ROLE OF MICRO, SMALL AND MEDIUM ENTERPRISES (MSMES) IN INDIA- A CASE STUDY ON HYDERABAD REGION-USING REGRESSION ANALYSIS
Purpose: The study results show that except marginal increase in growth rate in employment generation, the growth rate in other parameters. Micro, small and Medium Enterprises (MSMEs) are one of the most vibrant and sensitive sectors in Indian economy. The significance of Micro, small and Medium Enterprises (MSMEs) is attributable to its capacity of employment generation, low capital and technology requirement. Design/Methodology/Approach: The main objective of this study is to analyse the impact of Micro, Small and Medium Enterprise Development (MSMED) Act, 2006, and also, to analyse the opportunities and threats of MSMEs in India after the liberalization period Though globalization process has expanded the market facilitating supply of superior technology, this has also forced the MSMEs to face ruthless competition from large domestic firms and the MNCs. Originality/Value: The sector has undergone several changes regarding definition. The Small-Scale Industries (SSI) has been renamed as Micro, Small and Medium Enterprises (MSMEs) with the introduction of MSMED Act, 2006. This study is based on the secondary data and primary data. We use regression analysis and structure Equation Modeling. Findings: The MSMEs must convert the threats of globalization into opportunities through increased productivity, product diversification, supply chain management, Research and Development activities. Though Globalization has increased competitiveness in Indian MSMEs to certain extent, still Indian MSMEs are not adequately prepared to compete with the global players. There has been a definite change in attitude of the Govt. from protection to promotion of the MSMEs. The Govt. has taken several policy initiatives but needs to ensure proper co-ordination and implementation of such schemes
MSME, Globalization, Liberalization, Problems, SEM Modeling.