In any country, the micro-, small, and medium enterprises (MSME) provide multi-faceted support to the economy. India comprehended the rewards of the MSME game and started a dedicated Ministry of MSME back in 2007.

MSME is an economic boon for the following reasons:

  1. The MSME sector employs over 50 million people in India which is 69% of the working population. This makes MSME, the second largest employer in the country.
  2. It contributes to 58% of the country’s GDP.
  3. Expertise and technical knowledge is rarely a requirement for the MSME hires.
  4. MSMEs have a wide range of employment prospects.
  5. They cover more than 45% of India’s overall export.


India houses over 55 million MSME, yet only 20% of them are formally financed. A Government-regulated credit structure is called Formal Finance. The following are the key reasons for the nonformal financial drill slaughtering India’s MSME growth prospective.

  1. The process of registration and loans are yet to be simplified by the Government.
  2. Most of the Indian MSME owners are unschooled and hence unaware of the MSME policies. They often find the process complicated.
  3. Over 47 million MSME are unregistered in India, lacking the chance to avail formal financing.
  4. Financial institutions have a low-risk appetite.

Download this document to learn the step-by-step approach for starting an MSME in India.

How does SHAPE facilitate MSME growth?

  1. We train women in income generation skills. In FY 2019-2020, more than 50 women were trained and employed through our WoCTAD.
  2. We create women entrepreneurs. Read – Farzana, the modern slave to know how we identify underprivileged women and build India’s economy.

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