Abstract:
The micro, small and medium enterprises sector comprises 50% o f India’ s total manufactured exports , 45% o f India’s industrial employment , and 95% of all industrial unit s in the country . Despite its importance, the MSME sector has long faced extreme obstacles in accessing finance and markets . Some of these obstacles include inability t o access finance and working capital loans from banks, inability to access capital from other sources, mistreatment by larger procurement companies, difficult bureaucratic procedures for registration, and lack of management skills.
The Government of India pas sed in June 2006 an act regarding the Micro, Small, and Medium Enterprises . The Micro, Small and Medium Enterprise Development Ac t 2006 (MSMEDA) was the product of a consultative process involving over 300 industry associations, government bodies , and multiple stakeholders across India. The Act accomplishes many long- standing goals of the government and stakeholders in the MSME sector.
This paper has been authored by Jessica Wade and has been contributed by IFMR-SEFC for research and scholarly purposes.
