As of 2006, the Government of India introduced the agreement act with the Micro, Small and Medium enterprises MSME development act. These enterprises deal with the production, manufacturing, preserving, and processing of goods and commodities.
Next to agriculture, they are considered the backbone of the country. As they play an important role in countries exports, manufacturing outputs and contributing considerably good to country’s GDP as well.
These Micro, Small and Medium enterprises do create a lot of job opportunities thus helping to cover the gap between the poor and the unemployed, and rural areas would be developed too due to the employment opportunities by MSME.
The low capital cost of these industries has helped these areas when compared to that of the large-scale industries. As on par with the large-scale sector, these MSME businesses have a major role to play in the country’s economy and leading to socio-economic development.
These MSME would deal with the production for domestic as well as international markets. Thus, the development of the rural areas is one of the biggest achievements of these enterprises as they have collaborated with various state governments and ministries.
MSME and its importance for our economy
MSME is widely accepted as the biggest reason for the economic growth in the world and acceptable ways of development as it has the highest rates of growth with it.
As of google records:
These MSMEs give employment to approx. 120 million people which is considered the second largest employment generator next to agriculture. This is mainly because the investment criteria for setting up the firm, utilizing the local technology available in the development, and its flexible operations are a few of the main reasons that MSMEs are gaining such great importance in the Indian economy.
The reports suggest that these Micro, Small, Medium enterprises contribute about 1/3rd of the country’s GDP. From manufacturing, it is about 6.11% and 24.63 from the activities of the service from the MSME.
As our Indian economy is making its way to becoming a $5 trillion economy, the GDP of 50% is targeted by the MSME.
These enterprises promote all-around development specifically from the rural areas or the weaker sections of the society. And they also provide specific courses to promote development and employment opportunities.
MSME and business opportunity for women entrepreneurs:
Isn’t it amazing to see many women all around who are all willing to have their businesses and moving ahead with so much confidence?
So here are a few business opportunities and ideas that I could think of,
- Salons and Boutique
- Art studios
After the pandemic has hit us, the Government of India is encouraging more MSME units to come up and focusing more towards women empowerment and women entrepreneurs to take up various businesses and contribute to the economy.
It is always good to try out different things and be confident and independent by setting up their businesses. This is the right time to start a business keeping the many benefits of the MSME in mind.
Growth Matters Forum is a community for business owners to explore ideas, streamline growth and create an impact. Join the community here.
This blog post is also a part of CauseAChatter by BlogChatter
You can read my other blog post,