The role of government policy and entrepreneurship development programs in micro, small & medium sized enterprises in India: An overview

Abstract

For the development and growth of the country, the government must actively promote the development of the organisation. Small and medium enterprises (MSMEs) among for-profit companies deserve special attention. SMEs are small investment companies with enormous stakes. The sector contributes over 28% of the GDP and almost 45% to the manufacturing output. The most common organisational model in many countries, the Ministry of Small and Medium Enterprises (MSMEs), is crucial to developing a market economy. It employs almost 111 million people. The sector acts as the instrument of inclusive growth, empowering the most vulnerable and marginalised groups. There are around 6.3 crore MSME units in the country, with over 99% categorised as small units (as per the original definition). The choice depends on many factors, including public attitudes toward entrepreneurs-human structure, Size and role of Current government, level of entrepreneurial activity and prevalence of existing MSMEs. The present study evaluates government policies for MSME and how these companies work under these policies and support. This paper aims to review government policies and SME development in India 2020-21 and measure performance and business engagement. The article used the approach of secondary data with an analytical approach. To fulfil the study's objectives. Introduction The complete form of MSMEs is SMEs which are the backbone of India's GDP. MSMEs are significant drivers of India's economic growth, including manufacturing, food and beverages, utility companies, packaging industry and more. It also contributes to the industrialisation of underdeveloped and rural areas and reduces regional disparities. Today, if a company wants to survive, it must fully demonstrate its vitality and entrepreneurial spirit. It is not uncommon for governments to introduce policies that promote the development of local small and medium-sized enterprises (MSMEs). Because they help directly alleviate poverty by raising income levels and creating jobs. Experience in developed countries shows that SMEs are a significant link to their overall economic growth and development. Entrepreneurial policy-making is complex and confusing. The MSME sector is the second largest employer in India after agriculture. It employs nearly 111 million people. This sector represents more than 28% of GDP and almost 45% of industrial production. This sector serves as a tool for inclusive growth, empowering the most vulnerable and under pressure. "Small and medium-sized enterprises (SMEs) are an engine of growth for many developed and developing countries worldwide.