MSME are complementary to the large industries as ancillary units and this sector contributes enormously to the socio-economic development of the country and in recent decades with increased global economic competition, many MSMEs have successfully set up activities beyond their domestic market and are functioning as an economic growth engine in employability. Despite the MSME sector contributing significantly to the economy, it continues to face several challenges.

Reasons

• The timely and adequate access to finance remains the top-most challenge for the Indian MSMEs which have been highly constraining their growth.
• MSMEs have failed to upgrade those technologies which could provide them with digitized benefits while they develop innovative ideas. The primary reason being, they don’t have much resource and business continuity to make investment into the technology side of it like cloud computing, IoT, consumer analytics etc.