Top Challenges Faced by the MSME

Micro Small and Medium enterprises the name that you all know! It is needless to say that MSMEs are the best drivers of the economy. It is one of those strongest pillars that boost the economy of India. Not only the economy, but it also empowers the employment of youngsters. Increasing MSME schemes are boosting the growth of small, medium, and micro industries. So, this, as a result, offers more and more employment to aspirants.

But with a whole lot of potential, the MSMEs also face a lot of challenges. Further, these challenges are not only in the MSME registration process or MSME loan; challenges that MSMEs face while operating. If you are up to create your business enterprise, here are some top challenges of MSMEs you should know.

Key challenges that affect the growth of MSME

Inadequate access to market

In India, the MSMEs get a lot of challenges while get accessing the market. They do not reach wide markets. And the primary reason behind it is the insufficient use of market tools. Marketing tools play a crucial role in connecting you to the large markets where MSMEs can find their potential customers. But due to the lack of marketing approaches and tools, they don❜t get access to the market.

Further, MSMEs also don❜t have sufficient capital, and they lack awareness about the larger economic environment. So, these are the primary reasons why MSMEs get inadequate access to the market.

Adoption of the newest technology

The evolution of technology can make you or break you. So, if you don❜t keep up with the latest technology, you cannot reach the wider market. Similarly, most of the MSMEs fail to adopt new technology. So, this, as a result, slows down their operations. And if you are slower in fulfilling consumers❜ requirements, you will not be accepted in the market. So, if you plan to start your enterprise, you should always integrate the newest technology into your business.

Access to capital / credit

Another constraint in MSME operations is access to credit. The credit infrastructure in India has several bottlenecks. And fulfilling all these bottlenecks sometimes becomes challenging. You may get several MSME loan schemes 2020, but you will find many stages that include collateral requirements, a lengthy approval process, high ROI, delay in disbursement, and many more. So, this is why most MSMEs fail to operate in India.

Lack of Quality human resource

As discussed earlier, most of the MSMEs lack capital. So, this brings them to a state where they have to operate their business with minimum requirements. Some MSMEs even don❜t get quality human resources due to a lack of capital. They start their business with inexperienced employees that hamper their growth. So, this is one of the perennial challenges that every MSME faces in India. If you have already acquired your MSME registration certificate, you must ensure to avoid all these challenges.


In conclusion, these are the challenges that every MSME faces during operations. However, it would be an injustice to say that these were the only challenges. There are several other challenges, but these were the most notable ones.

Important: Please note that the information on this page / site is provided as general information for better understanding for the user and does not constitute tax, legal, or other professional advice and must not be used as such. Please consult your professional adviser(s) if you have any questions / doubts regarding the above.

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