HOW TO SUSTAIN THE DEVELOPMENT OF MSME SECTOR
iT IS true that the number of msme units in kerala is on a big hike because of the recent policy of both central and state govenrment. From April to August 2022 the number of start ups have added an increment of 50000 in number. Surely this will have an impact over the commercial economy of kerala. Now the big question is how to sustain this units.
tHE funding authority have to see that majority of these start ups are promoted not by experts. They dont have the basic knowledge of business, its management, its goal etc,. People chasing, behind the fund without due knowledge promote new units and later struggle for its survival. They fail to sustain the unit. They have little knowledge about its technical management. They have poor knowledge about its material management. They dont check the social viability of the , business frequently.
They have to know the economy of purchase. They have to adopt a viable credit policy. Giving too much credit means inviting a working capital crisis. Credit policy, should be genuine and practical. Over stocking of materials should be avoided. The infrastructural investment should be in proportion to investment in machinery and its production capacity.
Attitude of the market and the attitude of the promoter is an important factor deciding the sustainability of the start ups. No unit can survive without knowing the consumer behaviour. Market friendly means consumer friendly. For a good businessman consumer attitude is a deliberate creation. Attitude is created and not born. A unit,,and its promoter should sustain not depending any subsidy or grant but by its efficacy and productivity.
Sustainability is the result of resourceful management. The promoter should be a resource person equipped with necessary information of production of financial management of material management of marketing of ratio analysis etc. The dexterity of the promoter is enhanced by means of training. Many of the promoters who have started their unit from the assitance of dept. scheme have undergone EDP training. But the syllabus of the present EDP TRANING should be revised to meet the needs of changing business society.
DECENTRALISED INDUSTRIAL DEVELOPMENT is a progressive policy of a democratic govt. It is a micro level or rural level industrial development. Here mass capital investment is made possible through mass. Both the amount of capital investment and number of business increases under decentralised industrial policy. Business literacy is very important to promote this policy. Both formal and informal business education is inevitable to implement this policy. Concerned department and its machinery is responsible for community approach of entrepreneurship development.
The role of LSGD: The question is whether there is any role for LSGDs to keep the sustained development of MSME units. The policy of decentralisation implemented through LSGDs. Hence in decentralised industrial development also LSGD has a key role to play.
O.V. sreenivasan.