Technology up-gradation is a big concern for MSMEs, need to adopt latest technology to compete with rest of the world, the awareness and affordability of Information and communication technology (ICT) tools is relatively low, said Union Minister Shripad Yesso Naik.

Minister of State (I/C) for AYUSH & MoS, Ministry of Health and Family Welfare Naik while addressing an ASSOCHAM event said, “The government has been striving to provide a sustainable platform to MSMEs to grow and develop in terms of productivity, better availability to finance, wider product range, world class marketing strategies and international competitiveness.”

He said, “working capital management is a segment where ample amount of attention should be given by the small entrepreneurs. Ineffective working capital management causes the sickness amongst the MSMEs. Moreover, payment delays by corporations raise the transaction cost of MSMEs, which eventually bring these to verge of sickness. So, therefore it is important for MSMEs to adopt the working capital management effectively”.

Naik further said that MSMEs hold enormous opportunities for growing faster provided they are facilitated with sustainable finance, latest technology and suitable marketing strategies including the branding of their product.

It is well known that MSMEs have been lagging behind because of lack of financial assistance but the scenario is changing since financial institutions have been focusing towards the sector. Banks have established the dedicated cells & braches to cater the needs of this segment.   MSMEs should get the credit rating from the reliable and trust worthy credit rating agencies, said the Minister.

The government is committed to provide all possible support to promote and encourage the MSMEs in the country. The primary responsibility of promotion and development of MSMEs is one of the state governments. However, the government of India, supplements the efforts of the state governments through various initiatives

Image Courtesy : Economic Times