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Challenges to Indian micro small scale and medium enterprises in the era of globalization

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  • Sonia Mukherjee

    (Symbiosis Law School, Symbiosis International (Deemed University))

Abstract

Introduction With the onset of the globalization process, the Indian Micro Small and Medium Enterprises (MSMEs) are lagging behind the rival firms. The rival firms originate from the neighboring countries in terms of export competitiveness. The main reason attributed behind this is lack of use of updated technology and other notable reasons. Hence, this calls for urgent action. Case description We analyze the case of Indian Coir Industry, a traditional export oriented industry facing tough competition from the other synthetic products produced by its rivals. The export value has not witnessed a huge increase which is evident from the export trend from the last 5 years. Technology can enhance competitiveness. Some theoretical insights on technology and export competitiveness, and technology transfer channels have been elaborated. Discussion and evaluation Absence of appropriate technology will reduce the potential of MSMEs, lower the demand for the product (lower sales), switching to superior quality (from rivals) and lower profit margin (sometimes loses). There should be a strong focus on implementing the new age technology, through better awareness, adopting of best practices, developing (indigenous technology) as well as technological collaboration with global partners. The Government of India has been launching several MSME schemes related to technology from time to time. However, more needs to be done. Conclusion More efforts in the form of higher investment in advanced technology and research and development, higher usage of digital and technology enabled platform, transfer of technology, more investment in human resources, improved access to finance, reduced infrastructural gaps, lesser stringent business regulations can help in improving the competitiveness of the MSMEs.

Suggested Citation

  • Sonia Mukherjee, 2018. "Challenges to Indian micro small scale and medium enterprises in the era of globalization," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 8(1), pages 1-19, December.
    • Handle: RePEc:spr:jglont:v:8:y:2018:i:1:d:10.1186_s40497-018-0115-5
    DOI: 10.1186/s40497-018-0115-5
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    References listed on IDEAS

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    1. Levy, Brian, 1993. "Obstacles to Developing Indigenous Small and Medium Enterprises: An Empirical Assessment," The World Bank Economic Review, World Bank, vol. 7(1), pages 65-83, January.
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    Cited by:

    1. Christian Hagin & Livingstone Divine Caesar, 2021. "The antecedents of success among small- and medium-sized enterprises: evidence from Ghana," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 11(1), pages 279-297, December.
    2. Geetika Jain & Archana Shrivastava & Justin Paul & Ronak Batra, 2022. "Blockchain for SME Clusters: An Ideation using the Framework of Ostrom Commons Governance," Information Systems Frontiers, Springer, vol. 24(4), pages 1125-1143, August.
    3. Hassan Shahraki & Ebrahim Heydari, 2019. "Rethinking rural entrepreneurship in the era of globalization: some observations from Iran," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 9(1), pages 1-26, December.
    4. Agarwal, Vernika & Mathiyazhagan, K. & Malhotra, Snigdha & Pimpunchat, Busayamas, 2023. "Building resilience for sustainability of MSMEs post COVID-19 outbreak: An Indian handicraft industry outlook," Socio-Economic Planning Sciences, Elsevier, vol. 85(C).
    5. Madhuri Mahato & Julie Vardhan, 2023. "Does Self-esteem and Social Identity Play a Role in Keeping the Family Occupation Alive?," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 48(3), pages 399-417, August.
    6. Zakia Jabeen & Jabir Ali & Nadia Yusuf, 2021. "Difference in business obstacles faced by firms across sizes: evidence from enterprise survey data of India," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 11(1), pages 71-81, December.
    7. Richa Shelly & Tanuj Sharma & Simerjeet Singh Bawa, 2020. "Role of Micro, Small and Medium Enterprises in Indian Economy," International Journal of Economics and Financial Issues, Econjournals, vol. 10(5), pages 84-91.

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