Micro, small & Medium Enterprises (MSMEs) are the plinth of the Indian economy propelling growth, creating employment, diversifying industrial activity and promoting equitable regional development. With its agility and dynamism, the sector has shown admirable innovativeness and adaptability and has maintained a constant growth rate higher than the overall industrial growth. According to the latest MSME Annual Report (2015-16) released by the Ministry of MSMEs, these enterprises contribute around 37.54% of the national GDP with manufacturing enterprises accounting for around 7.04% while service enterprises making up the remaining 30.50%. The annual growth rate of the MSME sector was 18.74% during 2015-16 which bears testimony to their impressive performance.
Though the above figures do highlight the remarkable progress and contribution of MSMEs, there are still few challenges which inhibit and restrict their growth. As per our research and interaction with MSMEs pan across India, we came across 5 most common challenges which act as deterrent for the expansion of their business.