Page 8 - IMDR MSME BOOK 2021

FOREWORD

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