STATEMENT OF THE PROBLEM
The pioneering 1991 liberalisation policy by P V Narasimha Rao government ushered in the era of globalisation in India. After the liberalisation, the economy witnessed a leap of growth in large industries and enterprises, but surprisingly the MSME sector, which contributes six percentage to the Indian Gross Domestic Product (GDP), 45% to total national export and employs around seventy million Indians, is still struggling to find its footing and reach optimum performance. Though MSME total working enterprises, employment and market value of fixed assets grown at CAGR (compound annual growth rate) of 4.39%, 4.75% and 6.64% respectively, the contribution from manufacturing and service sector MSME contribution to GDP …show more content…
• How does the regulations impact small businesses? Do developments in the legal environment improve the condition of MSME business activities or do they impose unnecessary restrictions, hindering the growth prospect of the MSME sector?
Despite policy efforts by the Government, the MSME sector is still underdeveloped and struggling to do business. The study intends to verify whether and to what extent these challenges faced by MSMEs are attributable to the fluctuating regulatory framework and to examine the reasons behind the impeded development of this sector. The MSME sector is regulated by numerous laws, and the changes happening in this front affect the growth of MSMEs in India largely on a positive note while certain challenges to the prospects of MSMEs need to be mitigated. A healthy business environment with transparent, easy to comply, and accessible regulatory procedures will incentivise potential entrepreneurs.
OBJECTIVE OF …show more content…
T K Das of City University of New York, in his book “strategic alliance for SME development” has compiled several papers published by distinguished researchers in the theme of role and impact of strategic alliance in the MSME sector.
METHODOLOGY
The MSMEs are widely dispersed throughout the economy, it comprises of a vast number of establishments which are engaged, broadly in manufacturing and service activities. For the proposed study, emphasize will be given on the manufacturing sector. Furthermore, the sector is regulated by a plethora of laws, and the study will focus on the following key areas:
1. Entry and exit regulations
2. Goods and Services Tax Act 2016
3. Labour laws
4. Environment Protection Laws
5. FDI/RBI regulations
The proposed study involves a critical analysis of the functioning of MSMEs in the country and intends to identify the major issues and challenges experienced by these enterprises in relation to the changing regulatory framework. The information collected shall be mostly referred from secondary sources by accessing various Government policies or programs including published annual reports, journals and books, analysis of case studies of MSMEs, and literature review. The primary data are based on structured questionnaire and interview of entrepreneurs and other
The pioneering 1991 liberalisation policy by P V Narasimha Rao government ushered in the era of globalisation in India. After the liberalisation, the economy witnessed a leap of growth in large industries and enterprises, but surprisingly the MSME sector, which contributes six percentage to the Indian Gross Domestic Product (GDP), 45% to total national export and employs around seventy million Indians, is still struggling to find its footing and reach optimum performance. Though MSME total working enterprises, employment and market value of fixed assets grown at CAGR (compound annual growth rate) of 4.39%, 4.75% and 6.64% respectively, the contribution from manufacturing and service sector MSME contribution to GDP …show more content…
• How does the regulations impact small businesses? Do developments in the legal environment improve the condition of MSME business activities or do they impose unnecessary restrictions, hindering the growth prospect of the MSME sector?
Despite policy efforts by the Government, the MSME sector is still underdeveloped and struggling to do business. The study intends to verify whether and to what extent these challenges faced by MSMEs are attributable to the fluctuating regulatory framework and to examine the reasons behind the impeded development of this sector. The MSME sector is regulated by numerous laws, and the changes happening in this front affect the growth of MSMEs in India largely on a positive note while certain challenges to the prospects of MSMEs need to be mitigated. A healthy business environment with transparent, easy to comply, and accessible regulatory procedures will incentivise potential entrepreneurs.
OBJECTIVE OF …show more content…
T K Das of City University of New York, in his book “strategic alliance for SME development” has compiled several papers published by distinguished researchers in the theme of role and impact of strategic alliance in the MSME sector.
METHODOLOGY
The MSMEs are widely dispersed throughout the economy, it comprises of a vast number of establishments which are engaged, broadly in manufacturing and service activities. For the proposed study, emphasize will be given on the manufacturing sector. Furthermore, the sector is regulated by a plethora of laws, and the study will focus on the following key areas:
1. Entry and exit regulations
2. Goods and Services Tax Act 2016
3. Labour laws
4. Environment Protection Laws
5. FDI/RBI regulations
The proposed study involves a critical analysis of the functioning of MSMEs in the country and intends to identify the major issues and challenges experienced by these enterprises in relation to the changing regulatory framework. The information collected shall be mostly referred from secondary sources by accessing various Government policies or programs including published annual reports, journals and books, analysis of case studies of MSMEs, and literature review. The primary data are based on structured questionnaire and interview of entrepreneurs and other