Strengthening medium enterprises can act as a catalyst for the overall growth of Micro, Small, and Medium Enterprises (MSMEs) .Niti Aayog recently publish a post title ” designing a policy for Medium enterprise ” praposing a dedicated concessional credit scheme & reform to boost India’s Medium sized enterprises with investment in plant and machinary up to Rs 125 crore & annual turn over Rs 500 crore ..
ways to regulation :
- Addressing the “Missing Middle”: Medium enterprises often bridge the gap between smaller MSMEs and large, formal businesses . By strengthening medium enterprises, the entire MSME ecosystem benefits from a more robust structure .
- Fostering Innovation and Technology Transfer: Medium enterprises can play a key role in driving innovation and technology adoption within the MSME sector . They are often better positioned to invest in new technologies and processes, which can then be transferred to smaller businesses .
- Enhancing Market Access: Strong medium enterprises can help MSMEs access new markets, both domestically and internationally . They can act as intermediaries, providing smaller businesses with access to distribution networks and supply chains .
- Improving Access to Finance: Medium enterprises often have better access to finance than smaller MSMEs . By strengthening medium enterprises, it can lead to increased investment in the broader MSME sector, including providing financing to smaller businesses .
- Building Capacity and Skills: Medium enterprises can provide training and mentorship to smaller MSMEs, helping them improve their business management skills and operational efficiency . This can lead to increased productivity and competitiveness across the sector .
- Strengthening the Support Ecosystem: Strengthening medium enterprises contributes to a more robust MSME support ecosystem . This includes creating a more favorable regulatory environment, improving access to business development services, and fostering collaboration between different actors in the ecosystem .
In conclusion, strengthening medium enterprises can act as a catalyst for MSME growth by addressing the “missing middle,” fostering innovation, enhancing market access, improving access to finance, building capacity, and strengthening the support ecosystem .for economy news click www.eminentnews.com
