Need to do more: Bid to resolve Rs 5-lakh crore pain point for MSMEs sees tardy progress
Synopsis
Costs for MSMEs to do business is rising in all sorts of ways. Unpaid dues are central to their woes.
For the financially starved MSME sector, securing outstanding payments from various businesses remains a challenging task-an issue that often affects their very survival.
Whenever an MSME does not receive payments for the goods or services rendered within the stipulated times, it certainly affects them in several ways. Besides crippling their liquidity, it brings down their motivation and also leads to a significant erosion of their trust in
Synopsis TReDS was supposed to be a game changer-a platform that could sort out the issue of delayed payments for MSMEs. Almost five years later, the achievements may have fallen short.
If fundraising has been a perennial problem for the country’s small business, the other serious issue is related to delayed payments. The problem was so acute that MSME Minister Nitin Gadkari pegged the outstanding payments to MSMEs by government agencies, public sector undertakings, and major industries at an estimated Rs 5 lakh crore last year.
For the financially starved MSMEs, unpaid dues are a serious strain on their working capital. This
68% start-ups, MSMEs didn t benefit from Centre s COVID-19 schemes, claims survey
Funding remains major problem for startups and MSMEs, survey reveals; around 28 per cent listed raising funds or loans as top challenges in 2021, while another 25 per cent were worried about finding growth
Joe C Mathew | January 15, 2021 | Updated 13:46 IST
Only 21 per cent said they benefitted from the Centre s schemes
A clutch of MSME (Micro, Small & Medium Enterprises) and startup schemes of the Centre, which were meant to help them tide over Covid-19 crisis may not have helped, an online poll by community social media platform LocalCircles says.
LocalCircles annual Pulse of the startups and Micro Small & Medium Enterprises (MSMEs)s survey finds that 68 per cent respondents did not benefit from the government s MSME and startup-centric schemes like Startup India, MSME Samadhan, no or low interest loans, Make in India, Atmanirbhar Bharat, etc, in the past 12 months.