Open Access Open Access  Restricted Access Subscription Access


Rimpi Kaur, Pallavi Manik


Micro, Small and Medium Enterprises have been the backbone of industrial sector of any economy and hence a major concern for the Government. These enterprises play imperative role in the economic development of our country as well and their contribution is noteworthy in the employment generation as during 2009-10 afforded employment to about 695 lakhs people which is 5.47% more as compare to last year. Even these enterprises recorded 11.59% growth in their production in the same year and their development ranges from traditional rural handicrafts to technology oriented industrial units. In spite commendable input to the economy, these enterprises have not been able to set an anticipated landmark may be due to lack of initiatives, ignorance, poor financial support, improper or less coverage of training or skills development programmes, poor marketing strategies etc.

The government is playing a vital role to sustain these enterprises through various policy measures that resulted constructive force and the enterprises help to generate various opportunities for Indian population though the full potential is yet to be realized. Mounting role of MSMEs in Indian economy and their problems encourage analyzing their performance and the problems for the better solution to set a desirable marker. This paper analyses the performance of MSMEs and explores the key factors like productivity, employment, GDP contribution etc. to highlight the problems of MSMEs and suggest the possible measures for superior position in economic development.


MSME, Indian economy, MSME contribution, MSME problems, MSME prospects, MSME composition

Full Text:



Ashok J. (2007). “A Study of Small Entrepreneurs Opinion towards Various Incentive Schemes”, International Journal of Management Sciences, Vol.3(1), July, pp.161-169.

CRISIL, “Small and Medium Enterprises (SME) Present Banks with Huge Untapped Business Potential”, A study on the financial profiles of SMEs, downloaded from (Accessed on 08/11/09)

Financial Sector of the World Bank Group, 2002, “Rural and Microfinance SMEs”, accessed on September 04, 2004 through

Goel A, Vohra N, Zhang L, and Arora B. (2008). “Attitude of Youth in India and China towards Entrepreneurs and Entrepreneurship”, India in the Emerging Global Order, edited by Nayak AK JR, and Jomon MG, Tata McGraw Hill Publishing Co. Ltd., pp.337-353.

Vincent G. (2004). “Sustainable Microentrepreneurship: The Roles of Microfinance, Entrepreneurship and Sustainability in Reducing Poverty in Developing Countries”, accessed on November 01, 2011 through

Londhe BR. (2008). “INNOVATION- A Tool for Sustaining Competitiveness for Indian SMEs in Global Market”, India in the Emerging Global Order, edited by Nayak AK JR, and Jomon MG, Tata McGraw Hill Publishing Co. Ltd., pp.45-64.

Kaur R. (2010). “Bank Credit and Small and Medium Enterprises in India”, International Journal of Retailing and Marketing, Vol.1(2), July, pp.10-17.

Manav M. (2012). “High Interest Rates Hit MSMEs Hard”, The Tribune, January 7.

Ministry of Micro, Small & Medium Enterprises (MMSME), Govt. of India,

Robinson MS. (2002). “The Microfinance Revolution: Sustainable Finance for the Poor”, The World Bank, Washington DC, pp.xlvii, 304, accessed on May 1, 2004 through

SustainAbility. (2004). “The Business Case in Emerging Markets”, accessed on September 5, 2004.

World Bank. (2003). “India: Scaling-up Access to Finance for the Rural Poor”, accessed on January 5, 2012 through

Yunus, M. (1994). “Extracts from the keynote address”, delivered at 85th Rotary International Convention help in Taipei, Taiwan, on June 12.


  • There are currently no refbacks.

Send mail to with questions or comments about this web site. 

International Journal of Management and Social Sciences, All rights reserved.