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With about 7 crore working units and a nearly 30% share in India’s nominal GDP, the MSME sector is amongst the most essential and growth-focused sectors contributing to national development.
However, it is plagued by a host of factors like physical infrastructure constraints, presence of an informal structure, low and slow adoption of technology, upskilling of the workforce, lack of access to credit and capital, and delayed payments that sometimes even lead to no payments.
Even though efforts are being made to combat the challenges of MSMEs in India, the existing data indicates that the micro sector provides approximately 97% of the employment in the MSME sector. This implies that these micro-enterprises cannot grow into small and medium enterprises, primarily because of the challenges mentioned above.
What causes the challenges
While discussing the problems mentioned above in detail, it is important to realise the root cause of the challenges of MSMEs in India and what can be done to alleviate their concerns.
- Improper infrastructure: Though readily intuitive in understanding, the infrastructure problem is far more complex. It exists throughout the value chain, impacting every aspect of the MSME business, from sourcing and procurement to receiving payments. Infrastructure can be understood in 2 ways:
- Macro: This relates to countrywide concerns like the availability of electricity, water, roads and highways, among others. Here, improvements need to be driven by the government’s efforts, central, state or local.
- Micro: This relates to the choices of individual MSME units. It is primarily about how such units plan to run their businesses. Decisions related to digital enablement, technology adoption and investment into assets that help achieve economies of scale are made here.
- Lack of access to credit and capital: Banks and other financial intermediaries require some financial results or collateral to disburse credit. Financial results are essential to ascertain the credit-worthiness of the MSME business owner. Meanwhile, collateral is required to serve as a means of recovery of debt if the MSME unit cannot pay back the loan. However, most of the MSME units lack such documentation. As a result, unregistered enterprises have been unable to raise funds from the formal credit channels. This is also one of the most significant challenges MSMEs face during Covid-19. However, the Government of India has launched schemes that enable MSMEs to avail of credit without collateral. This has shown little success as it requires a substantial digital presence of the MSME unit, which is a far bigger problem.
- Delayed payments and consequent working capital crunch: MSMEs working majorly in the B2B domain in the construction, metal, mining and engineering sector often receive delayed payments. This leads to a liquidity crunch due to which they are unable to finance their day-to-day operations. This challenge is prevalent in the manufacturing sector, with over 44% of the MSME units facing delayed payments. However, this percentage was a little lower at 27% for the services sector. Despite the enactment of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, which penalises delayed payments to the MSME sector, the low bargaining power of these units is a major challenge. They cannot negotiate the terms of payments, let alone fight back in the case of non-payment.
- Negative impact due to Covid-19: Due to a K-shaped recovery that the world witnessed right after a massive blow to businesses worldwide, the impact on the MSME sector has also been mixed. Depending on the MSME units’ industry, they were either:
- Massively negatively impacted
- Moderately negatively impacted
- Not impacted much
- Positively impacted
The apparel, leather and meat processing, and construction businesses have been impacted significantly negatively due to the sudden supply chain disruption. This disabled them from procuring raw materials, processing them (because of the absence of labour), transporting them (due to disruption of logistics), and selling them altogether (because of reduced willingness to spend and fear of consumption of meat). The sectors related to essential activities like the synthesis of chemicals, production of health-related equipment and other utilitarian products witnessed no adverse long term impact to even positive impact in some instances.
- Lack of skilled labour: The paucity of skilled labour is perhaps one of the most significant challenges MSMEs face in India. Due to the hiring of unskilled labour, MSMEs cannot function to their fullest with efficiency. This is also because the upskilling efforts have not been commensurate with the needs of the industry. To combat this, dedicated upskilling efforts like Pradhan Mantri Kaushal Vikas Yojana (PMKVY) and Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) have been made functional with the combined goal of upskilling 38 million youth by 2022.
Conclusion
The challenges faced by the MSME sector in India are numerous and complex. However, there also exist elaborate solutions to combat these challenges. The governments at central, state and local levels have been working to mitigate the concerns of MSMEs to empower them and enable their transition from micro to small and medium enterprises.
These efforts have also shown a positive impact. The share of the MSME sector in India’s merchandise exports stood at 48 per cent in 2018-19. This indicates that Indian MSMEs are becoming globally competitive, and our output is being accepted internationally.
General awareness is the process of learning about a certain subject relevant to a society’s culture, civilization, community, or a country’s social interests; this important knowledge can also take the shape of cultural knowledge. Every area of human existence is related to general awareness, and it may even be part of academic study. This knowledge can be extremely beneficial to an individual or a community. A general understanding of art, discovery, athletics, politics, culture, film, medicine, and history are all examples of what comes under general awareness.
Almost every area of human existence is covered by general awareness, including clothing, family, physical health, and aspects of entertainment, arts, and sciences. General awareness is an important feature of human life since it allows us to be aware of many things that are going on around us. General awareness aids in making future decisions, vacation planning, and having the correct understanding of the things and situations around us.
Importance of General Knowledge
Common sense is a valuable asset that aids our personal and intellectual development. It both narrows our perspective of the world and helps us better grasp events. It also examines them. Common sense is mostly used to determine what has to be done or what is occurring. The importance of general knowledge in our life is described below.
1. Better Grades
General knowledge assists any student in increasing their academic knowledge by providing proper knowledge of various types of events and useful events from the past, through which students can gain a comprehensive understanding of basic facts. This knowledge also assists students in successfully participating in various quiz and debate competitions. General knowledge also assists students in obtaining high marks in competitive entrance exams.
2. Making Better Decisions
General knowledge helps to keep us connected and up to date with every part of the world. Aside from that, it aids in our ability to have a positive social impact. It also aids in making important life decisions and deciding on career options. Common sense is useful in providing accurate information about various options and requirements.
3. Interaction
General knowledge promotes effective interaction between people of different cultures by providing a good understanding of diverse cultures and societies. It also makes it easier for people from diverse communities to acclimate, which is only feasible with prior knowledge of the culture and region. Common sense about diverse cultural etiquettes is very beneficial, making interacting with different individuals easy and pleasant.
4. Improving Public Speaking Abilities
General knowledge is needed to boost public speaking abilities; it provides great control over current events, which instil confidence in public speaking. This is only achievable with adequate knowledge and vocabulary. It also makes it easier for students to pick up new topics and talk about them, allowing them to share intriguing facts.
Difference Between General Awareness and General Studies
Competitive examinations see a variety of specific syllabi regarding job profiles, which are mainly made for conducting examinations. There is also a section of General Knowledge and General Awareness in these exams. Both the scope and meaning of these two words are different, which needs to be explained here.
The following is the difference between general awareness and general studies.
The term “general awareness” refers to people’s understanding of what is going on in the world in the present, that is, the events of day-to-day life during a period of 3 to 6 months. This number of months might be taken into consideration when planning. On the other hand, general studies is a study of all the subjects you’ve studied since elementary school.
General studies refers to wide, general, universal understanding gained through experience or education that aids in the transmission of knowledge and skills. It also aids in the dissemination of extensive or general information. This can be accomplished by considerable training and a focus on a single media.
General awareness primarily gives comprehensive knowledge on a certain situation or development; however, it is limited to regular happenings in the news around the world and has no bearing on historical events. National matters, international affairs, bilateral affairs, sports, people in the news, places in the news, and recent events in the banking sector are all covered under general awareness.
Difference Between General awareness and General Intelligence
General intelligence is a construct that consists of a variety of cognitive talents. These skills enable people to learn new things and solve issues. This broad mental capacity underpins specialised mental abilities in domains like spatial, numerical, mechanical, and verbal abilities. Artificial general intelligence (AGI) refers to an intelligent person’s potential ability to comprehend or learn any intellectual endeavour that a human can. It is a key goal of certain artificial intelligence research, as well as a popular topic in science fiction and futurology.
General awareness refers to being aware of current events. General awareness is simply concerned with the daily news from across the world and has little to do with historical occurrences. Many competitive exams use the word “current affairs” to refer to broad awareness.
Conclusion
For today’s comprehensive education, it is very important to have general awareness, whose importance is being seen mainly in the field of scientific and technical education. General awareness is necessary for all, which helps in personal prosperity. General awareness has different meanings for different elements, such as garden planning, chequebook addition, subtraction, cooking, and art comprehension,and has special use of general awareness, which helps the students to grow on the academic front.
