Since its inception, the Micro, Small and Medium Enterprise (MSME) registration initiative in India has been a beacon of hope for millions of entrepreneurs. With over 5.70 crore registrations to date, this movement has generated 24.14 crore jobs, providing livelihoods and contributing to economic growth. However, amidst this success, a sobering statistic emerges: 61,000 registered MSMEs have shut down.
Have we ever paused to ask why? Why do so many promising enterprises close their doors, and what can be done to prevent it? Entrepreneurship in India, while full of potential, faces numerous challenges, including limited access to finance, inadequate infrastructure, and a lack of skill development and business acumen.
This is where the initiatives of the Entrepreneurship Development Institute of India (EDII) play a crucial role. EDII has been actively promoting and educating entrepreneurs across India to support the growth of their MSMEs. WeAct, one such initiative by EDII, focuses on empowering women entrepreneurs by connecting them to the market, helping them scale up their businesses.
At WeAct, we understand that businesses fail due to challenges such as lack of handholding support, improper business planning, and insufficient empowerment. That’s why we believe that our various workshops should go beyond just registration and financial assistance; WeAct equips women entrepreneurs with the knowledge, tools, and confidence they need to build and sustain successful ventures.
The Significance of MSMEs
MSMEs are the backbone of India's economy. They create jobs, empower rural communities, and promote innovation. Beyond their economic impact, MSMEs often serve as lifelines for families and communities, driving local development.
However, despite their potential, many MSME businesses struggle due to barriers that hinder their growth. At WeAct, we recognise these obstacles and actively provide solutions to empower entrepreneurs so they can thrive within the framework.
Understanding the Challenges
The reasons behind many enterprise closures are multifaceted. Some of the common barriers include:
- Lack of a Robust Business Plan: Many enterprises begin without a clear strategy, making it difficult to scale and navigate challenges.
- Limited Access to Finance: Without adequate capital, sustaining operations and expanding becomes difficult.
- Market Exposure: Entrepreneurs in smaller towns often face challenges in reaching larger markets.
- Operational Inefficiencies: Issues such as outdated technology or supply chain disruptions can limit growth.
While these challenges may seem daunting, WeAct helps its entrepreneurs face and overcome them, ensuring they have the necessary tools and strategies to sustain their businesses and grow under the MSME initiative.
The Role of WeAct in Empowering Entrepreneurs
At WeAct, we believe that every entrepreneurial journey is built on three essential elements: Aspire, Inspire, and Perspire. These elements are to support and empower entrepreneurs at every stage of their journey.
Aspire represents the dreams and ambitions that fuel the entrepreneurial spirit of WeAct members. At WeAct, we encourage our members to dream big and set ambitious goals. We believe that a clear vision and unwavering determination are the first steps toward achieving greatness. Through energizer workshops and mentorship programmes, and goal-setting exercises, we help entrepreneurs articulate their visions and map out a path to success.
Inspire embodies the power of storytelling and community. We recognise that sharing success stories and learning from others' experiences can ignite passion and motivation. WeAct fosters a supportive community where our women entrepreneurs can connect, share their journeys, and inspire one another. WeAct events, webinars, and online workshops provide platforms for women entrepreneurs to showcase their achievements, exchange ideas, and find inspiration in each other's successes.
Perspire emphasises the importance of hard work, perseverance, and actionable strategies. We believe that success is not just about having a great idea, but also about putting in the effort to make it a reality. WeAct offers a range of initiatives designed to equip entrepreneurs with the skills and resources they need to thrive. Our energizer workshops cover essential topics such as marketing, finance, and operations. Market access connects entrepreneurs with potential customers and partners, while networking opportunities create valuable connections that can lead to business growth.
WeAct bridges the gap between challenges and opportunities. We understand that entrepreneurship is a journey filled with ups and downs, and we are here to provide guidance, resources, and encouragement every step of the way.
WeAct Solutions to Overcome Barriers
To help WeAct members’ MSMEs sustain, WeAct focuses on the following services:
- Market Access: Providing platforms like exhibitions and trade fairs to connect WeAct members with customers and buyers.
- Access to Finance: Identifying the appropriate schemes and policies tailored for rural women entrepreneurs and providing guidance on how to approach and secure funding through these programs.
- Networking Opportunities: Building communities of entrepreneurs who can support and learn from one another. Networking helps entrepreneurs gain more orders and recognition.
- Product and Business Development: Helping entrepreneurs refine their products with professional packaging and branding elements, improving visibility and efficiency.
- Mentorship and Workshops: Offering guidance on creating robust business plans and navigating challenges.
Conclusion
At WeAct, we support our women entrepreneurs to overcome these challenges by providing the guidance and resources they need to build sustainable businesses.
With a clear vision, robust business planning, and continuous effort, WeAct members can scale their businesses. WeAct is here to empower entrepreneurs every step of the way, ensuring their businesses grow, succeed, and contribute to a stronger economy.
Reference
https://pib.gov.in/PressReleasePage.aspx?PRID=2089308#:~:text=A%20major%20thrust%20of%20the,the%20number%20of%20registered%20enterprises
https://www.financialexpress.com/business/sme-msmes-closed-crosses-61000-over-12000-units-shut-in-last-4-months-govt-data-3683107/#:~:text=61%2C469%20MSMEs%20registered%20under%20the,portal%20on%20July%201%2C%202020