Current Challenges and opportunities for the SMEs in India


Currently, there are More than 50 million SMEs exist in our country India. The SME sector has developed powerfully by contributing 40% of the nation’s exports and generating millions of occupations every year.

The SME sector has a great deal of potential for development in the coming years with respect to entrepreneurial spirit, technology and job creation in the country. However, the SME sector has been struggling because of the burden of challenges.

Following are the major challenges faced by Indian SMEs

1) Poor access and marketing platform

SMEs in India has been exposed to weak marketing linkages. Because of factors like deficient government support, the absence of satisfactory marketing facilities, the way for the marketing of SME products will keep on being a challenging one in the future.

For promoting of products or services universally, SMEs is constantly obliged by the shortage of budget, which thusly has controlled their development.

2) Lack of access to new technology

Despite the fact that technology has progressed in the ongoing years, because of the multiplication of mobiles and web, the continuation of low innovation used by SMEs dependably brought about low profitability. This has rendered them noncompetitive in the consistently augmenting business sector.

In spite of the fact that SMEs in metropolitan cities has now appeared uplifting disposition towards the innovative take-up, the rural destinations are as yet not progressed. This will keep on challenging.

3) Lack of required credit

The most huge requirement for the development of SMEs in our nation identifies with deficient capital and credit facilities. In the coming year additionally, SMEs will undoubtedly confront the circumstances of complex securities by the banks, delay in payment and high rate of interest on the SME credit. Trouble in getting a simple and auspicious credit is a vital factor hampering the SME development.

4) Burdensome regulatory practices

The regulatory practices, for example, development licenses, settling bankruptcy, insurance, securities/certifications, and tax assessment and so on will keep on being the compelling variables for some SMEs in the future

The absence of a common regulatory body and sufficient provisions for startups will influence the development of such enterprises


From government policies to technological advancement, SMEs can anticipate the accompanying trends in the coming year

1) Influencing the e-commerce trend

SMEs now can build their existence in the online world by going digital. For a long time, the SME sector was battling with the extreme competition, yet going digital can give them the required edge.

2) The implementation of technology

Since mobile phones, social media, and cloud technology is all the rage now, SMEs can take help of these platforms Inserting the social and cloud platform will open up huge open doors for income development and operational productivity.

3) Taking the preferred standpoint of Government plans

SMEs need to get advantages of Government activities, for example, ‘Make in India’, ‘Startup India’ and ‘Skill India’. These plans presented by the government are expected to elevate an enterprising society to develop the current SME status.

4) Profusion of Fintech firms

With the quantity of Fintech firms and moneylenders on the ascent, SMEs will have the chance to get available and reasonable financing choices.

SMEs dependably needed to stress over the gap in their sources of income while taking the SME credit from the customary loan specialist. In any case, now, they will have the capacity to concentrate on their business completely, as improved speed, straightforwardness, and quick SME loan facilities are going to increment fundamentally.

SME loans have dependably helped the enterprises to meet all their business needs that emerge every once in a while without confronting any trouble.

Beneath are the business requirements catered by the SME loan

  • Business expansion
  • The launch of a new product range
  • Credit for marketing and advertising activities
  • Warehousing necessities
  • Buying new equipment
  • Paying out salary to employees

Getting easy access to loans isn’t the main conclusive factor, numerous loan specialists presently don’t require the borrowers to put their own or business resources on hold to meet all requirements for financing.

Funding now has turned out to be quicker as there is no compelling reason to promise insurance, less printed material, and negligible documentation.


2019 will be a time of dynamic changes in the Indian SME sector depends on the trends referenced previously. With a decisive ascent in technologies, a business-accommodating atmosphere for the SMEs will turn into a reality.

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