The presentation discusses the various issues related to production in Micro,Small and Medium Enterprises and offers suggestions to resolve them.

1. Various Issues Related to
Production In Micro,Small and
Medium Enterprises
Presented by:
Kanchan Prasad
Semester III (MBA – M52)
MONIRBA, University of Allahabad

2. Issues And Challenges For MSMEs
The development of small-scale
industries is hampered by a diversity of
problems.
MSMEs face several challenges in the
fields of production, marketing, finance
and human resources management.

3. Issues Related To Production In MSMEs
The most important production issues are as
follow:
●Poor quality of goods
●Raw material procurement
●Transportation and connectivity
●Machinery and equipments
●Government policies and regulations
●Location
●Technology obsolescence

4. Issues Related To Production In MSMEs
Tend to produce poor quality of goods
The problem is to maintain and improve quality
of production.
Raw material procurement
●Non-availability of quality raw materials on a
timely basis in an adequate quantity.
Suggestions- some of the enterprises can start
raw material manufacturing together.

5. ●No benefits of bulk buying
Suggestions- since individual enterprise could
not take benefits of bulk buying so similar type
of enterprise should purchase products in bulk
amount.
To reduce raw material shortage in MSMEs
National Small Industries Corporation (NSIC)
and State Small Scale Industries Development
Corporations are involved in making efforts for
providing some raw materials to MSME sector.
Issues Related To Production In MSMEs

6. Issues Related To Production In MSMEs
Transportation and connectivity
●High cost of fuel.
●Bands and strikes called by transporters.
●Bad conditions of the roads.
●Exploitation by the goons in the form of
un-authorized toll taxes.
Suggestions- Near by all MSME unite together
and force on government to give facilities of
road and transportations.

7. Issues Related To Production In MSMEs
Machinery and equipments
●Use of traditional machines causes Low
productivity.
● Maintenance cost .
●High cost of modern machines and
equipments.
Suggestions: they can take modern
machines on lease or EMI.

8. Government policies and regulations
●Labour laws of the state.
●Laws of land acquisition.
●Import limit for certain raw materials.
●Pollution regulation.
●Political interference.
Location
●Availability of land, water, power, skilled
labour .
●Consumption pattern of population.
●Climate of the place.
Issues Related To Production In MSMEs

9. Issues Related To Production In MSMEs
Technology obsolescence
●Hesitant to invest in technology.
●Low awareness of benefits of technology
●lack of broadband connectivity
Suggestion: small businesses which
successfully adopted technology should be
shown as “success stories”. And Government
should take initiatives to increase broadband
connectivity.

10. Conclusion
MSME can grow if they utilizes all the
available resources and government
schemes along with follows our
suggestions.

11. THANK YOU