‘MSMEs must explore existing opportunities’ | SupportBiz

Policy Notes

‘MSMEs must explore existing opportunities’

In a candid conversation with SupportBiz, RP Vaishya, Director, MSME Development Institute (New Delhi), highlighted some of the major pain points of Indian MSMEs and suggested some possible remedies to these challenges.

Edited excerpts:

What are the key engagements of the MSME Development Institute, New Delhi?

Knowledge sharing and skill development are the two most important requirements for smaller businesses. Our institute works  towards helping MSMEs in  upgrading their knowledge and  in acquiring skills that are needed in today’s business conditions. We educate the MSMEs through structured management upgradation programmes.  Besides  these activities  that focus  on the development of MSMEs, we also offer support services for quality improvement for these  firms. We work on creating awareness about the need  for quality, productivity and environment protection.   We periodically conduct buyer- seller meets, which help  entrepreneurs  access  potential customers.

What, according to you, is the biggest challenge for Indian MSMEs?

Based on my experience while dealing with entrepreneurs, I can  state that marketing is  a big challenge for Indian MSMEs. The Government of India is working towards bringing out policies and schemes  to motivate MSMEs. The new procurement policy is a great example in this regard.  However, this policy is only part of an ongoing journey. The entrepreneur must know how to position his business and market his expertise  to the potential buyer.

In spite of several schemes available for  MSMEs, these units find it difficult to grow. How can this situation  be tackled?

Common dialogues between industry and the government policy makers need to become more pro-active.

More  awareness is required about policies and schemes.  The government and government agencies are making  efforts  to conduct  seminars and interactive sessions for such knowledge exchange.  However,  since all of these policies are ‘need-based’ in nature,   entrepreneurs must  take the initiative of seeking information which  affects  their business.

 What  is the main reason for a gap between schemes announced and schemes availed?

I  think entrepreneurs do not show enough interest and willingness to avail of the schemes and programmes which are  designed for their betterment. The guidelines of these programmes are crystal clear, and they are available on public platforms. I feel        that entrepreneurs do  not  prepare  their documentation as per the required format. This becomes a major challenge.

What could be the solution to this problem?

The only solution  for this challenge is for entrepreneurs  to cultivate  willingness to learn and adapt  to new opportunities.