BHUBANESWAR: In its study titled ‘Revival & Development of MSMEs in Odisha’, the MSME Export Promotion Council (MSME EPC) has suggested a five-point strategy to boost and help nearly 25 per cent of the 5.36 lakh ailing micro, small and medium enterprises in the state.
MSME EPC chairman, DS Rawat said, “The five-point strategy has been recommended underlining the need for aligning factors in the development targeting systemic reorientation to ensure coverage of a diverse pool of MSMEs. At present, there are over 5,35,910 establishments in Odisha (59.48 per cent in rural and 40.52 per cent in urban areas) with investment of Rs 25,655 crore providing jobs to skilled, semi-skilled and unskilled persons. Therefore, there is an urgent need to help nearly 25 per cent enterprises which are struggling for survival.
The suggested strategy includes customised interventions specific schemes for new age companies, manufacturing, services, formalisation through Udhyam registration, financing, risk mitigation, and micro cluster scheme. Moreover, it has also suggested introduction of single window payment system, self certification, a delegation of powers downward, and setting up of specialised start-up centres housing product testing facilities, fab labs, maker labs, assembly facilities, etc on a priority basis.
The council has recommended innovation funding schemes, equity for start-ups, equitable financing to MSMEs through NBFCs and banks with support from fintech, and direct lending to MSMEs through state-sponsored institutions.
The state government should create a platform that helps aggregate raw materials and experts; help micro, small and medium units connect with large buyers, and public and private vendors for shared services and provide access to space capacity available with MSMEs. The state should support this by creating an improved mechanism to monitor the adherence to the purchase preference policy of the government, and develop a mechanism to capture data on both demand and supply of labour, said the study.
Rawat said “A typical entrepreneur, particularly in the micro and small category is best equipped to operate the business. However, business is a sum of many parts and, therefore, the state’s MSME department should look at targeted, sectoral interventions in which specific sectoral plans are made to train entrepreneurs based on their needs.”