ABSTRACT:

Micro, small and medium enterprises (MSME) as the most common form of enterprise in many
countries are very significant for the development of their market economics. They are the
main creators of new working places and they present a vital core of the market economy. The
experiences of well developed countries show that the sector of micro, small and medium
enterprises is a basic link to the growth and development of their public economy.
Policymaking in the entrepreneurship field is complex and messy. Many areas of Government
policy affect levels of entrepreneurial activity. The mix of policy options will depend on a
number of factors including the prevailing attitudes of the population towards entrepreneurship
and the structure of labour force the size and role of Government, the prevalence of existing
entrepreneurial activity and the growth of local micro, small enterprises as they can help to
directly alleviate poverty by increasing income levels and creating jobs. The global markets
have been changed considerably as also the activities of Micro, Small and Medium enterprises.
Today for businesses to survive dynamism and entrepreneurship must exist in its fullest degree.
We found in the past records of msme development that those countries have succeeded in
achieving higher growth of msme who have given much more emphasis on Entrepreneurship
development program.

INTRODUCTION:

Hyderabad is known for its vibrant MSME (Micro, Small, and Medium Enterprises) sector.
There are several MSMEs operating in Hyderabad in various sectors such as manufacturing,
services, IT, and more. Some of the popular MSME sectors in Hyderabad include:

• Information Technology (IT): Hyderabad is a hub for IT companies, and many MSMEs
operate in the sector. The city has a robust start-up ecosystem, which makes it an ideal
location for entrepreneurs in the IT sector.
• Pharmaceuticals: Hyderabad is also a major pharmaceutical hub in India, with several
MSMEs operating in the sector. The city has a well-developed infrastructure for
pharmaceutical manufacturing and research and development.
 • Textiles: Hyderabad has a rich tradition of textile manufacturing, and several MSMEs
operate in the sector. The city is known for its traditional silk sarees and dress materials.

• Food Processing: Hyderabad is also emerging as a hub for food processing MSMEs.
The city has a large market for processed food products, which makes it an ideal
location for entrepreneurs in the sector.

• Handicrafts: the handicrafts sector The city is known for its exquisite for pearl
jewellery.

Micro, small and medium enterprises sector has emerged as a highly vibrant and dynamic
sector of Telangana economy. Msme not only play crucial role in providing large employment
opportunities at comparatively at lower capital cost than large industries but also help in
industrialization of rural and backward areas, thereby, reducing regional imbalances, assuring
more equitable distribution of state income and wealth. MSMEs are Complementary to large
industries as ancillary units and this sector contributes enormously to the socio-economic
development of Telangana. Under the Micro, Small and Medium Enterprises Development
Act, 2006, the Government of India established The National Board for Micro, Small and
Medium Enterprises (NBMSME) to examine the factors affecting promotion and development
of MSME. The Telangana state is home for several major manufacturing industries in bulk
medicines, agro-processing, cement and mineral based industries. Telangana is also hub for
many IT firms. Today the world is growing rapidly and people are having good opportunities
for employment and technology is plus points for production of goods and services which will
promote access to domestic trade and international markets to expand their business and
investment.

Classification of MSMEs

Both categories of enterprises have been further classified into Micro, small and medium enterprises
based on their investment in plant and machinery(for manufacturing enterprises) or on equipment (in
case of enterprises providing or rendering services). The present ceiling on investment to be classified
as Micro, small and medium enterprises is as under:
Manufacturing enterprises: These are enterprises that engage in the manufacturing or
production of goods related to any industry specified in the first schedule to the
industries(Development and regulation act,1957) or employing plant and machinery in the
process of value addition to the final product having a unique name or character or use of
manufacturing enterprises are defined based on investment in plant and machinery.

Table 1 below illustrates the various definitions of the manufacturing enterprises.

ENTERPRISES INVESTMENT IN PLANT AND

MACHINERY

MICRO ENTERPRISES IF THE INVESTMENT DOES NOT EXCEED

10 LAKHS RUPEES

SMALL ENTERPRISES IF THE INVESTMENT IS MORE THAN 10

LAKHS BUT DOES NOT EXCEED 2 CRORES

MEDIUM ENTERPRISES IF THE INVESTMENT IS MORE THAN 2

CRORES BUT DOES NOT EXCEED 5
CRORES

TABLE1:MANUFACTURING SECTOR CLASSIFICATIONS

SOURCE:MINISTRY OF MSMEs

ENTERPRISES Investment in plant and machinery

MICRO ENTERPRISEs IF THE INVESTMENT DOES NOT EXCEED

25 LAKHS RUPEES

SMALL ENTERPRISES IF THE INVESTMENT IS MORE THAN 25

LAKHS BUT DOES NOT EXCEED 5
CRORES

MEDIUM ENTERPRISES IF THE INVESTMENT IS MORE THAN 5

CRORES BUT DOES NOT EXCEED 10
CRORES
TABLE 2: SERVICES SECTOR CLASSIFICATIONS
SOURCE:MINISTRY OF MSMEs
 • Services enterprises: These are enterprises engaged in the provision and rendering of
services which are defined based on investment in equipment. Table 2 below shows the
various classifications of the services sector.

Definition of MSME

Micro Small and Medium enterprises is defined by RBI and GOVERNMENT OF INDIA
differently by the manufacturing and service sector.

Highlights of new MSMEs

‘ATMA NIRBHAR BHARAT ABHIYAN’ or the self-reliant India scheme of 2020 by the
Government of India has given a new definition for MSMEs.

FOLLOWING ARE A FEW HIGHLIGHTING FEATURES OF NEW MSMEs:-

1. A provision of collateral free loan to MSMEs

2. An arrangement of loans to MSMEs worth of Rs. 3 lakh crores
3. An offer for MSMEs to get a moratorium period of 12 months
4. Consideration of manufacturing and service MSMEs as the same entities
5. MSME is a granted a repayment tenure of 48 months
6. MSMEs are assured a 100% credit guarantee
7. Reclassification of MSMEs will benefit approximately 45 lakh units

NEED OF STUDY:

MSMEs are an important sector for the INDIAN AND TELANGANA ECONOMY and have
contributed immensely to the TELANGANA STATES (HYDERABAD DISTRICT) socio-economic
development and growth. It not only generates Employment opportunities but also works hand in hand
towards the development of TELANGANA States backward and rural areas.

Features of MSMEs:

Following are some of the essential elements of MSMEs:-

• MSMEs work for the welfare of the workers and the artisans. They help them by giving
employment and by providing loans and other services

• MSMEs provide credit limit or funding support to banks

• They promote the development of entrepreneurship as well as up-gradation of skills by

launching specialization training centres for the same

• They support the upgrading of development technologies, infrastructure development

and The modernization of the sector as a whole

• MSMEs are known to provide reasonable assistance for improved access to the
domestic as well as export markets.

• They also offer modern testing facilities and quality certification services

• Following the recent trends, MSMEs now support product development, design
innovation, intervention and packaging.
SCOPE OF STUDY:

The study is restricted to GOVERNMENT OF TELANGANA(HYDERABAD DISTRICT).

The information here is funds allocation and expenditure of Government schemes provided to
MSME sectors, The data collected is limited to last 5 years till date in employment and exports.

OBJECTIVES:

1. To identify different schemes offered by MSME.

2. To analyse the financial support provided by banks, financial agencies, Government of
India and Government of Telangana
3. To analyse the performance in MSME in employment
4. To explore the contribution of Hyderabad MSME in telangana state

RESEARCH METHODOLOGY:

Research design

The present study is descriptive in nature. It is mainly based on secondary data for the purpose
of analysis and conclusion.

DATA COLLECTION:

Current study is based on secondary data. Several reports from authentic sources have been
studied to know the current scenario of MSME sector. Other secondary data have been
collected from various published sources which represents performance of MSME. Facts and
figures given in these reports have been considered for analysis purpose.

Limitations:

• Irregular supply of raw materials

• Lack of standardisation
• Skilled labour issues
• Under utilisation of capacities
• Lack of modern technology
• Bogus units
 CHAPTER-2
Literature review
REVIEW OF LITERATURE:

INTRODUCTION

A literature review or narrative review is a type of review article. A literature review is a

scholarly paper, which includes the current knowledge including substantive findings, as well
as theoretical and methodological contributions to a particular topic. Literature reviews are
secondary sources and do not report new or original experimental work. A literature review
surveys books, scholarly articles and any other sources relevant to the particular issue, area of
research, or theory and by so doing provides a description, summary, and critical analysis,
purpose and evaluation of these works in relation to the research problem being investigated.

Review

There are number of studies have Been conducted from time to time to understand the different
aspects relating to MSME and role of Government in development of MSME. There is end
number of researchers working on different topics. They have contributed immensely in the
development of that concept in different ways. Therefore, when a person goes for research, it
is required to look at the previous studies. It helps the person who does the research will help
him to do the research work. The researchers should understand the concerned problem in
different ways. Different researchers have used different methods, tools, data analysis to study
the problem and they arrived at the different conclusions. It gives the researchers enough ideas
to understand the different problems and find the research gap and work upon the area which
is not yet touched.

FOLLOWING is literature review:

 1) B. Yerram raju (banker turned economist) 2023

It is necessary that we should have that we should have a periodical census of the
MSME of various sectors like agriculture, artisans, rural developments, technology,
food processing, textiles, power looms, handlooms, are as known as awareness of
mortality of enterprises.

2) Siddiqui (entrepreneur) 2018

During Early growth stages micro, small and medium enterprises need timely and
sufficient capital. MSMEs rely on various sources of finance. Various financial
problems are inadequate and non timely credit, limited knowledge and capital,
collateral security requirements, not sufficient working capital, recovery from debtors
for availing loan from financial institutions excessive paper work is required.

3) Tejas goenka (managing director of tally solutions) 2022

The MSMEs are now ready to adapt new solutions to improve their business processes.
But after the pandemic many things have changed. The MSMEs that they should be
able to work from anywhere. There is also a great focus on automation as there is need
for this

4) Jiten arora ( venture lead of solv and member at sc ventures) 2021

Getting financial inclusion is very important for the development of MSME to look at
the underwriting standards and modify them for the change of new technology. India’s
MSME industries contribution to gdp is around 30% which is at the lower end of the
scale when compared with other countries.
 5) Ajay sahai (Dg and ceo of the federation of Indian export organisation)
2021

The biggest factor going in our favour is the adaptability factor going under
challenging circumstances. MSMEs work under various constraints. Banks don’t give
MSMEs preference unless they have the backing of a government schemes.

6) Pranav kholi (vice president of stage international) 2021

MSMEs have always been labour intensive, whereas in a lot of places, automation
and digitisation is required things are changing we are looking at a lot of things in
terms of automation. We are also looking into R&D, which MSMEs typically don’t
focus on as this sector is overleveraged. MSMEs are looking for stop gap funding.
But that is something banks and financial institutions are not willing to do.

7) K.N.Narashima Murthy 2023

MSMEs deserve a great deal more as most are capital starved and do not have
access to collateral free credit at affordable costs. As the best employing segment
of the economy, one expected that financial ministers should pay greater attention
to this important sector.

8) Rathore & khanna 2021

Percentage of loss and decline in earnings during pandemic the survey results
present a picture of distress among MSMEs where losses amounting to 17% of their
past year sales were reported.

9) Tripathi 2021

The survey conducted by the All India manufacturers organisations of MSMEs

reveal that the self employed MSMEs constituting 35% of the total population do
not have any chances of recovery from adversities thrown open by the pandemic.
They began winding up their units.
10) Chandrakant salunke ( MSME Chamber member) 2011

MSME are now exposed to greater opportunities than ever for expansion and
diversification across the sectors. Indian Market is growing rapidly and indian
entrepreneurs are making remarkable progress in various industries like
manufacturing, precision engineering design, food processing, retails, It and ites
,agriculture and service sectors.

11) Sanjeev anand (banker) 2022

Apart from this, most of the MSME enterprises do not have access to well
researched database whether it pertains to market intelligence or technology. This
information needs to be disseminated proactively And on a regular basis.

12) Ramaswamy (entrepreneur) 2022

The problems faced by the MSMEs (Micro, Small and medium enterprises) have
traditional enterprises with poor support system and little exposure particularly
having in accessing technology and maintaining competitiveness have been
increased in recent years.

13) Sumant kathpalia (indus banker) 2022

The non-availability of institutional finance on affordable and easy terms is seen as

the biggest challenge faced by MSMEs. further adding to the limitations of MSMEs
are lack of formalized contractual relations and the reliance on cash payments

14) Monica chaturvedi. 2023

Micro, small and medium enterprises is that of credit. It is reported that a large
chunk (almost 60% ) of the MSMEs do not borrow from the formal financial sector.
In addition to this, they borrow at higher interest rates from informal sources. It is
due to the lack of sufficient funding that the MSMEs are not able to access the latest
technology and infrastructure. The business volumes of these enterprises mostly
remain low.

15) Dr.rajesh tiwari 2020

The current economic climate is not ideal for Micro, Small and Medium
enterprises, despite the government’s efforts to keep them afloat with stimulus
funds. While there are many efforts the government has been taking to improve the
sector’s financial situation, several issues still need to be addressed.

16) Sumit sinha 2019

MSMEs struggle to obtain financial assistance due to several factors like absence
of collateral, lengthy paperwork, and lack of trust in loan repayment capabilities.
These obstacles remain despite the government’s conscious effort to provide easy
credit line to MSMEs.

17) Satya prakash 2018

majority of the MSMEs in India operate on stale and obsolete technology which
obstructs them from keeping up with the new age world. This is despite the fact,
that India is said to have the third largest pool of technologically trained manpower.

18) C.B. Brave (2010)

In his opinion the MSME catalyst in most of the economies and constitute a major
part of the industrial activity. MSME generally face financial crisis. He foresees
that the MSMEs stock exchange will be a great boon to this sector as it will provide
a wide pool of capital, increased status and credibility and other benefits.
19) Roopa kudva (Md of crisil) 2011

MSME to do a credit rating however it is important to have the credit rating done if
the MSME want to position itself in the lending terms, unfortunately,the 75%
subsidy is available only for the first time/year the MSME gets its rating done
subsequently they have to bear the entire cost next year which is a strain on the
purse strings. Producing a new frame work for ratings MSME is important, because
most would receive low ratings on traditional scales solely because of their small
size. The benchmark used for large corporation have to be abandoned.

20) Vijay kumar 2011

Talking about a few basic issues being faced by the MSMEs sector is lack of
awareness, investment and resource, zero wastage and continuous design
improvement hold the key to survival an growth of MSMEs.
 CHAPTER-3
Theoretical framework
Micro, small and medium enterprises-sized enterprises are a vibrant and growing sector in most
of the economies all around the world. It explains that creating supportive environments for
entrepreneurship and MSMEs development has become a top policy priority in almost every
country around the world. It also claims that there is broad agreement on the merits of devising
policies to enhance The contribution of MSMEs to global trading, since it is widely recognised
that MSMEs are under represented in the global economy. For example, MSMEs typically
contribute some 30 percent of GDP in the developed economies and some 42 percent of total
employment, yet MSMEs contribute only around 49.5 percent of export and even less in terms
of flows of international investment.

The Indian MSME sector is the backbone of the national economic structure. In India also, the
role of micro, small and medium enterprises in the economic and social development is well
established. Especially since the commencement of planning for economic growth, adequate
emphasis has been given on the development of MSMEs by policy makers, politicians and
intelligentsia alike. The multi pronged objectives of increased industrial output, generation of
employment, dispersal of industrial activities across regions and development of
entrepreneurship has been successfully met through the propagation of MSMEs. The MSME
sector is a nursery of entrepreneurship, often driven by individual creativity and innovation.
With around 63.4 million units throughout the geographical expansion of the country, MSMEs
contribute around 6.11% of the manufacturing GDP and 24.63% of the GDP from service
activities as well as 33.4% of India’s manufacturing output. They have been able to provide
employment to around 120 million persons and contribute around 45% of the overall exports
from India. The sector has consistently maintained a growth rate of over 10% about 20% of the
msmes are based out of rural areas, which indicates the deployment of significant rural
workforce in the msme sector and is an exhibit to the importance of these enterprises in
promoting sustainable and inclusive development as well as generating large scale
employment, especially in the rural areas.

Micro, Small and Medium Enterprises (MSMEs) play a vital role in the Telangana economy,
contributing significantly to employment generation, industrial output, and exports.
Hyderabad, being the capital city of Telangana, has a large number of MSMEs that make a
significant contribution to the state's economy. According to the Annual Report 2020-21 by the
Ministry of MSME, Telangana has around 3,26,076 registered MSMEs, out of which 91,096
are in the micro category, 18,750 are in the small category, and 1,651 are in the medium
category. These MSMEs provide employment to around 12.31 lakh people.The MSME sector
in Hyderabad is diverse, with businesses ranging from food processing, textiles,
pharmaceuticals, engineering, and electronics. The city has a well-established industrial
infrastructure that supports the growth of MSMEs. The Telangana government has taken
several initiatives to support the growth of the MSME sector, including setting up of the
Telangana State Industrial Infrastructure Corporation (TSIIC) to provide infrastructure
facilities to MSMEs, launching of the Telangana State Industrial Project Approval and Self-
Certification System (TS-iPASS) for easy clearance of MSME projects, and providing
financial assistance and subsidies for MSMEs.

Central government and state government policies for msme

sector:

• National manufacturing competitiveness Council (nmcc) was set up to energies and

sustains the growth of the manufacturing industry. New promotional package for msme
and focus on accelerating development of clusters.

• A single comprehensive legislation for the promotion, development and enhancement

of the competitiveness of the msme sector-micro, small and medium enterprises
development (msmed) act, 2006 came into effect from October 2006.
• Revised strategy of lending and introduction of newer measures, such as the scheme to
establish small enterprises financial centres (sefc) for strategic alliance between
branches of banks and sidbi located in 388 clusters identified by the ministry of science

• Credit linked capital subsidy scheme for technological up gradation.

• New legislation on limited liability partnership being worked on.

• Promotion and financial support for credit-cum-performance rating in msme sector in

India, to facilitate greater and easier flow of credit from the banking sector to msmes .

• The National commission for enterprises in the unorganised sector (nceus) has been set
up as an advisory body and a watchdog for the informal sector to bring about
improvement in the productivity of these enterprises for generation of large scale
employment opportunities on a sustainable basis, particularly in the rural areas.

• Facilitate of technology transfer the technology bureau for small enterprises (tbse)

• Accelerating initiatives to address various developmental needs for msmes in the 11th
five year plan.

• Guarantee coverage under credit guarantee fund for small enterprises expanded
substantially.

• Merger of the ministry of ssi with the ministry of ari (India at 60 & beyond, 2007).

• Steps taken to discourage delayed payment to msmes (msme 2007-08)

 • Filing of entrepreneurs memorandum by enterprises: in pursuance of section 8 of the
msmed act, 2006, an entirely new process of filing of entrepreneurship memorandum
(em) by micro, small and medium enterprises (msmes) has been put in place.

• Package for promotion of micro and small enterprises (mse) : in order to assist the mses
in fully harnessing their potential by enhancing their competitiveness to face the
challenges of stiff competition and in availing opportunities generated by trade
liberalisation, the Government in its ncmp declared that a “major promotional package”
will be announced for this segment to provide full support in the areas of credit,
technological up-gradation, marketing and infrastructure up-gradation in industrial
infrastructure.

Micro, Small, and Medium-Sized Enterprises (MSMEs) are essential to the Telangana
economy since they generate a large amount of jobs, industrial output, and exports. Hyderabad,
Telangana's capital city, is home to a sizable number of MSMEs that significantly boost the
state's economy. considerably contributing to job creation, industrial output, and exports.
Hyderabad, the state capital, has a considerable number of MSMEs that contribute significantly
to the state’s economy. Telangana has over 3,26,076 registered MSMEs, of which 91,096 fall
into the micro category, 18,750 into the small category, and 1,651 into the medium category,
according to the Annual Report 2020–21 from the Ministry of MSME. 12.31 lakh individuals
are employed by these MSMEs. Hyderabad’s MSME sector is varied, having companies in the
food processing, textiles, pharmaceuticals, engineering, and electronics industries. An
established industrial infrastructure in the city fosters the expansion of MSMEs.

Role of Hyderabad MSMES in Telangana economy

Since the formation of new state Telangana, the msme segment has proven to be a highly
dynamic in telangana economy sector. Msmes produce and manufacture a wide variety of
domestic and national markets. They have helped promote the development and growth of
khadi, village, and coir industries. They have collaborated and worked with the concerned
Ministries, state Governments and stakeholders towards the upbringing of rural areas.
Hyderabad msmes have played very essential role in providing employment opportunities and
they have helped in growth of industrialization with a very low capital cost compared to large
industries. Acting as a Complementary unit to large sectors, The msme sector has enormously
contributes to its socio-economic development.

Msmes also contribute and play an essential role in the state’s development in different areas
like the requirement of low investment, flexibility in operations, mobility through the locations,
low rate of imports, and a high contribution to domestic production.

With the capability and capacity to develop appropriate local technology, provide fierce
competition in domestic and national markets, technology-savvy industries, a contribution
towards creating defence materials and generating new entrepreneurs by providing knowledge,
training and up-gradation through specialized training centers. Hyderabad’s MSME sector is
varied, having companies in the food processing, textiles, pharmaceuticals, engineering, and
electronics industries. An established industrial infrastructure in the city fosters the expansion
of MSMEs.

The msme sector in Telangana contribute 40 gross state domestic product but 30% contribution
is from Hyderabad itself.

Table 1 : below illustrates about number of MSMEs in Hyderabad.

Total number Micro Small Medium

12716 7723 4815 178

Why should Government support MSMEs ?

• MSMEs play a vital role in driving economic growth, promoting entrepreneurship, and
creating employment opportunities

• MSMEs are the biggest job provider, employment is another good reason,. If someone
can be productive by offering a service they become less reliant on the government.
 • Many creative minds evolve and involve out of small or single business

• It promotes self-esteem and self worth.

• Poverty and deprivation are a deterrent to the development of the state.

• Simple Management Structure for Enterprises msme can start with limited resources
within the control of the owner.

• It plays main role in the mission of “make in India.”

Role of Ministry in MSME:

Ministry of micro, small and medium enterprises envisions a vibrant MSME sector by
promoting growth and development of the MSME sector, including khadi and coir industries,
in cooperation with concerned Ministries/departments, state Government and other
stakeholders, through providing support to existing enterprises and encouraging creation of
new enterprises.

The primary responsibility of promotion and development of MSME is of the state government.
However, the Government of India, supplements the efforts of the state government’s through
specialized training centers and various initiatives.

The schemes undertaken by the Ministry of facilitate MSME:

1) Adequate flow of credit from financial institutions / banks

2) Support for technology up-gradation and modernization

3) Integrated infrastructure facilities

 4) Modern testing facilities and quality certification

5) Access to Modern management practices

6) Entrepreneurship development and skill up-gradation through appropriate training

facilities

7) Support for product development, design innovation and packaging

8) Welfare of artisans and workers

9) Assistance for better access to domestic and export markets

10) Clusters-wise measures to promote capacity-building and empowerment of the units

and collectives

Major schemes

I. Scheme for credit and financial assistance to MSMEs

❖ Prime Minister employment generation programme (pmegp)

A credit linked scheme to facilitate participation of financial institutions for Higher credit flow
to micro sector. Its objectives are to generate continuous and sustainable employment
opportunities in rural and urban areas of the country through start ups.

Funds allocated (2021-2022) Rs.1650.00 crores

Expenditure incurred (upto 31/12/21) Rs.1018.50 crores

❖ Credit linked capital subsidy scheme (clcss)

The major objective is to ensure the development of plant and machinery with the state of the
art technology, with or without expansion and also for new MSMEs which have set up their
facilities with appropriate eligible and proven technology duly approved under scheme
guidelines

Funds allocated (2021-2022) Rs.503.28 crores

Expenditure incurred (up to 2021) Rs.438.59 crores

❖ Credit guarantee trust fund for msme (cgtmse)

Credit guarantee fund trust for Micro and small enterprises (cgtmse) is jointly set up by
Ministry of micro, small and medium enterprises (msme) government of India and small
industries development bank of India (sidbi) to catalyse flow of institutional credit to mic⁰ro
&small enterprises credit guarantee scheme was launched to strengthen credit delivery system
and to facilitate flow of credit to msme sector, create access to finance for unnerved and under
privileged making availability of finance from conventional lenders to new generation
entrepreneurs.

Funds allocated (2021-2022) Nil

Expenditure incurred (upto,dec 2021) The approved corpus of rs.7500 already

completed.

❖ Interest subvention scheme for incremental credit to MSMEs

The interest subvention scheme for farmers aims at providing short term credit to farmers at
subsidies interest rate. The policy came into force with effect from kharif 2006-2007. The
scheme is being implemented for the year 2021-22.

Funds allocated (2021-2022) Rs.200 crores

 Expenditure incurred (upto Dec, 2021 Rs.200 crores

II. Schemes for skill development and training

❖ A scheme fir promotion of innovation, rural industries and entrepreneurship
(aspire)

To promote innovation and rural entrepreneurship through rural livelihood incubator

technology business incubator and funds of funds. To establish technology centre network to
promote innovation, entrepreneurship and agro-industry.

Funds allocated (2021-2022) Rs.15.00 crores

Expenditure incurred (upto Dec 2021) Rs. 5.88 crores

❖ Entrepreneurship and skill development programmes (esdp)

Entrepreneur development is the process of improving the skills and knowledge of

entrepreneurs and enhancing the capacity to develop, manage and organise a business venture
by considering the risks involved in it.

Funds allocated (2021-2022) Rs.10.00 crores

Expenditure incurred (upto Dec 2021) Rs.0.63 LAKHS

III. Schemes for infrastructure development

❖ Scheme of fund for regeneration of trade industries (sfurti)
Making traditional industries more productive and competitive by organising the traditional
industries and artisans inti clusters.

Funds allocated (2021-2022) Rs.201.46 crores

Expenditure incurred (upto Dec 2021) Rs.127.41 crores

IV. Scheme for making assistance

❖ Scheme for providing financial assistance to khadi institutions under madam

The market promotion and development assistance Scheme madam has been launched as a
unified scheme by merging different schemes implemented by the khadi sector including
publicity, marketing, market promotion and market development assistance. Further grant will
also be available for construction of khadi plazas. The overall objective of the scheme is to
ensure increased earnings for artisans.

Funds allocated (2021-2022) Rs.150.00 crores

Expenditure incurred (upto Dec 2021) Rs.191.56 crores

V. Scheme for technology up-gradation and competitiveness

❖ Financial support to msmes in zed certification

Zed certification scheme that supports micro, small and medium enterprises to achieve zero
defect and zero effect (zed) manufacturing. It also provides zed assessments for certification
which promotes manufacturing of world class quality products. This scheme supports the make
in India campaign. It is finance by the government of India and falls under the ministry of
micro, small and medium enterprises.

Funds allocated (2021-2022) Rs.51.75

 Expenditure incurred (upto Dec 2021) Rs.28,53300 lakhs

❖ Support for entrepreneurial and managerial development of MSME through

incubators

The main objective of the scheme is to promote emerging technologies and knowledge based
innovation venture that seek the nurturing of ideas from professional beyond the traditional
activities of Micro, Small and Medium enterprises.

Funds allocated (2021-2022) Rs.50.09 crores

Expenditure incurred (upto Dec 2021) Nil

Role of entrepreneurship in msme

The entrepreneur who is a business leader looks for ideas and puts them into effect infostering
economic growth and development. Entrepreneurship is one of the most important inputs in
the economic development of state and msme is the big platform for entrepreneurship. The
entrepreneurs acts as a trigger head to give spark to economic activities by the his
entrepreneurial decisions. Entrepreneurs plays a vital role not only in the development of
industrial sector of a country but also in the development of farm and service sector. There are
various major role played by an entrepreneurs in the economic development of an economy
and msme. This paper studies the major role of an entrepreneurs in growth of the MSME and
challenges faced by them. Major role played by the entrepreneurs for the growth of MSMEs
are as follows:

A. Promotes capital formation

Entrepreneurs Promotes capital formation by mobilising the idle savings of public. They
employ their own as well as borrowed resources for setting up their enterprises. Such type of
entrepreneurial activity leads to value addition and creation of wealth, which is very important
for the industrial and economic development of the state and growth of the micro ,small and
medium enterprises.

B. Creates employment opportunities

Entrepreneurs provides immediate large scale employment to the unemployed which is a

chronic problem of undeveloped nations. With the setting up of more and more units by
entrepreneurs, both on small and large scale numerous job opportunities are created for other.
As time passes, these enterprises grow, providing direct and indirect employment opportunities
to many more . In this way, entrepreneurs play a effective role in reducing the problem of
unemployment in the state which in turn clears the path towards economic development of the
state.

C. Wealth creation and distribution

It stimulates equitable redistribution of wealth and income in the interest of the state to more
people and geographic areas, thus giving benefit to larger sections of the society.
Entrepreneurial activity also generates more activities and give a multiplier effect in the
economy and helps growth of MSMEs.

D. Facilitates overall development

Entrepreneurs acts as catalytic agent for change which results in chain reaction. Once an
enterprise is established, the process of industrialization is set in motion. This unit will
generates demand for various types of units required by it and there will be so many other units
which require the output of this unit. This leads to overall development of an area due to
Increase in demand and setting up more and more units. This way, the entrepreneurs multiply
their entrepreneurial activities, thus creating an environment of enthusiasm and conveying an
inputs for overall development of the area.

E. Family and entrepreneurship

In traditional societies where men work outside the home to earn money and the women to
transmit business idea. The modern structure of family in today’s society and consequently the
women’s role outside the home may result in the emergence of new manifestation of creativity
and innovation in both males and females

Employment opportunities

Msme sector in Hyderabad creates largest employment opportunities for the Telangana
population, next only to agriculture. Msmes not only play crucial role in providing large
employment opportunities at comparatively lower capital cost than large industries but also
helps in industrialization of rural and backward areas, thereby, reducing regional imbalances
and assuring more equitable distribution of national income and wealth. MSMEs are
Complementary to large industries as ancillary units and this sector contributes enormously to
the socio-economic development of Telangana state. The sector contributes significantly to
manufacturing output, employment and exports of the state. In terms of value the sector
accounts for about 33.4% of manufacturing outputs and 48.10% of total exports of the state. It
is estimated to employment of more than 1 corer people in telangana state. There are wide
variety of products ranging from traditional high tech items, which are being manufactured by
35 the msmes in hyderabad. It is well known that the msme sector provides maximum
opportunities for both self employment and wage employment, outside agriculture sector.
Msme sector contributes not only to higher rate of economic growth but also in building an
inclusive and sustainable society in innumerable ways through creation of non farm livelihood
at low cost, balanced regional development, gender and social balance, environmentally
sustainable development and to top it all, recession proofing of economic growth, which the
sector has proven time and again.

CHALLENGES

Challenges faced by MSMEs

i. Problem of skilled man power

ii. Inadequate credit assistance
iii. Irregular supply of raw materials
iv. Absence of organised marketing
v. Lack of machinery and equipment
vi. Absence of adequate infrastructure
 vii. Competition from large scale units and imported materials
viii. Other problems like poor project planning, managerial inadequacies, old and orthodox
designs, high degree of obsolescence and huge number of Bogus concerns etc.

PROBLEMS FACE BY MSME IN HYDERABAD

I. Lack of technical support

II. Lack of training initiative for the entrepreneurs
III. Difficulty in getting the financial support
IV. Inadequate infrastructure support
V. Lack of enterprises in marketing of the product
VI. Absence and non affordability of advanced technology
VII. Severe competition from the national and international players
VIII. Absence of target markets for the products produced
IX. Inadequate support from the banking sector for credit facilities
X. Scarcity of skilled labour and
XI. Inadequate information etc.

Future prospects of msme

1. Employment generation: There are large opportunities in the field of manufacturing and
service rendering of msme's. In the field of retail and manufacturing sectors, MSMEs
are generating different and ample amount of employment.

2. Focus on customer satisfaction: Primarily, msmes manufacturing goods focus on

testing and preferences, liking and disliking of the consumer. But now a days they
 produce goods according to the needs or expectations of the customers. So the msme
can be more customer satisfaction oriented.

3. Minimization of regional imbalances: The msmes will utilise the man power of rural
areas so such areas of nation can equally develop through the running of msme units in
rural areas. So, this is helpful to minimise or remove the regional imbalances.

4. Development of exports: In the international markets, there will be a large demand of

products like Wooden items, other handmade articles etc. So msme have the potential
to improve the export of India

5. Attraction of foreigner investment: The hyderabad msme are the growing sectors and
their growth rate and return on investment is satisfactory. This sector can attract foreign
investment in hyderabad, so their growth rate increasing drastically.
 CHAPTER-4
DATA ANALYSIS AND
INTERPRETATION

Introduction:

DATA ANALYSIS

Data Analysis is the process of systematically applying statistical and/or logical techniques to
describe and illustrate, condense and recap, and evaluate data. Data analysis is a process of
inspecting, cleansing, transforming, and modeling data with the goal of discovering useful
information, informing conclusions, and supporting decision-making. Data analysis has
multiple facets and approaches, encompassing diverse techniques under a variety of names,
and is used in different business, science, and social science domains. In today's business world,
data analysis plays a role in making decisions more scientific and helping businesses operate
more effectively. Data analysis is the process of cleaning, analyzing, interpreting, and
visualizing data using various techniques and business intelligence tools. Data analysis tools
help you discover relevant insights that lead to smarter and more effective decision-making.

We’ll often see the terms data analysis and data analytics used interchangeably. But, there’s a
slight difference between the two.

Data analytics is the overarching discipline and refers to the whole process of data
management: data collecting, storing, organizing, and analyzing. It includes the tools and
techniques used to deep-dive into data, as well as those used to communicate the results ‒ for
example, data visualization tools.

As a term, data analytics predominantly refers to an assortment of applications, from basic

business intelligence (BI), reporting and online analytical processing (OLAP) to various forms
of advanced analytics. In that sense, it’s similar in nature to business analytics, another
umbrella term for approaches to analyzing data. The difference is that the latter is oriented to
business uses, while data analytics has a broader focus. The expansive view of the term isn’t
universal, though: In some cases, people use data analytics specifically to mean advanced
analytics, treating BI as a separate category.

Data analytics initiatives can help businesses increase revenue, improve operational efficiency,
optimize marketing campaigns and bolster customer service efforts. Analytics also enable
organizations to respond quickly to emerging market trends and gain a competitive edge over
business rivals. The ultimate goal of data analytics, however, is boosting business performance.
Depending on the particular application, the data that’s analyzed can consist of either historical
records or new information that has been processed for real-time analytics. In addition, it can
come from a mix of internal systems and external data sources.
Essential steps for data analysis:

When we talk about analyzing data

There is an order to follow in order to extract the needed conclusions. The analysis process
consists of 5 key stages. We will cover each of them more in detail later in the post, but to start
providing the needed context to understand what is coming next, here is a rundown of the 5
essential steps of data analysis.

• Identify: Before you get your hands dirty with data, you first need to identify why you
need it in the first place. The identification is the stage in which you establish the
questions you will need to answer. For example, what is the customer’s perception of
our brand? Or what type of packaging is more engaging to our potential customers?
Once the questions are outlined you are ready for the next step.

• Collect: As its name suggests, this is the stage where you start collecting the needed
data. Here, you define which sources of data you will use and how you will use them.
The collection of data can come in different forms such as internal or external sources,
surveys, interviews, questionnaires, and focus groups, among others. An important
note here is that the way you collect the data will be different in a quantitative and
qualitative scenario.

• Clean: Once you have the necessary data it is time to clean it and leave it ready for
analysis. Not all the data you collect will be useful, when collecting big amounts of data
in different formats it is very likely that you will find yourself with duplicate or badly
formatted data. To avoid this, before you start working with your data you need to make
sure to erase any white spaces, duplicate records, or formatting errors. This way you
avoid hurting your analysis with bad-quality data.

• Analyze: With the help of various techniques such as statistical analysis, regressions,
neural networks, text analysis, and more, you can start analyzing and manipulating your
 data to extract relevant conclusions. At this stage, you find trends, correlations,
variations, and patterns that can help you answer the questions you first thought of in
the identify stage. Various technologies in the market assist researchers and average
users with the management of their data. Some of them include business intelligence
and visualization software, predictive analytics, and data mining, among others.

• Interpret: Last but not least you have one of the most important steps: it is time to
interpret your results. This stage is where the researcher comes up with courses of action
based on the findings. For example, here you would understand if your clients prefer
packaging that is red or green, plastic or paper, etc. Additionally, at this stage, you can
also find some limitations and work on them.

These are the basic steps which are essential for data analysis .

INTERPRETATION

Interpretation means trying to understand the processed data and giving a proper explanation
of the give data. It will help the reader to understand the given data in a more efficient manner
to ensure that all the information is correct and understanding the issues and to find out what
are its issues and will help in taking up solutions for the concerned problem and it also plays
an important role in decisions making.

Interpretation is also helpful for better understanding of the graphical data it simplify the
difficult data to understand it in a much easier way as it is in theory we can understand it with
just by reading it.

RESEARCH METHODOLOGY:

Research design

The present study is descriptive in nature. It is mainly based on secondary data for the purpose
of analysis and conclusion.
Data collection

Current study is based on secondary data. Several reports from authentic sources have been
studied to know the current scenario of MSME sector. Other secondary data have been
collected from various published sources which represents performance of MSME. Facts and
figures given in these reports have been considered for analysis purpose. The data was
qualitatively analysed and presented in the form of tables, graphs and charts using Microsoft
excel.

DATA ANALYSIS AND INTERPRETATION:

Different schemes offered by msme

 1) ZED CERTIFICATION SCHEME:-

ZED certification scheme that supports micro, small and medium enterprises to achieve zero
defect and zero effect manufacturing. It also provides Zed assessments for certification which
promotes manufacturing of world class quality products. This scheme supports the make in
India campaign. It is financed by the Government of India and falls under the ministry of micro,
small and medium enterprises.

OBJECTIVES:

The scheme aims at enabling MSMEs towards manufacturing quality products by inculcating
Zero Defect & Zero Effect practices, to safeguard the continuous improvement thereby
supporting the Make in India initiative.

KEY BENEFITS:

• Subsidy on cost of ZED certification – Joining Reward of Rs. 10,000. Subsidy of 80-
60-50% for Micro, Small & Medium Enterprises.
• Additional subsidy – 10% for Women/SC/ST owned MSMEs OR MSMEs in
NER/Himalayan/LWE/Island territories/aspirational districts (5% for MSMEs which
are also a part of the SFURTI OR MSE-CDP)
• Financial Assistance up to 75% of the total cost of Testing/Certification, with the
maximum ceiling of subsidy being INR 50,000/-.
• Handholding Support up-to INR 2 lakhs for consultancy and INR 3 lakh for technology
upgradation for all ZED certified MSMEs. Availability of graded incentives post ZED
Certification

SCHEME AVAILABLE FOR:

All existing entrepreneurs registered with the UDYAM registration portal

DETAILED INFORMATION:
 • Enable and Encourage MSMEs for utilising latest technology to manufacture quality
products. Constant upgradation in process of achieving higher productivity with least
damage to environment.
• Advance an Ecosystem for Zero Defect Zero Effect Manufacturing in MSMEs.
• Promoting adaptability of quality and identifying the efforts of successful MSMEs.
• Increase public awareness on demanding Zero Defect and Zero Effect Products through
the ZED Rating and Grievance Redressal Portal.

2) A SCHEME FOR PROMOTION OF INNOVATION, RURAL INDUSTRIES

AND ENTREPRENEURSHIP (ASPIRE)

To promote innovation and rural entrepreneurship through rural livelihood incubator,

technology business incubator and funds of funds. To establish technology centre network to
promote innovation, entrepreneurship and agro-industry.

OBJECTIVES :

• The scheme aims at setting up a network of incubation and technology centres to

promote innovation and entrepreneurship to strengthen the competitiveness of MSME
sector predominantly in the rural and underserved areas,
• To promote innovation and accelerate entrepreneurship by imparting skill development.
• Programs for creating wage/self-employment opportunities in the agro rural sector.

KEY BENEFITS:

• Setting up Technology Business Incubators (TBIs) and Livelihood Business Incubators

(LBIs) to skill youths for own incubation and enterprises.
• Maximum INR 1 cr. To Government agencies and maximum INR 75 Lakh to private
agencies for procuring plant and machinery.
• Maximum INR 1 cr. Given to new Government and Private agencies as operational
expenditure support towards manpower cost, running incubation and skill development
programs.
SCHEME AVAILABLE FOR:

• Any agency/institution of Government of India/ State government or existing training

centres under Ministries/Departments of Government of India/State Government,
Industry Associations, Academic Institutions.
• Any not-for-profit private institutions with experience in successfully executing
incubation and/or skill development programs may be eligible to set up an LBI.

DETAILED INFORMATION:

• LBIs are set up to train/skill youths in various vocations/ fields primarily in agro-rural
space.
• Generate employment opportunities by facilitating formal, scalable micro-enterprise
creation in the agro-rural sector.
• Skill and Re-skill unemployed, existing self-employed/ wage earners in new
technologies
• Providing skilled human capital to nearby industrial clusters and promote innovations
for strengthening the competitiveness in the MSME sector.
Financial support to msmes from banks, Government of India and Government of
Telangana to MSME

3) FINANCIAL SUPPORT FROM BANKS

Credit Guarantee Trust Fund for Micro & Small Enterprises (CGT MSE)

Ministry of Micro, Small and Medium Enterprises and Small Industries Development Bank of
India (SIDBI) together established the Credit Guarantee Fund Trust for Micro and Small
Enterprises (CGTMSE). CGTMSE is established in order to implement a credit guarantee
scheme for MSMEs.

The Government of India and SIDBI contribute to the corpus of this scheme. The whole idea
behind this trust is providing financial assistance to the small and medium industries without
any third-party guarantee or collateral. The guarantee coverage under this scheme ranges from
85% for Micro Enterprise (up to Rs 5 lakh), 75% for others and 50% for retail activity.

Eligibility – Both existing and new enterprises are eligible under the scheme. The candidates
meeting the eligibility criteria may approach banks or financial institutions and select Regional
Rural Banks which are eligible for getting assistance under this scheme.

Nature of Assistance – The guarantee cover available under the scheme is to the extent of
50%/75%/ 80% or 85% of the sanctioned amount of the credit facility. For micro-enterprises
up to 5 lakhs, the extent of guarantee cover is 85%.

The extent of guarantee cover is 50% of the sanctioned amount of the credit facility for credit
from 10 lakhs to 100 lakhs per MSME borrower for retail trade activity. In case of default, the
trust settles the claim up to 75% of the amount in default of the credit facility, which is extended
by the lending institution for credit facilities up to 200 lakh.
 Bank Name Interest rate

Allahabad Bank At the discretion of the bank

Oriental Bank of Commerce 10.70% p.a. onwards

Andhra Bank At the discretion of the bank

Central Bank of India 11.25% p.a. onwards

Indian Bank 9.75% p.a. onwards

Punjab and Sind Bank 9.95% p.a. onwards

Punjab National Bank At the discretion of the bank

State Bank of India 7.65% p.a. onwards

Syndicate Bank At the discretion of the bank

UCO Bank 8.85% p.a. onwards

Union Bank of India At the discretion of the bank

United Bank of India 10.25% - 16.25% p.a.

Micro, Small, and Medium Enterprises can avail MSME loans for the expansion of businesses
or for setting up new enterprises. The interest rates on MSME loans start at 7.65% p.a. The
loan amount sanctioned ranges from as low as Rs.50,000 and can go up to a few crores. On the
basis of the sanctioned loan amount, the loan repayment tenure can go up to 15 years.
 Sector Micro Small Medium Total
Manufacturing 22.4 12.1 48.7 83.2
Trade 14.3 12.1 36.3 62.7
Other services 11.3 20.9 67.8 100

table 1: contribution of banks by providing loans and credit facilities to MSMEs

Chart Title
120

100

80

60

40

20

0
Manufacturing Trade Other services

Micro Small Medium Total

Fig 1: contribution of banks on MSME

Interpretation: from the above table 1 tells us about banks in hyderabad provides credit for
msmes. In manufacturing enterprises total credit is given is 83.2 percent, 62.7 is total credit is
given for trading companies and 100 percent is given for other services like, it sector and
services
 4) GOVERNMENT OF INDIA BUDGET FOR MSME SECTOR

Year Budget alloted (in crores)

2019-2020 7011

2020-2021 7572

2021-2022 15700

2022-2023 15629

2023-2024 22138

Table 2 Government of India budget for msme sector

Fig 2.1 Budget alloted for msme sector by Government of India

Budget alloted (in crores)

25000

20000

15000

10000

5000

0
2019-2020 2020-2021 2021-2022 2022-2023 2023-2024
 Budget alloted (in crores)

2019-2020 2020-2021 2021-2022 2022-2023 2023-2024

Fig2.2 it is a chart showing about the budget of msme sector

Interpretation: table 2 and figures 2.1 and 2.2 tell us about how government from 2019 – 2020
the budget for msme sector by Government of India is rapidly growing and it increased rapidly
around 42% in 2023. This is first time this large amount of money is alloted by Government of
India for msme sector which will help msme to compete with big companies as well
 5) GOVERNMENT OF TELANGANA BUDGET FOR MSME SECTOR

Year Budget alloted (in crores)

2019-2020 2294

2020-2021 2415

2021-2022 3019

2022-2023 3552

2023-2024 4037

Table 3 Government of Telangana budget for msme sector.

Budget alloted (in crores)

4500

4000

3500

3000

2500

2000

1500

1000

500

0
2019-2020 2020-2021 2021-2022 2022-2023 2023-2024

Fig 3.1 the graphs tells us about the growth of budget for msme by Government of
Telangana.
 Budget alloted (in crores)

2023-2024

2022-2023

2021-2022

2020-2021

2019-2020

0 500 1000 1500 2000 2500 3000 3500 4000 4500

Fig 3.2 it is representing the growth of budget for msme sector in Telangana

Interpretation: table 3 and fig 3.1 and 3.2 shows us significantly growing budget for msme
by Government of Telangana from 2019 to 2023 budget is rapidly growing and which will also
help in growth of Telangana’s economy

6) UNDER PMEGP (PRIME MINISTER EMPLOYMENT GENERATION

PROGRAMME), the estimated employment generated in msme sector
 Year Number of people (in thousands)

2017-2018 3870

2018-2019 5870

2019-2020 5330

2020-2021 5950

2021-2022 11900

Table 4 estimated employment in msme sector

Number of people (in thousands)

14000

12000

10000

8000

6000

4000

2000

0
2017-2018 2018-2019 2019-2020 2020-2021 2021-2022

Fig 4.1 estimated employment generation

Interpretation: The msmes sector of Telangana State Contributes 40%of total

employment in the state it is becoming second largest after agriculture. Table 4 and fig 4.1
shows the growth of employment in msme sector

7) EMPLOYMENT SHARE BY GENDER

 Sector Female (in Male (in Total
thousands) thousands)
Micro 13700 36150 49850
Small 12740 48454 61194
Medium 7800 25000 32800
Total 34240 109604 143844

Table 5 employment Share by gender

Figure 5.1 employment Share by gender

Micro Small Medium Total

Interpretation : table 5 and fig5.1 illustrates the employment created by msme according
to gender, in hyderabad district. Msme have created 40% of Telangana and 30% is only
from hyderabad. Its is observed 76% of males Share of employment and 24 % of female
Share of employment

8) THE CONTRIBUTION OF HYDERABAD MSME TO TELANGANA GSDP

Year Share in telangana economy

in (percentage)
 2017-2018 29.5
2018-2019 29.9
2019-2020 27.4
2020-2021 28.7
2021-2022 28.9
Table 6 the contribution of the hyderabad msme to Telangana economy

Share in telangana economy in (percentage)

30.5
30
29.5
29
28.5
28
27.5
27
26.5
26
2017-2018 2018-2019 2019-2020 2020-2021 2021-2022

Fig6.1 the contribution of Hyderabad MSME to Telangana economy

Interpretation: The table 6 and fig 6.1 illustrates the contribution of Hyderabad MSME to
GSDP of Telangana from 2017 to 2019 it was very hight about 30% but due do covid-19 in
2020 it fell but didn’t go below 25%
 CHAPTER-5
FINDINGS,CONCLUSION AND
RECOMMENDATIONS
FINDINGS AND SUGGESTIONS

1) The Share in percentage of MSME in Gross State Domestic Product (GSDP) is found
to be increasing over a period of time from 2017-2019 . Later the percentage has been
declined for 2 years i.e. 2020- 2022. The Share percentage of GSDP is found to be good
as a benchmark is increasing from 25%.

2) The Share percentage of msme in GSDP is found to be gradually increasing and

decreasing over the period of time due covid-19 virus.

3) Under prime minister’s employment generation programme, employment generation is

found to be increased suddenly from in three year of . This
has been recorded as the major change in generation of employment.

4) Msme have very good policies with which it is growing rapidly. According to the data
collected, the Share percentage has been improving year by year. Therefore, msmes
have good scope and Share percentage.

5) There are various credit facilities available for msme sector. Some of them have their
own benchmark in its Share percentage.
 6) There are also an another category in creation of employment that is gender. Males have
high rate of Share percentage in employment generation creation but females also have
a good Share percentage in employment creation by MSMEs compared to other sectors

7) Hyderabad msme have more number of MSMEs in telangana state. Msmes contribute
40% of Telangana economy but hyderabad itself contribute s 30% .

CONCLUSION

The micro, small and medium enterprises contribute to the advancement of economy of
Telangana state in various ways, such as creation of employment opportunities for the people,
providing good service at affordable prices by offering innovative solutions and sustainable
development of the states economy as a whole. Msme in hyderabad face a number of problems
absence of adequate and timely banking, finance, non availability of suitable technology,
ineffective marketing due to limited resources and non availability of skilled manpower

The sector also contributes significantly to employment, manufacturing output. It is estimated

that hyderabad msme contribute 30% of total states economy. To make this sector to become
more vibrant and significant player in development of Telangana economy, both the central
and state government should take various initiatives.

RECOMMENDATIONS

From the findings of the study, we recommend the following as measures to help the MSME
function well in order to contribute its quota to state’s as well as countries development

1) Since the majority of MSME operate in hyderabad, the Government should provide
reliable access to infrastructure such as electricity and water in rural areas where there
are less MSMEs.

2) Access to credit is still a problem faced by MSMEs especially those in the rural. The
government should therefore embark on aggressive education and sensitization
programme to increase the awareness of the various available source of funding
3) There should be ground level works for the MSME to be able to compete big
companies.

4) Since most of the small scale industries depend heavily on raw materials, the
Government should provide subsidy or remove charges on import of raw materials.