Challenges Faced by MSMEs

Business Standard Smart Business

it is imperative that bureaucratic hurdles for Micro, Small and Medium Enterprise (MSME) sector are removed and there is also a burning need to increase awareness about various incentives that are being provided to MSMEs, experts said.
 

In a Smart Business event organised by the Business Standard in association with the Maharashtra Chamber of Commerce, Industry & Agriculture (MACCIA) in Mumbai on ‘Challenges faced by MSMEs’, the key advice from experts was to have transparency in accounting practices. 
 

Premal Udani, Managing Director of Kaytee Corporation Pvt. Ltd. and Former President of Apparel Export Promotion Council and The Clothing Manufacturers Association of India said, "There is a need for an ombudsman type authority for continuous guidance for small and medium units." Sumeru Shah, Founder and Head – Cross-sell at Rubique said that GST (Goods and Services Tax) is a key reform as in the future, data in GST Network based on the returns filed will act as cash flow-based funding compared to today’s balance sheet-based data which come with a lag. 
 

Saikat Roy, Director & Head SME at CARE Ratings said, "SMEs need to stay away from ‘kaccha bill’ and bring all business to books to improve their creditworthiness which will act as a base for higher ratings and finance at efficient rates." Indrajeet Sirsikar, Senior Chief Manager, Sales – SME at Aditya Birla Sun Life Insurance said the government has announced a good scheme of 59-minute loan approval for SMEs but there is no follow-up circular yet and hence real benefits are some time away.
 

Santosh Mandlecha, President MACCIA had earlier announced some important schemes for its members and said in his welcome address that for SMEs challenges are continuous and need urgent attention of policy makers.
 

Karan Gupta, Investment Consultant, IIFL securities, discussed various options for MSMEs to hedge their risk and improve financial crunch with cost efficiencies.