Q.State any three major problems faced by MSMEs.

Despite their contribution to the economy, MSMEs cannot realise their full potential because their small size and scale expose them to several recurring problems. …

MSMEs cannot realise their full potential because of problems tied to their small size and scale. Any three:

• Finance — One of the severest problems. They start with a small capital base, often lack the creditworthiness to raise money from capital markets, depend on local moneylenders (who may exploit them), and struggle for working capital; banks will not lend without collateral, guarantees or margin money that many cannot provide.
• Raw materials — Procurement is difficult. Scarce materials force a choice between compromising quality or paying high prices; bargaining power is low because they buy in small quantities and cannot risk bulk buying for lack of storage. …