The Micro, Small and Medium-sized Enterprises (MSMEs) sector in India contributes significantly to employment, industrial output, and exports. And bringing in innovation is a key to drive their growth. It is central for sustainability, growth & competitiveness in the context of ever-changing market dynamics. Currently the sector faces several challenges such as lack of innovation-enabling support in key areas of technology transfer, innovation management etc., there is a disconnect amongst the actors (industry and specifically, small enterprises, research institutions, buyers, technology suppliers etc.) and there is a pressure to implement more environmentally sustainable production processes.
In order to address the existing challenges, MSME INNO promotes the active involvement of the Government, academia and business member organizations to improve the innovation capacity and sustainability of MSMEs and strengthen its long-term competitiveness.
The Result: The MSMEs would have access to modern techniques, and environmentally friendly inclusive innovations that will help to create new economic opportunities for the MSME sector. This would help them lead in the market place to stand as a large employer or producer of the country and contribute to the GDP or exports.
The project facilitates joint industry projects by fostering cooperation between industry, academia and government to enable the MSMEs with innovative solutions for industry-specific problems. Institutions that promote economic development such as business chambers and associations are supported in developing a range of innovation-enabling services for MSMEs. In line with the efforts towards creating an environment for innovation promotion and entrepreneurship development, business incubators are becoming popular that can benefit new ventures, particularly by adding credibility through association, access to shared and more affordable resources and by providing professional expertise and advice.
India promotes innovation within the MSMEs through multiple schemes that provides them easier access to loans and subsidies depending on the market vertical that they cater to. They are useful to the MSMEs, business associations, their member companies and all relevant stakeholders.
Upgrading to modern techniques and adopting environmentally friendly and inclusive innovations is imperative to create new economic opportunities for the micro, small and medium enterprises in India today. To strengthen their long-term competitiveness, business incubators will play an important role as they have first-hand knowledge of the challenges faced by startups and concerns regarding policy regulations, finance, labour, infrastructure etc.
Introducing Innovative Solutions to Tackle MSME Challenges
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