LEGAL ISSUES RELATING TO MICRO, SMALL AND MEDIUM ENTERPRISES

Abstract

In the present scenario of business, small and medium enterprises have been accepted as the engine of growth for promoting equitable development. The MSME’s also have the vital role in Dispersal of industries and generation of employment opportunities. The MSME’s are providing job more than 6 crore people. The MSME sector is contributing 8% of countries GDP, 45% of manufacture and 36% its exports. The MSME’s sector has consistently registered higher growth rate compare to the overall industrial sector. The distribution of MSME’s in all over India is not equal because of unavailability of raw materials, unawareness or lack of entrepreneurial skills development and lack of support of financial and technical assistance from concerning local authorities at district or state and central level. The Unavailability of adequate and timely credit facility, high cost of credit, lack of modern technology, no research and innovation, insufficient training and skill development, complex labor laws are the main problems of the MSME’s. Although, there are various opportunities are available in the development of MSME’s. There must be a detailed survey and research to know the problem and difficulties of MSME’s so that a rapid growth can be attained.