In the present scenario of business, the micro, small and medium enterprises (MSMEs) have been accepted as the engine of growth for promoting equitable development. The MSMEs play a vital role in industries promotion and generation of employment opportunities. The MSMEs provide jobs for more than six crore people, and they contribute 8% of country’s GDP, 45% of manufacture, and 36% to exports. The MSMEs sector has consistently registered higher growth rate when compared to the overall industrial sector. The unavailability of adequate and timely credit facility, high cost of credit, lack of modern technology, lack of adequate research and innovation, insufficient training and skill development are the major problems of MSMEs. The employment is possible more through the development of MSMEs sector; the technology development, financial and technical assistance, liberal labour laws, training and skills formation will assist in the development of MSMEs sector.
Hence, the present study explored the problems and difficulties of MSMEs sector in detail, and provides various measures to improve the progress of MSMEs sector in India and the study applied annual growth rate (AGR) and compound annual growth rate (CAGR), for total working enterprises, employment, market value of fixed assets and gross output (GO). Total working enterprises (WE), total employment (TE), market value of fixed assets MV (FA) and gross output (GO) are positive in values and shows increasing trend, hence there is an positive growth in total working enterprises, total employment and market value of fixed assets. The study used correlation and regression to test the impact of GO on MV (FA), and it shows that there is a significant positive relationship between the gross output (GO) and the market value of fixed assets MV (FA) of MSMEs in India; and there is a significant positive impact of GO on MV (FA) of MSMEs in India, hence H01 and H02 are rejected.
Key words: MSMEs, Potentials in MSMEs, Problems of MSMEs
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