Mar 31, 2021
There are a number of obstacles to overcome when it comes to MSME projects in India. The country is developing at a rapid pace, and the opportunities for businesses that have not yet tapped into this unique resource are limited. The Government has made it mandatory for all organizations to provide health services and has also made it mandatory for every citizen to have at least an associate degree in some field of study so that the economy can achieve the growth projections that it has been making for the last two decade. MSME opportunities in India are growing by the year, as companies scramble to make their mark in the rapidly changing and rapidly expanding market.
India has several challenges and obstacles to deal with, but all of them can be easily surmounted when companies embrace the right tools and the right approach. It is no secret that India is a tremendous market with tremendous potential. However, there are certain challenges that can derail a business before it even begins. This is the reason why organizations should take the time to identify the right opportunities and address them head-on.
India's demographics will continue to change, with the vast majority of its population being of working age. The number of the mature population over the age of 18 continues to increase at an alarming rate. This is creating tremendous opportunities for people to pursue their dreams of a comfortable living through business ventures. However, at the same time, this segment of the population tends to lag behind other segments in terms of educational attainment. Thus, any business that is looking forward to tapping into this highly profitable market, needs to address the issues affecting this sector of the population immediately.
One of the biggest challenges facing MSMEs is the lack of access to quality infrastructure. The country's infrastructure was considered to be outdated some years back, but the recent rush of investment in vital projects such as the new terminal at Dharamshala has resulted in improving the state of the roads and rail connectivity at various locations across the country. Another huge advantage is the increasing prevalence of mobile phones and other electronic devices in Indian society. These have now become necessities, not only for work purposes but also for communicating with clients and prospective customers. Any delay in updating this segment of society will have serious consequences for the business that is looking to tap into the large potential market.
MSMEs can take advantage of the increasing competition in this sector by focusing on local development in their respective countries. They should therefore explore all the opportunities available within their own country to create value and make money. For instance, there are many small and mid-sized enterprises in India that can benefit greatly from a concerted effort involving the government, local authorities, and MSMEs. The local authorities can assist MSMEs in setting up training facilities or scholarships. They may also want to take the initiative to establish a debt recovery mechanism that will allow them to recover the losses of these ventures through a settlement of debts.
Despite the challenges, MSME projects in India can go a long way in establishing themselves in the market. MSMEs can exploit their diverse skills by establishing themselves as specialists in any given field that they are dealing in. They can offer their clients tailor-made solutions tailored to their requirements. This can be a very prudent business decision since this can lead to increased sales and improved profitability.