An Empirical Evaluation Of Government Policies To Promote Micro, Small & Medium Enterprises

Abstract

The Micro, Small and Medium Enterprises industry across the globe is one of those sectors which are generally in demand, effervescent and productive as it contributes greatly to the nation’s economy, generates employment opportunities and even earns foreign currency. M.S.M.E. as an industry includes more than eighty percent of the total entities of the country’s financial system; its employment intensity is much superior then that of the companies operating at large scale. M.S.M.E. sector is a significant stakeholder of the country’s financial system because it is endlessly contributing to the expansion and enlargement of the country’s G.D.P. by giving jobs to around 0.07 billion people, producing close to six thousand merchandises, and manufacturing close to fifty percent of the industrial output and even earns close to forty percent of the foreign exchange. In the present times this sector is mainly made up of small units which go by the name of Micro Enterprises. This indicates that M.S.M.E. is welcoming and giving employment to new individuals for livelihood and making them self depended with the help of numerous schemes launched by the government from time to time. This paper makes an effort to understand and analyze the various schemes launched by the Ministry of M.S.M.E., Government of India to help and the assist the M.S.M.E. sector in the country.