INTRODUCTION

MSME's consists of
about 90% of total enterprises in
majority of the economics across the
globe just like the majority
economies-India too has been
impacted by the same. In India,
MSME's play a crucial role in the
development and overall economic
growth of the country. Particularly in
the last decade this sector has been
enormously involved in higher
growth rate compared to the overall
industrial sector. With the evolving
trend, this sector has shown
commendable innovation and
dynamism to survive in the recent
economic downturn and recession.
As per the current
available data from
the 4th All India
Census of the
MSME's sector, it
has been
concluded that this sector employs around 59.7 million people spread over 26.1 million enterprises.
Also it has been analysed that around 45% of the manufacturing output and 40% of the total exports
of the country are because of the MSME's. Over the past half century this sector has grown
tremendously. This sector provides large employment opportunities at lower capital costs by
bringing industrialization in rural as well as backward areas which further reduces regional
imbalances and promotes equitable distribution of national income and wealth. Ministry of Micro,
Small & Medium Enterprises (M/o MSME) envision a vibrant MSME sector by promoting growth
and development of the MSME Sector, including Khadhi, Village and Coir Industries, in
cooperation with concerned Ministries/Departments, State Governments and other Stakeholders, by
providing support to existing enterprises and encouraging creation of new enterprises.
Mainly the MSME's are generally composed of manufacturing industries and they render
services with the help of small machines and manpower.
These enterprise must fall under the guidelines which are set by the Government. of India.
The MSME's are the life line of any economy especially in a country like India. They are labour-
intensive industries and play a crucial rale in the development of the economy from both economic
and social angles. They help in the growth of per capita income and effective utilization of
resources in the economy.

OBJECTIVE OF THE PROJECT

I have chosen this project on the Topic—Micro and Small-scale Industries because of the following
reasons:

� I am interested to know about the Micro and Small-scale Industries (MSME's) i.e., How they work,
coordinate, generate output, generates major growth, generate employment opportunities, give major
contribution to export, mobilise capital and develop entrepreneurial skills of the people in the
country?
 � How MSME's bring balance regional development? Also, about the ways in which it helps in improving
the standard of living of the people residing in the urban and rural areas in India.
� To know about various ways in which MSME's accounts for employment of people in rural and organised
sector.
� This project will help me in probing deeper into the application part of the subject.
� Besides this, it will also emphasize on the role of nation building and tackling the issues faced in
this field.

Various stackeholders of the project

Small-scale industries encompass a diverse range of

stakeholders, each with unique interests and concerns.
Customers prioritize product quality and value, while
employees focus on income and safety. Investors seek
financial returns, and suppliers aim for consistent revenue
and safe working conditions. Understanding these varied
perspectives is crucial for the success and sustainability of
small-scale industries.

Small-scale industries have several key stakeholders, each

with distinct interests:
 Customers: Their primary concern is the quality and
value of the products or services offered. They seek a good balance between price and quality.
 Employees: Their main interests are employment security, fair income, and safe working
conditions. They are concerned about job stability and their overall well-being within the
workplace.
 Investors: Their focus is on achieving a satisfactory financial return on their investment in the
small-scale industry. Profitability and growth are key concerns.
 Suppliers and Vendors: They are interested in consistent revenue streams and ensuring
safe business practices within their interactions with the small-scale industry. Reliable
payment and ongoing business relationships are important.


Impacts on various stakeholders of the small scale industries

The impacts on various stakeholders of small-scale industries can be both positive and negative, and vary greatly
depending on factors such as the specific industry, the economic climate, and the management practices of the business.
Here's a breakdown of potential impacts:

Table

Stakeholders Positive Impacts Negative Impacts

Access to goods and services, job Lower quality products compared to larger
creation in local communities, industries, limited product variety,
Customers
potentially lower prices, specialized potential for poor customer service, risk of
products catering to niche needs business closure leading to lack of access

Job creation, income generation,

Low wages, insecure employment, poor
opportunities for skill development,
Employees working conditions, limited benefits, lack
potential for flexible working
of career progression
arrangements
 Stakeholders Positive Impacts Negative Impacts

High potential returns on investment, High risk of business failure, limited

Investors opportunity to support local liquidity, difficulty in scaling up, potential
businesses, potential for rapid growth for slow growth

Consistent revenue streams, strong Late or non-payment, dependence on a

business relationships, opportunities single client, potential for business
Suppliers/Vendors
to grow alongside the small-scale disruption if the small-scale industry fails,
industry complex negotiation processes
Other Stakeholders:

 Local Community: Positive impacts include job creation, economic growth, and increased tax revenue. Negative
impacts can include environmental pollution, increased traffic congestion, and potential strain on local
infrastructure.
 Government: Positive impacts include increased tax revenue, job creation, and economic diversification.
Negative impacts can include the need for increased regulatory oversight and potential challenges in supporting
small businesses.
 Environment: Positive impacts can include reduced transportation distances and lower environmental impact
compared to large-scale industries (depending on the industry). Negative impacts can include pollution and
resource depletion if sustainable practices aren't implemented.

It's crucial to remember that these are potential impacts, and the actual effects will vary depending on many contextual
factors. A well-managed and successful small-scale industry will generally have a positive impact on most stakeholders.
Conversely, poorly managed businesses can negatively impact all involved.

Advantages

Small-Scale Industries
Small-scale industries have traditionally played a crucial part in the country’s economic development.
Small-scale industries have the following advantages:

1. Possibility of a huge workforce

Small-scale industries have the ability to generate a large number of job opportunities. They have a
labour-intensive nature to them. They employ more labour than other production elements. They may be
set up in a short amount of time and provide employment to a larger number of people. This is critical in a
country with a large labour pool, such as India.

2. Less capital is required

When compared to large-scale industries, small-scale enterprises require less capital. Because India is a
capital-scarce country, Small Scale Industries are better suited to the Indian environment. They can be
founded and run by small business owners with limited cash.

3. Contribution to the output of the industrial sector

Small-scale industry products account for a major share of the country’s industrial output. They
manufacture a variety of consumer goods and also industrial components in big quantities to meet
consumer demands. Small-scale industries produce consumer goods that are less expensive and meet
the needs of the poor.
4. Obtaining foreign currency

Small-scale industries contribute to the country’s foreign exchange earnings by exporting goods to
various countries across the world. Simultaneously, their purchases are minimal, resulting in a lower
foreign exchange outflow. As a result, Small Scale Industries generate positive foreign exchange. Small
Industries in Tirupur, for example, provide a significant share of India’s export trade and earn precious
foreign cash.

5. Distribution that is fair

Inequalities in wealth distribution and economic power concentration result from large-scale companies.
Smaller businesses, on the other hand, divide resources & wealth more evenly. Because it is labour
intensive, money is dispersed among a larger number of workers. This has a positive impact on both the
economy and society.

6. Make use of local resources

Small-scale industries make productive use of locally available resources that would otherwise be wasted.
Tiny sums of money that might otherwise go unused are channelled into the establishment of small
businesses. This boosts the economy’s capital formation and investment.

7. Entrepreneurial opportunities

Entrepreneurs with low funding can benefit from small scale industries. When compared to large-scale
firms, establishing an SSI involves less finance and less expenditure in technology and machines. As a
result, small business owners can simply create and run Small Scale Industries. Due to various small
entrepreneurs who contributed considerably to the nation’s development, Japan, which was ravaged by
WWII, had become a major economic force.

8. Cost-effectiveness

Small-scale businesses can use lean manufacturing techniques to achieve more quality and variety at a
reduced cost. When compared to large-scale units, they can be more cost-effective because their
expenditures are reduced.

9. Migrator reduction

When people residing in rural areas are unable to find work, they migrate to urban regions in search of
work. Large-scale migration places enormous strain on urban land, water, and other resources, resulting
in low quality of life. Small-scale industries make use of the skills and abilities of rural craftsmen, artisans,
and others, and they provide useful work to people with inherited skills, allowing them to improve their
economic status. As a result, small-scale industries aid in the reduction of migration.

10. Operational flexibility

Small businesses are more adaptable. They can quickly adjust to shifting market conditions and capitalise
on new opportunities. Some latest small-scale industries are bakeries, school stationaries, beauty
parlours, Candle Making Manufacturing Business, Incense Sticks or Agarbattis and Camphor, Handmade
Chocolates etc

Disadvantages
DEMERITS OR DISADVANTAGES OF SMALL SCALE
INDUSTRIES
DEMERITS OR DISADVANTAGES OF SMALL SCALE INDUSTRIES
1. Lack economies of scale: SSI’s produce in small quantities. Therefore they do not enjoy economies
of scale in purchases, production and marketing. Their costs are consequently higher and they are not able
to compete with large scale units. They were able to survive when many of the items were reserved for
production by SSI’s. But after the economic liberalization policy followed by the government, many of the
items have been De-reservad. Therefore large scale units can also produce products which were earlier
produced only by small scale units. Many of the SSI’s have closed down unable to compete with large scale
producers and cheap imports from other countries, especially China.
2. Low wages: Though SSI’s are labor intensive, the wages paid in SSI’s are low when compared to
those paid in large scale industries. In many SSI’s because of lack of safety measures and proper training
to workers, accidents and injuries are common occurrences.
3. Lack of modernization: Due to their small scale of operations and limited capital resources, SSI’s are not
able to invest in modernization. They do not have access to latest technology and therefore cannot
improve their efficiency of operations.
4. Inefficiency: Due to lack of scale economies, low skilled and poorly trained workers and usage of
outdated technology, small scale industry suffers from inefficiency of operations. Their productivity is low
when compared to large scale industries.
5. Overcrowding: It is quite easy to set up an SSI. The capital requirement is less and procedural formalities
are simple. This leads to intense competition and overcrowding. It may lead to cut-throat competition
affecting their survival.
6. Sickness: Due to the ease of setting up and because of the incentives available, many unemployed youth
set up SSI’s with very little business knowledge and skills. They find it difficult to survive in the business and
close down their operations. Further because of the problems of procuring finance, use of outdated
technology and lack of marketing expertise many SSI’s incur losses and are forced to close down.
7. Less innovation capacity: SSI’s have limited financial resources, therefore they are not able to invest
adequately in research and development (R&D) or acquire technology. As a result their technological
up-gradation is less and they continue with outdated processes and techniques. This hinders their
competitiveness and capacity to come out with new products, processes etc.
8. Low competitiveness: Due to their small scale, lack of modern technology and poorly trained workers,
SSI’s lack the competitiveness to compete with large scale industries. Now, many items which were
reserved for production by SSI’s have been De-reserved. Therefore SSI’s face increasing competition from
large scale Indian enterprises as well as foreign competitors.
9. Low capacity utilization: In many SSI’s, capacity utilization is low and productive capacity
remains idle. Small firms are unable to utilize their full capacity due to problems related to finance,
marketing, technology, skills etc.
10. Lack of pollution control: Large scale enterprises which are polluting in nature, are able to set up
pollution control equipment such as effluent treatment plants. SSI’s are not able to set up such facilities
because of lack of finance, technology, skills etc.

Data collection methods small scale industries

Data collection methods for small-scale industries can vary depending on the specific research question, resources available, and the nature
of the industry. However, some common and effective methods include:

Quantitative Methods:

 Surveys: Questionnaires (paper-based or online) can be used to gather structured data from a large number of small-scale
industry owners or employees. These can be designed to assess factors like production levels, sales, costs, challenges faced, and
satisfaction levels. NN represents the total number of surveys distributed, and nn represents the number of completed surveys
returned. Response rate is calculated as nN×100%Nn×100%.

 Financial Records Analysis: Analyzing existing financial data (balance sheets, income statements, cash flow statements)
provides quantitative insights into the financial health and performance of the industries. This might involve calculating key
financial ratios like profitability, liquidity, and solvency.
  Production Data Collection: Gathering data on production volume, input costs, output prices, and productivity allows for the
analysis of efficiency and effectiveness. This could be done through direct observation, or through the use of existing production
records.

Qualitative Methods:

 Interviews: In-depth interviews with industry owners, managers, and employees provide rich qualitative data on their experiences,
perspectives, challenges, and opportunities. This can be structured, semi-structured, or unstructured, depending on the research
needs.

 Focus Groups: Gathering small groups of individuals to discuss specific topics related to small-scale industries offers a
collaborative environment for exploring diverse viewpoints and generating insights.

 Case Studies: In-depth examination of a few selected small-scale industries provides a detailed understanding of their unique
characteristics and operational contexts.

 Observations: Direct observation of the production process, workplace environment, and interactions within the industry can
provide valuable contextual data. Participant observation involves the researcher immersing themselves in the industry to gain a
deeper understanding.

Mixed Methods:

Combining quantitative and qualitative methods is often the most effective approach. For example, a survey might be used to gather
quantitative data on sales, while follow-up interviews provide qualitative insights into the factors influencing those sales.

Challenges in Data Collection for Small-Scale Industries:

 Limited Resources: Small-scale industries often have limited resources for participating in data collection activities, such as time
and personnel.
 Data Privacy and Confidentiality: Ensuring the confidentiality and anonymity of participants is crucial, especially when dealing
with sensitive information.
 Data Accessibility: Accessing reliable and accurate data can be challenging, especially if record-keeping practices are informal.

 Sampling Bias: Care must be taken to avoid sampling bias when selecting participants to ensure the findings are representative
of the broader small-scale industry population.

The choice of data collection method(s) should be carefully considered based on the research objectives, available resources, and the
characteristics of the target population. A well-designed research plan should outline the rationale for the chosen methods and address
potential challenges.

Matter of Small Scale Industries

CLASSIFICATION & DEFINITION OF INDUSTRIES

(1) Manufacturing Enterprises are those enterprises which are engaged in the
Enterprises has been classified
broadly into 2 categories

Manufacturing Enterprises Service Enterprises

Manufacture/Production of goods pertaining to any industry. As per their
investment in plant and machinery (Excluding Land and Building) they are
classified into 3 categories as under :
(a) Micro Enterprises: An Enterprise where the Investment on Plant &
Machinery is upto `25 Lakhs is referred to as a "Micro Enterprise."
(b) Small Enterprises : An Enterprise where the Investment on Plant &
Machinery is above `25 Lakhs upto `5 Crores is referred to as ''Small
Enterprise."
(c) Medium Enterprises: An Enterprise where the Investment on Plant &
Machinery is above `5 Crores & upto `10 Crores is referred to as ''Medium
 Enterprise.''
(2) Service Enterprises are those enterprises which are engaged in providing/rendering services. As per their
investment in equipment (excluding land and building) they are classified into 3 categories as under:
(a) Micro Enterprises : An Enterprise where the Investment in Equipment is upto `10
Lakhs is referred to as ''Micro Enterprise.''
(b) Small Enterprises : An Enterprise, where the Investment in equipment is above `10 Lakhs &
upto
`2 Crores is referred to as ''Small Enterprise.''
(c) Medium Enterprises : An Enterprise, where the Investment in Equipment is
above `2 Crores and upto `5 Crores is referred to as ''Medium Enterprise.''
Existing MSME Classification

Criteria : Investment in Plant and Machinery or Equipment

Classification Micro Small Medium

Mfg. Enterprises Investment < `25 Lac Investment < `5 Cr. Investment < `10 cr.

Services Enterprise Investment < `10 Lac Investment < `2 Cr. Investment < `5 Cr.

Revised MSME Classification

Composite Criteria : investment and Annual Turnover

Classification Micro Small Medium

Manufacturing and Investment < `1 Cr. and Investment < `10 Cr. and Investment < `20 Cr. and
Services Turnover < `5 Cr. Turnover < `50 Cr. Turnover < `100 Cr.

OBJECTIVES OF DEVELOPING SMALL ENTERPRISES

The reasons for developing this sector are as follows :

1. To generate large scale employment opportunities for the unemployed speedily with relatively low investment.

2. To Eradicate Unemployment Problem from the Country, which is the main highlighting reason.
3. To develop the economy as a whole by covering areas across country like in Rural Areas, smaller towns and
economically backward regions.

4. To bring Backward Regions too

in the mainstream of national
development.
5. To promote balanced regional
development in the Whole
Country.
6. To ensure more equitable
distribution of National Wealth
& Income.
7. To encourage effective
mobilization of Untapped
Resources of the Country.
8. To improve Socio-Economic
Conditions and Standard of Living
of the people in the Country.
9. To seize the Vast Opportunities created for Small Enterprises due to Liberalization and Globalization policies of
the Government of India.

10. To bring more Revenue to the Central & State Governments by way of Taxes.
MSME'S : NEED OF THE HOUR
More reasons to why MSME's is the need of the day?
Apart from the objectives which tells all the resign for importuning MSME's we can further discuss more
significance of why MSME's are the need of the hour in India specifically.

1. Employment Opportunities: MSME's contributes to employment to millions of people in the country because of the
limited technology and resource available to this sector, they use more of labour and manpower for their production
activities.
2. Total Production: The strengthen the economy by accounting for almost 40% of services in India.

3. Make in India: The goods are made in India by using Indian resources and labour and then these
products are sold worldwide. Handicrafts is one fine example for the same. They also create more
demands around all over the globe.
4. Foreign Exchange Contribution: Nearly half of the goods exported out of India are manufactured
by MSME's. So India;s export done by this sector in a major source of foreign exchange currency
in the country.

VARIOUS OBSTACLES THAT MSME'S GOES THROUGH

Everyone knows that MSME's promotes growth, and development to the economy along with creating
employment opportunities. But still they also face challenges that keep threating their ability to
grow and even their survival. The reasons for the same are listed below :
1. Lack of Knowledge About Market: MSME's in India has struggled alot to access wide markets
because of reasons like inadequate capital, lack of marketing skills, lack of awareness etc.
They have not been able to use their capacity to sell across the domestic and global sector. They
continue to face hurdles in growing upto their full potential.
2. Technologically Backward: MSME's basically focus of labour intensive techniques instead of
capital intensive ones as they lack capital and are not technologically equipped and advanced. If
they get technology advanced then they can be more competitive, cost effective and efficient.
3. Availability of Credit Facilities : This is one more area where MSME's lack alot. Availability
of credit to these industries has various bottlenecks due to collateral requirement and high interest
rate. This creates hindrance in their growth because of their inability to access funds at a
decent interest rate.
4. Skilled Human Resources : Another ongoing issued faced by MSME is the shortage of
manpower. They are always so thinly staffed. Not only that the shortage of manpower is also
 assisted by unskilled resources. This makes working of long and midterm projects even more
delayed.
5. Lack of Exposure : Majority of the entrepreneurs in MSME's sectors are inexperienced in using
external experts which helps, in bringing expertise and talent. MSME's are mainly dependent on
their core team. Many a times in house teams may not have the required experience and
knowledge, so the time, effort and costs escalate.

ANOTHER HAMMER ON MSME : COVID-19 (CORONA VIRUS DISEASE-2019 )

The atrocities due to Covid-19 are not unknown to anyone. It has spelled crisis across the globe. The Government around the
globe imposed Lock down on almost each and every sector. The social distancing become the new norm and now the post-
pandemic world will make a new trading culture. The impact of Covid-19 has been terrifying to all the sector and the worst hit
among all was the Micro, Small and Medium enterprises.
As discussed in the introduction part as well, the MSME's accounts for 45% of India's manufacturing output, employing millions
of people and generating nearly half of India's export. However, the pandemic outbreak and the consequent stoppage of
economic activities have triggered panic in the nation. Many a business enterprises faced extinction risks, except for essential
activities and agricultural activities rest of them were halted.
The MSME sector was the most vulnerable sector as the rely on day to day business to stay afloat. As per the survey
by "All Indian Manufactures Organizations (AIMO)" which covered around 5000 MSME's it revealed that 71% of the business
weren't able to pay salaries in March-April 2020. A whopping 43% would shut steps if Lock-down extends beyond 8 weeks. A
vast number of MSME's will be chocked, perhaps to the point of permanent closure. Rest we all know the case of lock
down scenarios and time frame of the same in the past years since March 2020.

RECENT DEVELOPMENTS IN MSME'S SECTOR

India has 6.33 crore MSMEs out of which 6.30 crore-99.4 percent are micro-enterprises while 0.52 percent-3.31
lakh are medium and 0.007 percent-5,000 are medium enterprises. While an increase in the registered number
of small businesses would help the government in measuring their contribution to the sector's share in the
country's GDP along with offering various tax investment benefits. The outbreak of COVID-19 had impacted
MSMEs hard given the disruption caused in the supply chain, warehousing, export credit, etc. Specially the
area of had been impacted the most Haryana, Himachal Pradesh,J&K, Karnataka, Kerala, Andhra Pradesh, Delhi,
Gujarat, UP, Telangana, Rajasthan, and more.

GOVERNMENT SCHEMES UNDER MSME'S

1. Approval Loans without any Collateral: So the first initiative that the
government allowed this sector was to avail credit without collateral i.e. Udyog Aadhar Memorandum scheme
Collateral free loan is given by Government of India through SIDBI
Quality management standards and quality technology tools.
(Small Industrial Development Bank of India) under the name the credit
Guarantee trust fund scheme. This is the best beneficial scheme for Incubation schemes for new desig
small business owners.
2. Subsidy on Patent Registration & Industrial Promotion: So basically,
50% subsidies are provided for patent registration. So an application is Credit linked capital subsidy scheme.
Micro, Small & Medium Enterprises
required to be sent to ministry.
3. Credit and Overdraft Facilities with Interest Rate Exemptions: Women entrep

MSME's are eligible to avail a benefit

of 1% on the overdraft as part of the credit
guarantee trust fund scheme. Zero defect, zero effect scheme.
Grievance monitoring system.
4. Subsidized Rates of Electricity: Registered businesses under MSME act
can have a concession on electricity bill by just submitting the bill
attached with an application and a photo copy of registered certificate by MSME.
5. Protection against Delayed Payments: Currently MSME's business owners and enterprises have the
right to collect interest on payments delayed by the buyer said Ministry.
6. Certification Charges are Reimbursed: Government of India has provided immense support to MSME's to
an extent that they can even claim the expenses for reimbursement that were spent on ISO certification. This
further promoted the youth to explore their potential and start their own venture. However, still many
a people still need to know the knowledge about the same

short term and long term implications of small scale industries

## Short-Term and Long-Term Implications of Small-Scale Industries

Small-scale industries (SSIs) have a multifaceted impact on economies, both in the short and long term. Their implications can
be positive or negative, depending on various factors like the industry's nature, government policies, and the overall economic
climate.

**Short-Term Implications:**

**Positive:**

* **Increased Employment:** SSIs are often labor-intensive, leading to a quick increase in employment opportunities,
particularly in rural and underdeveloped areas. This can reduce unemployment and poverty rates in the short term.

* **Boost in Local Economies:** Increased economic activity through production and sales directly benefits local communities.
This includes increased demand for raw materials, services, and retail opportunities.
* **Faster Response to Market Changes:** SSIs tend to be more agile and adaptable than larger industries, allowing them to
respond quickly to changes in consumer demand or technological advancements.

* **Increased Competition:** The entry of numerous SSIs can increase competition, potentially leading to lower prices and
improved product quality for consumers in the short term.

* **Revenue Generation for the Government:** Increased economic activity leads to higher tax revenues for local and national
governments.

**Negative:**

* **Potential for Informal Operations:** Many SSIs operate informally, avoiding taxes and regulations, which can hinder
government revenue and create an uneven playing field for formal businesses.

* **Lower Productivity:** Due to limited access to capital, technology, and training, productivity levels in SSIs might be lower
compared to large-scale industries.

* **Environmental Concerns:** Without proper environmental regulations, SSIs can contribute to pollution and environmental
degradation.

* **Exploitation of Labor:** Informal operations may lead to low wages, poor working conditions, and exploitation of workers.

* **Limited Access to Finance:** Securing funding for expansion or improvements can be a significant challenge for SSIs,
limiting their growth potential.

**Long-Term Implications:**

**Positive:**

* **Sustainable Economic Growth:** The cumulative effect of numerous SSIs can contribute significantly to sustainable
economic growth, especially in developing economies. They often form the backbone of a diversified economy.

* **Technological Innovation:** While initially less technologically advanced, SSIs can foster innovation and adapt to new
technologies over time, boosting productivity and competitiveness.

* **Regional Development:** SSIs can play a vital role in promoting regional development by creating jobs and economic
opportunities in underserved areas.

* **Improved Infrastructure:** The growth of SSIs might indirectly lead to better infrastructure development as the demand
for utilities and transportation increases.

* **Entrepreneurial Development:** SSIs provide fertile ground for entrepreneurial development, fostering skills and
knowledge that can be leveraged for future business ventures.

**Negative:**

* **Increased Inequality:** If not managed properly, the growth of SSIs can exacerbate income inequality if the benefits are
not distributed equitably.

* **Environmental Degradation:** Continued unsustainable practices without proper regulation can lead to long-term
environmental damage.

* **Dependence on Informal Economy:** A heavy reliance on the informal sector can hinder long-term economic stability and
sustainable growth.
* **Limited Export Potential:** Without proper support and infrastructure, many SSIs might struggle to compete in the
international market.

* **Vulnerability to Economic Shocks:** SSIs are generally more vulnerable to economic shocks and downturns than larger
industries due to their limited financial reserves and market diversification.

It's crucial to note that the ultimate impact of SSIs depends heavily on supportive government policies and the business
environment. Policies that promote formalization, access to finance, skill development, and environmental sustainability can
maximize the positive long-term implications of SSIs while minimizing the negative ones.

CONCLUSION
Management is all-about getting things done through others and an effective and
efficient leader require skills in planning, organising, directing and controlling the
entire business operations. Due to the lack of resources and capital in MSME's, the
execution of all these aspects of management becomes even more tougher.
This kind of business is classified as sole proprietorship has the feature of quick and
prompt decision making but this sector's entrepreneurs are illiterate and have low
level of education as well as they lack managerial skills.
Due to the lack of ability, resources and capital the MSME's suffers from dearth of
managerial skills. Thus it is evident MSME's faces difficulties at every stage of their
life though government is putting alot of focus and attention to this sector to promote
them and help them grow but still alot more is needed for the same. Therefore, more
concentrated efforts, particularly in the area of marketing are required on the part of
the Government, Entrepreneurs, Promotional agencies and Financial agencies, so that
the growth rate of MSME's sector can be accelerated further.

BIBLIOGRAPHY
Internet:

https://en.m.wikipedia.org/wiki/ministry-of-micro-small-and-medium-
enterprises https://www.topper.com/guides/business-environment/scale-of-
business/small-scale-industriws/
https://www.google.co.in/search?q=role+of+micro+=and+small+scale+indistries&i.e.=UT-
F8&hl=en=in&client=safari
https://www.findevgateway.org/paper/2020/07/impact-covid-19-pandemic-micro-small-
and-mediument- erprises-msmes-kenya-report
Teachers
Friends and family
Books and CBSE guidelines