Sustainable Development: Strategies for MSMEs

Abstract

Micro, Small, and Medium Enterprises (MSMEs) are the backbone of the Indian economy, contributing significantly to GDP, employment, and exports. The MSMEs are very important pillar to the Indian economy, they uses their resources available in the region, provides employment to the locals. They are the one which bridges the gap between urban and rural economy imbalances. However, despite their critical role, MSMEs face numerous challenges, Labour shortage, Non availability of raw materials, Finance crunch, Market demand, Technology constraints, Infrastructure and regulatory hurdles. The government is supporting the MSMEs in all the ways, thorough various government schemes like SFURTI, PMEGP, ASPIRE, PM Vishwakarma scheme, PMEGP, SFURTI, and the Public Procurement Policy etc. This paper attempts to analyse the strategies for growth and sustainability of MSMEs in Karnataka The problems of each categories are studied. The strategies should address both short and long term problems. These strategies have to be reviewed regularly and to be modified accordingly to the situation for better results. The statistical results adopted for the problems (Labour, Finance, Marketing, etc.) yielded as the Cronbach Alpha is less than 0.6 and for 2022-24 it is more than 0.8, suggesting that the strategy were yielding good result. Also, the Anova of strategies show that the strategies during 2018-20 has more value than the Significant value indicating the strategies were not effective, but the Anova value for the period 2022-24 is lesser than the Significant value implying the strategies had effective results on the organisation performance. Findings of the paper emphasises on the fact that the COVID-19 was fully controlled and the business were running as normal the strategies were easily adopted and the problems were tackled, and the enterprises were running as normal. The problems and strategies discussed is for the small enterprise, the problems and strategies of other enterprise would give bigger picture for the MSME development. The other areas also can be considered as the environment is different and the problems would vary can give way for future research.