A study on issues and challenges faced by MSME with special reference to Odisha

Micro, Small and Medium Enterprises play a pivotal role in the economic and social development of the country. It also play a significant role in the development of the economy with its effective and innovative entrepreneurial spirit. Small businesses often face a variety of problems related to their size. This is often a result of poor planning rather than economic conditions. It is a common rule of thumb that the entrepreneur should have access to a sum of money at least equal to the projected revenue for the first year of business in addition to his anticipated expenses. MSMEs contribute 45% in the industrial output, 40% of exports, employing 60 million people, create 1.3 million jobs every year. It produces more than 8, 000 quality products for the Indian and international markets. Its contribution towards GDP in 2011 was 17% which increased to 22% in 2012. But these are often confronted with problems that are uncommon to the larger companies and multi-national corporations. These problems include the following: Lack of ITs Support, Lack of ITs Literacy, Lack of Formal Procedure and Discipline, Uneven ITs Awareness and Management Skill, Lack of Financial Resources, Lack of Human Resources, Raw Material problems, Production problem, etc. This paper analyses the various challenges and issues associated with MSMEs in India.