarely 3 6%
Never 7 14 %
Total 50 100 %

CHART .10
WHETHER TRADERS FACE ANY COMPETITION OR THREAT FROM
LARGE COMPANIES

45
40
35
30
25 percentage
20
15
10

always often sometimes rarely

INTERPRETATIONS:

Analysis of the above table shown that 40% of the respondents often face
competition from large companies 20% of the respondents always face competitions
from large companies and only 6% of the respondents rarely face competitions from
large companies and 14% of the respondents never face competitions from large
companies

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 PROJECT REPORT 2023 - 2024

TABLE 11
HAVING ALLOWANCES OR SUBSIDIES FROM THE LOCAL BODIES

CATEGORY FREQUENCY PERCENTAGE

Always 0 0%
Often 2 4%
Sometimes 7 14 %
Rarely 10 20 %
Never 31 62 %
Total 50 100 %

CHART 11
HAVING ALLOWANCES OR SUBSIDIES FROM THE LOCAL BODIES

70

60

50

40 percentage
Column2
30
Column3

20

10

always often sometimes rarely never

INTERPRETATIONS:

From the above table it can realize that 62% of respondents never getting any
allowances or subsidies from the local bodies. Only 14% of respondents
getting allowances from the local bodies at sometimes.

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 PROJECT REPORT 2023 - 2024

TABLE .12
CURRENT SATISFACTION LEVEL OF MSME ENTREPRENEURS

LEVEL OF FREQUENCY PERCENTAGE

SATISFACTION
Very high 0 0%
High 20 40 %
Moderate 26 52 %
Low 4 8%
Very low 0 0%
Total 50 100 %

CHART 12

CURRENT SATISFACTION LEVEL OF MSME ENTREPRENEURS

60

50

40
percentage
30

20

10

very high high moderate low

INTERPRETATIONS:

It is clear from above table 92 % of respondents are highly satisfied with their
current business. Only 8% of the trader’s shows less satisfaction, however,
none of the traders are highly satisfied is their business.

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 PROJECT REPORT 2023 - 2024

TABLE .13
ANY THREAT FROM AUTHORITIES LIKE PANJAYATH OR
MUNICIPALITIES, LIKE WISE

CATEGORY FREQUENCY PERCENTAGE

Always 9 18 %
Often 15 30 %
Sometimes 22 44 %
Rarely 2 4%
Never 2 4%
Total 50 100 %

CHART 1
ANY THREAT FROM AUTHORITIES LIKE PANJAYAT OR MUNICIPALITIES,
LIKE WISE

50
45

40

35

30
PERCENTAGE
25
20

15

10

always often sometimes rarely

INTERPRETATIONS:

It can be interpreted from the above table that 44% of traders sometimes face threat
from authorities like Panjayat or Municipalities and likewise. 8 % of traders
rarely or never facing such threats. 48 % of other type of respondents always
facing threat from authorities than other traders.

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 PROJECT REPORT 2023 - 2024

TABLE .14
DIFFICULTIES TO PURCHASE PRODUCT FROM WHOLESALE MARKET,

CATEGORY FREQUENCY PERCENTAGE

Yes 36 72 %
No 14 28 %
Total 50 100 %

CHART 14

DIFFICULTIES TO PURCHASE PRODUCT FROM WHOLE SALE MARKET,

80

70

60

50
percentage
40

30

20

10

yes no

INTERPRETATIONS:

It is clear from the above table that 72% of respondents have faced difficulties to
purchase products from wholesale market. 28% of other traders have no face
difficulties to purchase products from wholesale market.

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 PROJECT REPORT 2023 - 2024

TABLE 15

STRATEGIES USED BY MSMEs TO INCREASE

THEIR PRODUCT COVERAGE
STRATEGIES No of respondents percentages
Advertisement 18 36%

Low price 26 52%

Others 6 12%

total 50 100%

CHART 15

PERCENTAGE
60

50

40

30

20

10

0
ADVERTISEMENT LOW PRICE OTHERS

PERCENTAGE

INTERPRETATION
From the above table 52% of the MSMEs undertake low price methods
to increase their product coverage,36% of retailers use advertisement
method and the remaining retailers use other methods.

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 PROJECT REPORT 2023 - 2024

TABLE 16
ONLINE TRADING AFFECTS SEASONAL SALES
Criteria No of respondents Percentage
Yes 34 68%
No 16 32%
Total 50 100%

FIGURE 16
ONLINE TRADING AFFECTS SEASONAL SALES

PERCENTAGE

32%

68%

YES NO

INTERPRETATION
From the above table 68 % of respondents are told online shopping affects their
seasonal sales and 32% remaining respondents are told online shopping does not
affects their seasonal sales.

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 PROJECT REPORT 2023 - 2024

TABLE 17

AFFECTS OF TAX IN SALES OF RETAILERS

CRITERIA NO OF PERCENTAGE
RESPONDENTS
Yes 46 92%
No 4 8%
Total 50 100%

FIGURE 17
AFFECTS OF TAX IN SALES OF RETAILERS

Percentage

8%

92%

Yes No

INTERPRETATION

92 % of the retailers told tax affects their sales and only8% of theretailers said that
the tax doesn’t affect their sales.

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 PROJECT REPORT 2023 - 2024

TABLE 18

SALES OF MSMEs FOR THE LAST 5 YEARS

STATUS No of respondents percentage
Increased 13 26
Stable 9 18
Decreased 28 56
Total 50 100

CHART 18
SALES OF MSMEs FOR THE LAST 5 YEARS

PERCENTAGE
60

50

40

30

20

10

0
INCREASED STABLE DECREASED

PERCENTAGE

INTERPRETATON
From the above table 56% of MSMEs sales for the last 5 years were
decreased,26% of MSMEs sales were increased and 18% of retailers
sales have to changes.

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 PROJECT REPORT 2023 - 2024

TABLE 19

THE SOURCE OF CAPITAL OF ENTREPRENEURS

CATEGORY FREQUENCY PERCENTAGE

LOANS 40 80%
OWN FUND 7 14%
MONEY LENDERS 0 0%
GOVT AID 3 6%
TOTAL 50 100%

CHART 19

THE SOURCE OF CAPITAL OF ENTREPRENEURS

PERCENTAGE
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Up to 2 2-4 4-6 6-8
1 2 3 4

PERCENTAGE

INTERPRETATON
From the above table 80% of MSMEs traders opt loans for their capital
arrangement 14 % have own fund and 6 % have got govt aid

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 PROJECT REPORT 2023 - 2024

CHAPTER V
 PROJECT REPORT 2023 - 2024

FINDINGS

We have covered some of the MSMEs and Start-ups in our study/research. The
purpose of Findings is to provide a concise, clear summary regarding the topic given
to us. Below mentioned are the findings observed during the course of our research.

1. Majority of the respondents have as income between ₹10,000 and 20000

2. Low capital and self motive are the two main reasons for selecting MSME sector
3. Discount and quality products are the factors which attract customers towards
streetvendors
4. Most of the retailers purchase monthly basis
5. A few of the MSME units prefer regular customers
6. Most of the respondents often face competitions from large companies
7. Majority of respondents never got any allowances or subsidies from local bodies
8. Most of the respondents are satisfied on their business
9. Most of the respondents said that they sometime face threat from local authorities
10.MSME units have faced difficulties to purchase products from wholesale market
11.Most of the MSME's undertake low price to increase product coverage
12.Majority of respondents said that online shopping affects seasonal sales
13.Most of the respondents said that tax affect their sales
14.Sale of MSME's for last five years were decreased
15.The main source of capital of MSME is loan

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 PROJECT REPORT 2023 - 2024

SUGGETIONS
1. It is advisable for the MSME traders to set up an organization to deal with the
affairs of unorganized traders like all other sectors have.
2. The authorities should allot a proper place of business for the MSME traders
3. Government should try to provide enough subsidies to the unorganized trade to
solve the problem of finance
4. Providing a proper place of business to the MSME traders can solve their majority
problems like climatic condition, threat from police and local authorities,
cleanliness problem etc.
5. Fixation of maximum retail price from the product of MSME traders can solve the
problem of bargaining by the customers
6. Fixing selling price based on cost price can help the MSME traders to ensure the
profit.
7. The attitude of general public toward the MSME traders should be changed
8. The unorganized trading sector should be soon organized to raise their voice
in frontof the public
9. Local bodies should try to provide the MSME traders with financial and
technicalsupport to solve their problems and insecurities
10. Proper measures should be undertaken by the local authorities to ensure a
clean andtidy place business to the MSME trading workers.

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 PROJECT REPORT 2023 - 2024

CONCLUSIONS

The overall performance and contribution of small scale industries to Indian economy
is described in terms of its absolute growth in units, employment, production and
exports. The MSMEs Development Act of 2006 perhaps is the most crucial of these
recent policy changes. The formulation and implementation of policies and
programmes/projects/schemes for MSME sector is undertaken by the Ministry with the
assistance of its attached and autonomous organizations. The growth of small scale
industries can be evaluated on the the growth rates of units, Employment, output and
exports of Small scale industries in 2013 with that of 1990s.At the same time MSMEs
sector faced Key Challenges like as Lack of availability of adequate and timely credit,
High cost of credit, Collateral requirements, Limited access to equity capital,
Procurement of raw material at a competitive cost, Problems of storage, designing,
packaging and product display, Lack of access to global markets, Inadequate
infrastructure facilities, including power, water, roads, Low technology levels ,Lack of
skilled manpower for manufacturing, services, marketing, etc. Despite the various
challenges it has been facing, the MSME sector has shown admirable innovation,
adaptability and Resilience to survive the recent economic downturn and recession. The
small scale sector has grown rapidly over the years. The period of liberalization and the
development the MSMEs sector constituted an important segment of our economy.
MSMEs are a very important segment in the Indian industrial sector and would continue
to play a crucial role in the Indian Economy in the future. A rewarding feature of
economic development in India is due to impressive growth of modern MSMEs.

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 PROJECT REPORT 2023 - 2024

APPENDIX
 PROJECT REPORT 2023 - 2024

QUESTIONNAIRE

1. Name of the respondent ?

2. Age ?
Below 20 20 -30 30-40 Above 40
3. Gender
Male Female

4. Number of members in your family?

Up to 2 2-4 4-6

6-8 More than 8

5. Monthly earnings ?

Below 10000 10000-20000

20000-25000 25000-35000 More than 35000

6. Educational qualification ?
SSLC plus Two Graduated

PG Other

7. What are the influencing factors to set up an MSME?

Low capital Minimal procedures

Govt support Self motive

8. How can you attract people to purchase your products?

Attractive arrangement Discount Quality

9. What is your normal frequency of purchase?

Once in a week Once in two week

Monthly Yearly
 PROJECT REPORT 2023 - 2024

10.Which kind of customers do you prefer?

Regular customers Local customers

New customers No such preferences

11.How often face any competition or threat from large scale companies ?

Always Often Sometimes Rarely Never

12.How often do you get subsidies or allowances from local authorities?

Always Often Sometimes Rarely Never

13.What is your current satisfaction level?

Very high High Moderate Low Very low

14. How much do you have ever faced any threat from authorities like Panjayath or
Municipalities, like wise?

Very high High Moderate Low Very low

15. Do you have ever faced any difficulties to purchase product from wholesale
market?

Yes No

16. What are the strategies used by to make more profit

Advertisement Low price
Others

17. Do online sales affect your seasonal sales

Yes No

18. Do TAX affects in your sales

Yes No
19. What is the status of your sales in the last 5 years

Increased Decreased
Stable
 PROJECT REPORT 2023 - 2024

20. Which is your major source of capital investment

Loans Own fund
Moneylenders Govt aid
 PROJECT REPORT 2023 - 2024

BIBLIOGRAPHY
 PROJECT REPORT 2023 - 2024

Books
1. Harper, M., De Jong, M., 1986 “Financing small enterprise” (Intermediate
Technology).

2. Louzine, A.E., 1982 “Improving Working Conditions in Small Enterprises in

Developing Countries” (International Labour Review: Vol. 121, No. 4,
July/August).

3. Eng Hock Cia (2000). Anda juga bisa menjadi kreatif. Jakarta: Prestasi Pustakaraya.
.

4. Hisrich, R. D., & Peters, N. P. (1998). Entrepreneurship (4th ed.). Missouri: Irwin/
McGraw-Hill. .

5. Government of India: MSME Annual Report 2008-2013.

Websites
1. Enterprises with Udyog Aadhaar Number. (n.d.). Retrieved December 22, 2015,
from http://udyogaadhaar.gov.in/UA/Reports/StateBasedReport_R3.aspx.
2. MSME Overview: (n.d.). Retrieved December 22, 2015, from
http://dcmsme.gov.in/ssiindia/MSME_OVERVIEW09.pdf.
3. MSME: Govt. of India Development Commissioner (MSME) Ministry of Micro,
Small & Medium Enterprises. (n.d.). Retrieved December 22, 2015, from
http://www.dcmsme.gov.in/howtosetup/getstart.htm.
4. MSME:Ministry of Micro, Small & Medium Enterprises (AN ISO 9001:2008
CERTIFIED ORGANISATION). (n.d.). Retrieved December 22, 2015, from
http://msme.gov.in/mob/home.aspx.
5. MSME: (n.d.). Retrieved December 22, 2015, from
http://udyogaadhaar.gov.in/UA/Reports/SSI_Report.aspx.
6. MSME: (n.d.). Retrieved December 22, 2015, from
http://www.dcmsme.gov.in/publications/EMII-2014-15.pdf.