What is Collateral

Micro, Small, and Medium Enterprises (MSMEs) have emerged as a vehicle of economic growth in several emerging countries in the world. The SMEs significantly impact nations' growth in terms of their contribution to exports, employment generation, and Gross Domestic Product (GDP). It has been witnessed that these small enterprises help countries to sustain in times of economic recession. This chapter presents the significance of MSMEs, a critical review of the challenges they face, and the futuristic vision which is required by these firms so as to multiply their economic contribution in special reference to India. The chapter would serve as a resource for policy makers while bringing attention of key stakeholders to the potential of SMEs in paving the future growth curve for emerging economies in the global context. Through a critical review of secondary literature, the chapter also discusses the vision for the future which is needed for SMEs to achieve the various long-term objectives keeping in view the dynamic external environment where the world is a global village.