Page 89 - IMDR MSME BOOK 2021

Managing Finance in Micro, Small & Medium Enterprises
is expected to result in cost saving for the organization.
The big company generally use advanced technology
which in turn saves the cost and bring more pace in the
business operations. The use of technology in small and
medium rms can undoubtedly help in cost controlling
and bring more efciency in the operations.It is found
that majority (68%) of the rms reported that they are
highly efcient in using technology and consider ROI in
technology. It reects the transformation in outlook of
MSME sector towards use of technology in India.
Accounting & Finance Team
Accounting and nance work like a bloodline for any
business. Having a qualied, experienced & sufciently
large team for Accounting & nance is a boon for any
business & lack of it might create troubles for any
business. The respondent rms claim that majority
(75%) of them have qualied, experienced and enough
Finance and accounting staff members.
Risk Identication
The businesses face lot many risks and it is important to
identify, measure, monitor & mitigate those risks in
order to ensure returns. Some of these risks which small
and medium business generally face is operational risk,
nancial risk , credit risk and legal risks. It is found that
majority (59%) of MSME rms have a well devised
framework for the risk identication related to their
business and majority of them are facing operational risk
followed by nancial risk
Internal & Regulatory Compliance

In India, a business enterprise has to follow multiple
legal & regulatory requirements. It is very important to
continuously monitor & improve the compliance
management system to avoid any legal risks. It is found
that majority (85%) of MSMEs claimed that they are