LIMITATIONS CONFRONTED BY MICRO, SMALL & MEDIUM ENTERPRISES IN TODAY`S GLOBALIZED ERA AND WAY FORWARD

Reena Agrawal

Authors

Reena Agrawal Jaipuria Institute of Management, Lucknow, India

Keywords:

Ownership structure, Inadequate finance, Managerial inefficiency, Poor networking and risk management

Abstract

Micro, Small & Medium Enterprises (MSMEs) have been widely acknowledged as the springboard for sustainable Economic Development. Despite the widely known benefits MSMEs continued to confront numerous challenges that inhibit their ability to operate and contribute optimally. The current study was taken up to explore and identify the constraints and challenges encountered by the MSMEs. It was expected that the findings of this study will reveal the impediments in the progress and development of MSMEs, and it would draw the attention of the policymakers across the world, to address the widespread problems. The study revealed that aspects such as ownership structure, inadequate infrastructural support and rigid systems were some of the factors that continued to unfavorably affect the enterprises owned and managed by MSME entrepreneurs. The insights drawn from the study indicated that desirable training, policy and economic reforms along with appropriate support from the big corporates can encourage more and more people to take up entrepreneurship as their career.

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