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Challenges Faced by MSME

Small and Medium Enterprises (SMEs) play a vital role for the growth of Indian economy by contributing 45% of industrial output, 40% of exports, employing 60 million people, creating 1.3 million jobs every year and produce more than 8000 quality products for the Indian and international markets. SME’s Contribution towards GDP in 2016 was 25 % which is expected to increase to 30% by 2020. There are approximately 32 million MSME Units in India and 12 million persons are expected to join the workforce in the next 3 years. Despite of the importance of the MSMEs in Indian economic growth, the sector is facing challenges. The lists of the problems that are faced by existing/new companies in SME sector are as under: 1. Absence of adequate and timely banking finance 2. Limited capital and knowledge 3. Non-availability of suitable technology 4. Low production capacity 5. Ineffective marketing strategy 6. Constraints on modernisation & expansions 7. Non availability of skilled labour at affordable cost 8. Follow up with various government agencies to resolve problems due to lack of man power and knowledge etc. It is very important for these Business owners of MSME to educate themselves and also their team to learn, what is happening in the market place. The SMEs need to be educated and informed of the latest developments taking place globally and helped to acquire skills necessary to keep pace with the global developments. In order to meet up above challenges SME Business owners must take Leadership role and support their team on following aspects :

1. Lead from the Front. 2. Promote a healthy work/life balance 3. Show up preparedness to take any challenge in the business 4. Be friendly with their staff 5. Recognize hard work of team members 6. Team Building 7. Encourage people to get up and speak instead of being a ‘yes’ Man

For that there is a need to provide continuous motivation to the Team .... 1. Provide the resources they need to do their work exceptionally well. 2. Praise and compliment them often. 3. Help co-create purposeful work. 4. Help them develop new skills. 5. Involve them. 6. Believe in them. 7. Correct privately 8. Reward Team 9. Don’t punish failure 10. Don’t micromanage

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