One-day International Conference on ‘Economic Advocacy for Micro, Small and Medium Enterprises: Post COVID-19’ organized by the Sambhram Academy of Management Studies, School of Management, Bengaluru, Karnataka, recently. More than twenty-five research papers presented by authors from various countries. Speakers from different countries addressed the audience and deliberated on the topic. During Inaugural Function, Prof K.C. Mishra, Principal of the Institute gave an introductory note on MSMEs and its contribution to the economy during COVID-19 and also expressed that this burning situation gave a thought to organizing the event. He welcomed the audience on behalf of Sambhram Academy of Management Studies, School of Management.
Ms. Rema Narayanswamy introduced Prof Zuraidah Sanusi, Director, Institute of Leadership Development, University Technology, Malaysia, and welcomed her to deliver the Theme Address. Prof Zuraidah Sanusi thanked the School of Management for giving her the opportunity and started her presentation on ‘Business and Economic Challenges Post COVID-19: Promoting Greater Resilience in SMEs’. She gave an outlook on the world of business due to COVID–19 and said that COVID-19 affected all the developed and developing economies. It not only affected the industry but also changed the culture. MSMEs are the backbone of Malaysia which covers 98.5% of business establishments. They rely a lot on SMEs and have contributed 38.9% share of GDP, 17.9% share to exports, and 48.4% share to employment in Malaysia. MSMEs in the agriculture industry faced many challenges during COVID -19.
Mr. Niraj K Verma, Chief General Manager, NABARD, Karnataka Regional Office, Bangalore who was the Chief Guest deliberated on the ‘Importance of MSMEs to Indian Economy’ and also highlighted its shortcomings in the context of the Indian Economy. MSMEs account for 95% share of the Indian Economy and employ 110 million people. Many enterprises had to down their shutters permanently or temporarily reduced the labor force while coping
The Government of India should focus on the development of MSME clusters for resource optimization and policy framework regarding food processing, textiles, electronic, and farm products. The Uttar Pradesh Government has come out with ‘One District One Product’ for the MSME sector and now all attempts are being made to replicate the same in other States too and States are also giving importance to the cluster development approach. It has also come out with distinct schemes like Guaranteed Trust Fund on Micro and Small Firms, Credit-Link Capital Subsidies for Technology Up-Gradation; Micro and Small cluster development scheme for fund generation of traditional industries, and scheme for promotion of innovation, rural industries, and entrepreneurship. The government also has recently launched the PLI scheme (Production Linked Incentive) which will help the country to become Manufacturing Hub in the World. The Government and all the stakeholders are trying to strengthen the accessibility of institutional charters for the MSME sector.
Recently, the Indian Government announced the inclusion of retail and wholesale trade with MSMEs to strengthen the sector. Khadi and Village Industries Commission have secured trademark registration in three countries namely: Mexico, UAE, and Bhutan so that its brands can be recognized globally and the Government of India allocates funds to boost this sector expecting rapid growth in the future. NABARD which is an apex organization for ensuring credit flow to rural areas is trying to encourage the rural people to set up hall for producer companies. It has also launched various skill development programs to bridge the rural and urban gaps.
The Guest of Honor, Mr. G R Akadas, Director, IEDS, MSME Development Institute, Ministry of MSMEs, Government of India, Bangalore briefed about the delayed payments act in MSMEs. There is a shortfall of skilled labor in the market and the Government is focusing to train labors through various NGOs and institutions. Government is selecting some clusters and turning them into apprenticeship training centers which are already happening in Karnataka with the help of Ministry of Skill Development. with closure.
The Chairperson, Prof. Kaklali Mukhopadhyay, Professor, Gokhale Institute of Politics and Economics, Pune and Adjunct Professor and Senior Fellow, Department of Agricultural Sciences, McGill University, Montreal, Canada observed the growth of MSMEs over the years while there is stability in the employment generated and sustained growth. Its contribution to GDP and manufacturing output has continued to decline over the past ten years leading to a decline in productivity levels primarily in the micro-enterprises because of a lack of options having access to finance, leading to lower efficiency and global competitiveness. She presented her work on the ‘Impact of COVID-19 on MSMEs’
Professor Arup Mitra, the next panelist, shared his findings on the informal sector and began by reflecting on concerns in the context of large-scale manufacturing that will help us in contextualizing the role of MSMEs appropriately. He presented the relationship between productivity and employment and how capital-intensive technology grows very fast
Prof B K Sahoo, the last panelist, shared data on firm size and employment distribution in small firms. He said that probably we are romanticizing that small is beautiful in terms of MSMEs. He shared a database that female firm owners are more prevalent in agriculture and manufacturing as compared to retail, services, and infrastructure.
