Sustainable Growth of MSMEs : Cost Alignment and Business Strategy

Abstract

In the Indian economy the MSME’s are playing essential role of raising the country in terms of providing employment, producing goods and services. Micro, Small and Medium Enterprises (MSME) sector has emerging as a highly energetic and forceful sector of the Indian economy. MSMEs not only play key role in providing large employment opportunities at relatively lower investment cost than big industries but also assist in industrialization of rural & backward areas, thereby, dropping regional imbalances, assuring more fair distribution of national income and prosperity. MSMEs are opposite to large industries as ancillary units and this sector contributes extremely to the socio and economic development of the country. And this study aims at developing the MSME’s through the cost alignment along with the business strategy, the growth is measured in terms of expansion, diversification, enlargement of business activities of MSME’s which includes procurement of machinery, recruitment of personnel, labor, technology and improving product/service quality.