Page 8 - IMDR MSME BOOK 2021
P. 8


                            When “small” makes the “big” difference
                            India is home to nearly 6.3 crore micro,
                            small  and  medium  enterprises.  From
                            2019 to 2020, the registered enterprises
                            in  this  space  grew  at  18.5%  Y-o-Y,
                            contributing  to  about  29%  of  GDP,
             employing approximately 11 crore people. As such, this
             base  of  the  economic  pyramid  is  a  primary  income
             provider, responsible for income distribution and wealth
             creation,  for  the  masses.  Additionally,  their  role  as
             ancillary  units  to  large  industry  provides  the  much-
             needed  wheels  for  economic  development  that  are
             inclusive and broad-based.
             World Bank indicates that representing about 90% of
             businesses and over 50% of employment globally, small
             and  medium  enterprises  acquire  highest  priority  in
             policy formulation by governments to absorb the growing
             workforce. Evidently, a conducive business environment
             including access to resources, markets, and information
             is crucial for these enterprises to continue playing the
             critical role in improving livelihoods and job creation.
             “Managing  Finance  in  Micro,  Small  &  Medium
             Enterprises” is a research-based study of 199 MSMEs in
             Pune district. The rationale of the research work nds
             intention  in  mapping  journeys  of  these  enterprises
             towards survival and growth. The focus of the research is
             gauging  experiences  of  individual  entrepreneurs  in
             managing nances judiciously using appropriate tools,
             and standard business practices.
             On  the  backdrop  of  an  extensive  literature  review
             indicating  access  to  nance  being  the  principal
             bottleneck, the research uses a structured questionnaire
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