An Empirical Study on Problems and Prospects of Micro Small and Medium Enterprises in Bengaluru, Karnataka

The Unemployment Rate of India is climbing high year on year, end of March 2018 the unemployment rate of the country has gone up to 4.1% and the number of unemployed persons is at 6.7 million. The job market of India is mostly conducive for skilled and educated. Micro Small and Medium Enterprises (MSMEs) play an important role in plugging this problem of India. They not only provide employment for unemployed but also motivate low skilled labor to start up his own enterprise. MSMEs are nurseries for entrepreneurship and innovation. Despite their tremendous potential, the MSMEs faces several difficulties, there have been high cost of traditional credit, restricted access to equity capital, raw materials at a competitive cost, unsuitable infrastructure, low technology levels, dearth of skilled manpower and lack of resources for marketing and competency, lack of access to global markets. Karnataka is one of the most progressive and industrialized states in the country and is leading States in driving India's economic growth. The State Government has taken various measures to safeguard the interest of these micro, small and medium enterprises. The study analyses the problem and prospects of MSMEs in Bengaluru.