MSME EPC SUGGESTS 5-POINT STRATEGY TO REVIVE AILING MSMES
The MSME Export Promotion Council (MSME EPC) has suggested a 5-point strategy to boost and help nearly 25 per cent of ailing micro, small and medium enterprises out of 5.36 lakh in the state which will save a significant number of jobs.
While releasing the study on ‘Revival & Development of MSMEs in Odisha’, the MSME EPC chairman, Dr D S Rawat said, the 5-point strategy has been recommended underlining the need for aligning factors in the development targeting systemic reorientation to ensure coverage of a diverse pool of MSMEs.
Dr Rawat further said, currently, there are over 5,35,910 establishments in Odisha; 59.48 per cent in rural and 40.52 per cent in urban areas with the investment of Rs.25,655 cr providing jobs to skilled, semi-skilled and unskilled persons. Therefore, there is an urgent need to help nearly 25 per cent of enterprises struggling for survival.
The suggested strategy includes customized intervention-specific schemes for new-age companies, manufacturing, services, formalization through Udhyam registration, financing, risk mitigation, and micro cluster schemes.
The study has also suggested on a priority basis the introduction of a single window payment system, self-certification, delegation of powers downward, and setting up of specialized start-up centres housing product testing facilities, fab labs, maker labs, assembly facilities etc.
The Council has also recommended innovation funding schemes, equity for start-ups, equitable financing to MSMEs through NBFCs and banks with support from tin-tech, and direct lending to MSMEs through state-sponsored institutions.
Dr Rawat said the possibility needs to be explored to develop quasi-equity instruments such as long-term debt with coupon and revenue share components. These measures are essential as the micro and small units are the economic backbone of Odisha. The state government should create a platform that helps aggregate raw materials and experts; help micro, small and medium units connect with large buyers, public and private, vendors for shared services and provide access to space capacity available with MSMEs.
B2B fairs with the support of industry organizations are conducted. Also, a common brand for artisanal products, either based on clusters or for the state as a whole, needs to be designed and promoted accompanied by facilities for testing and quality certification. The state should support this by creating an improved mechanism to monitor the adherence to the purchase preference policy of the government and develop a mechanism to capture data on both demand and supply of labour. The purchase preference of 25 per cent for micro and small enterprises should be enforced. In addition, specific purchase preference benefits are given to entrepreneurs from the SC/ST communities.
The MSME EPC Chief said “A typical entrepreneur, particularly in the micro and small category is best equipped to operate the business. However, business is a sum of many parts and, therefore, the State’s MSME department should look at targeted, sectoral interventions in which specific sectoral plans are made to train entrepreneurs based on their needs.” The MSME EPC believe, if these measures are taken by the authorities promptly, sickness among the MSMEs in the state will come to 10 per cent as against between 25-30 per cent and new MSMEs could be set up around 50,000 per year creating the new direct jobs for 2 lakh persons and indirect jobs for one lakh people.
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