Updated: Sep 13, 2019
Results of a MSME survey published recently in the Financial Times, show that sales growth and not the working capital is the major challenge they face.
Almost 47 per cent of the MSMEs surveyed said that, sales growth as the major challenge, while managing working capital and attracting along with retaining talent are the other top causes of concern for 20 per cent surveyed MSMEs.
The survey was conducted by Mumbai-based A&A Business consulting. A firm focusing on small and medium businesses.
“This projects a worrisome situation because either they are not able to pay off short-term expenses or their assets are not being put to good use,” the survey report mentioned. Pravin Daryani, CMD, A&A Business Consulting further added that Indian SME segment is unorganized. The prolonged economic downturn has made it even more difficult for them
What is Indian Government Doing to overcome this issue?
To boost sales growth and expansion, the government has been undertaking a slew of measures for digital adoption among MSMEs including Tech-Saksham project along with CII and large technology players including WhatsApp, Intel, HP, Dell etc.
The MSME Ministry has also been setting up its e-commerce portal called Bharat Craft to help MSMEs improve their sales via online selling to customers across India on the lines of Alibaba.