Experts discuss growth potential and key challenges for MSMEs

The growth of any economy relies on the contribution of small, micro, and nano entrepreneurs. In the case of India, MSMEs play a crucial role, accounting for approximately 30 percent of the GDP and employing over 11 crore individuals. On the occasion of World MSME Day, Startup Street sheds light on nano entrepreneurs, whose annual turnover is below Rs 1 crore. Surprisingly, this group constitutes 80 percent of micro-entrepreneurs, yet there are no specific policies or available data tailored to their needs.

Geeta Goel, Managing Director of MSDF India, highlighted the potential of these enterprises during an interview with Startup Street. She emphasised that with the right credit support, these nano entrepreneurs have the ability to expand their operations and generate more employment opportunities.

“If given credit support, these enterprises actually have the ability to grow and employ more people. There is data to show that enterprises that start with investment capital of more than two and a half lakhs actually have a 3x higher survival rate than enterprises that start with lower capital. So I would say given, they are 11 million, given they employ people, they have the capacity to grow.”