History
New tech in the early 1900s fueled medium-sized industries with automation. Globalization in the 1990s and 2000s led to new challenges, prompting governments to introduce policies and programs to support the sector
MSMEs originated as family-owned small-scale industries, then grew to medium-sized in the 20th century
Post-World War II, governments acknowledged small businesses’ role in employment and economic growth
Developing countries promoted MSMEs for self-reliance and poverty alleviation
India’s MSME industry evolved with Khadi and Village Industries Commission in 1957
In 2006, MSME Development Act provided a legal framework for the sector
MSMEs contribute
~33%
of the country’s total GDP
MSMEs empower women entrepreneurs globally, contributing
30-35%
to formal SME sector, creating employment (31% in low-income, 40% in middle-income countries)
Emerging tier 2 and 3 cities
are vital hubs for MSMEs due to economic potential, investment climate, and untapped markets
40%
Financial institutions offer specific products for women entrepreneurs
MSMEs are providing training and capacity-building (e.g., ILO’s WEDP in 100 countries), policy support (e.g., India’s “Stand Up India” initiative)
According to data shared from the Udayam portal, the number of employees in MSMEs rose to 10.31M in FY22, up 16% from FY21
Over the last two years, the MSME sector has experienced a significant increase in employee count, with a growth rate of 45.5%
Companies in the environment/renewable space have experienced the maximum headcount growth, over the past two years
As per CIEL HR’s analysis of job postings, the Sales and Business Development domain is experiencing a high demand for skilled professionals. Additionally, the Finance function constitutes 17% of the job postings
