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Top1. Introduction
India being world’s largest democracy, is playing an important role in the world economy. Industries contribute significantly to growth and development of the nations across the boundaries. India has heterogenous industries ranging from large, medium to small (MSME) scale industries. MSMEs (Micro small and medium enterprises) play a domineering role in India’s economic growth. MSMEs have contributed to different aspects of Indian economy from manufacturing, trade to service sector. The scale of production for MSMEs is very small and often operates in closed markets (Kamunge et al., 2014). As per the directives of Government of India (with effect from 15.7.2020), a micro enterprise is classified as having investment in plant and machinery not exceeding Rs0.01 billion and turnover not exceeding Rs0.05 billion (MSME portal, Government of India). Micro enterprise refers to small business operating on limited capital and employing less than 10 people. These industries along with meeting global and domestic demands, contribute in providing jobs and poverty alleviation. They act as an ancillary unit for large industrial houses and also help in better utilization of non-significant raw material, which would have been considered waste. In 2018-19, MSMEs, made a contribution of 33.50%in GVA (Gross value added) and 30.27% towards GDP (Gross domestic product) of the country (MSME Annual report, 2020-2021). The number of MSMEs operational in India stand at 63.38 million, out of which 63.05 million belong to micro segment. This segment is major contributor to job market, by proving employment to 107.619 million youth of country (MSME Annual report,2020-2021).
Even though the micro enterprise forms the backbone of economy in developed and developing countries, still they face lot of challenges in terms of survival. Any micro enterprise goes through litmus test of survival in initial stages of growth. Technological backwardness has drastically affected the businesses of many micro enterprises. MSMEs in India are still ignorant about latest trends of technology in the world and this acts as dampener for their business growth. (Mukherjee, 2018). Indian economy faced drift change from cash to cashless transactions post demonetisation. The ripple effect of demonetisation lead to cash crunch in economy, compelled customers to move to digital platform (Lohana & Roy, 2021). Presently Government is putting best efforts to transform Indian economy from cash rich to digital economy. Small business is more manoeuvrable and provides economic independence to the entrepreneurs (Mukhoryanova et al., 2021). Micro enterprises have a cascading effect on economic growth, poverty alleviation and sustainability of an economy.