This presentation focusses on various problems which are faced by MSME's in India and suggest the ways to solve them.

1. CHANDNI AGARWAL
Semester III (MBA – M52)
MONIRBA, University of Allahabad

2.  To know various problems that affect the
growth of micro small and medium
enterprises.
 To determine the extent to which these
factors affect the growth and survival of
enterprises.

5.  The banks are not providing adequate
amount of loans to MSME’s.
 The owners of MSME’s has to produce
different type of papers for their
worthiness.
 The interest rate from other sources of
loans are very high.

7.  Globalization is hampering the success of
MSME’s.
 The big companies are able to provide better
quality at cheap prices.
 Big companies have advantage of their
position in market.

9.  Because of poor infrastructure, low
production capacity at high cost.
 Issues of storage.
 Inadequate infrastructure facilities
including power, water, roads etc.

11.  Skilled manpower is not available to
MSME’s.
 The training and development programs
conducted by MSME’s are not sufficient.

13.  For MSME’s required raw material, skilled
work force and other inputs are not
available in the market.
 Results in high production price or low
product quality.

15.  The owners of MSME are not aware of
the latest technology.
 The methodology used is outdated.
 Absence of in-house research and
development.

17.  Unable to spend large amount on
development of marketing facilities.
 The ineffective advertisement and poor
marketing channels due to lack of
resources lead to poor selling.
 Designing, packaging and product display.

19.  Various laws and regulations stops the
growth of industries. Few of them are very
complex.
 There are 44 central laws and more than
150 state laws on the labor laws.

21.  Misuse of government subsidies and
incentives by entrepreneurs.
 Creates problem for genuine firms to gain
help from government.

24.  Mutual supply of Technologies
 Constitution of Panel of Consultants
 Determination of technological needs
 Training and awareness programs
 Relaxation in labor laws
 Adequate credit arrangement
 Regular supply of raw material and inputs