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Major Challenges Faced by the MSME Sector
MSMEs: Powering jobs, driving growth, and sparking innovation – the backbone of our economy! However, it faces some common shortcomings which are listed below along with its corresponding suggestions.
1. Regulatory Requirements:
Shortcoming: Managing complex regulatory requirements can be time-consuming and resource-intensive.
Suggestion: Stay updated with regulatory changes and seek professional assistance if needed. Utilize technology to streamline compliance processes and reduce administrative burdens.
2. Shortage of Funds:
Shortcoming: Difficulty in accessing affordable capital for growth or expansion.
Suggestion: Explore alternative funding options such as angel investors, finance from banks/NBFCs at competitive rates or government-backed loans tailored for MSMEs.
3. Technology Disruption:
Shortcoming: Reluctance or inability to adopt new technologies due to cost or lack of expertise.
Suggestion: Invest in technology that can improve productivity, streamline operations, and enhance customer experience. Start with affordable solutions and gradually scale up based on business needs.
4. Skilled Manpower:
Shortcoming: Difficulty in attracting and retaining skilled employees due to competition with larger firms.
Suggestion: Offer competitive salaries, benefits, and opportunities for growth to attract top talent. Invest in employee training and development programs to upskill existing workforce.
5. Access to Market:
Shortcoming: Difficulty in reaching wider markets due to resource constraints.
Suggestion: Leverage digital marketing tools and platforms to expand the reach without heavy investments. Utilize social media, e-commerce platforms, and digital advertising strategically.
CA Ami Desai, Partner
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