DOES THE ANC GOVERNMENT UNDERSTAND ABOUT SMALL MEDIUM ENTREPRENEURS? The real answer is no, the ANC government does not understand anything about how to go about with the establishment of such empire to create employment and grow economy. During political campaign, President Jacob Zuma promised to create 5 million jobs and yet he could not spell out one single idea how the government would do that. The President is seating on a time bomb read to explode should he fail to meet his political promises. Real markets function ‘successfully’ only when a fairly elaborate set of Surrounding institutional, infrastructural and behavioral conditions are Already in place and, equally important, are widely accepted as a Cultural norm. Poor infrastructure and inadequate market linkages are key factors that have constrained growth of the sector. The lack of adequate and timely access to finance has been the biggest challenge. The financing needs of the sector depend on the size of operation, industry, customer segment, and stage of development. Financial institutions have limited their exposure to the sector due to a higher risk perception and limited access of MSMEs to immovable collateral. The MSME sector plays a significant role in the Indian economy. A catalyst for socio-economic transformation of the country, the sector is critical in meeting the national objectives of generating employment, reducing poverty, and discouraging rural-urban migration. These enterprises help to build a thriving entrepreneurial eco-system, in addition to promoting the use of indigenous technologies. The sector has exhibited consistent growth over the last few years, but it has done so in a constrained environment often resulting in inefficient resource utilization. Of the many challenges impeding the growth and development of MSMEs, inadequate access to financial resources is one of the key bottlenecks that make these enterprises vulnerable, particularly in periods of economic downturn. The ANC government should have done more research before embarking of something they are not aware of.
Posted on: Sun, 21 Dec 2014 00:01:51 +0000
Trending Topics
Recently Viewed Topics
© 2015