1. Nursery of Entrepreneurship MSME is the nursery of entrepreneurship. MSMEs provide ample opportunities for entrepreneurship. They generate employment opportunities with low capital investment. They also facilitate development of backward areas and weaker sections of the society. 2. Mobilisation of Local Resources MSMEs help to mobilize and utilize local resources like small savings, entrepreneurial talents, skills, etc. which might otherwrise remain idle and unutilised| They promote traditional family skills and handicrafts. 3. Generation of Employment The MSMEs are labour-intensive enterprises. They provide work for the unemployed, better work for the underemployed, and supplementary work for the seasonally unemployed workers. Next to agriculture, this sector is considered as th major employment provider in India.4. Self-employment This sector provides limitless opportunities for self- employment. This is suited to a country like India where unemployment and underemployment prevail largely. 5. Contribution to GDP The GDP of a country increases when the production of goods and services of that country increase. MSMEs produce different types of products and provide different types of services. They produce more than 8,000 products in India and contribute 40% to the GDP.6.Low Cost of Production They also enjoy the benefit of low cost of production. They depend on local resources which are less expensive. As a result, they are able to produce quality products at reasonable price. 7. Lesser Capital Requirement MSMEs require only lesser amount of capital. As capital is very limited in a country like India, it may be greatly useful to the smallscale sector. 8. Equitable Distribution of Income MSMEs secure a more equitable distribution of income and wealth. They are particularly suitable for the fulfillment of the objective of social justice. They are more widespread and offer a much longer employment potential as compared to large-scale enterprises.iz 9.Variety of Products MSMEs produce different types of goods and services. It may beConsumer goods, producers goods, handloom products or SOphisticated items. Thus, with a variety of products, this sector is Playing a dominant role in satisfying the needs of consumers. 10.Balanced Regional Development MSMEs are found in every part of our country. Whether in rural or urban area, this sector produces various goods and services to meet the demands of customers living in different sections of the society. Thus, they help to remove regional disparities by industrializing rural and backward areas. 11. Quick Return on Investment In case of MSMEs, the time lag between the execution of investment project and the start of production is relatively short. Thus,there is a quick return on investment. VY ; 41. lack of managerial experience 2. inadequate finance 3. lack of proper machionary and equipment 4. lack of technical know-how 5.run on traditional lines 6. irregular supply of raw material 7. problem of marketing 8. personal problems 9. lack of clear-cut policy of the Govt.= 10. bogus units * 11.under utilisation of capacity * 12.other problems