On MSME Day, small business owners urge Govt for better tech, funding, skilled workforce

On this MSME Day, entrepreneurs and small business founders across various sectors have come forward to highlight the key challenges they face while running their businesses.

The United Nations General Assembly has designated June 27 as "Micro-Small, and Medium-sized Enterprises Day" to raise awareness of the contributions of MSMEs in the achievement of the United Nations Sustainable Development Goals (SDGs).

From the need for better digital infrastructure and skilled workforce to smoother access to markets and financial support, their voices point to one common need, stronger on-ground support to help India's 64 million MSMEs grow and thrive.

In a conversation with ANI, various small business founders highlighted their demands like improving technology and supply chains for small establishments.

Vasu Naren, Chairman & Managing Director of Sona Machinery told ANI that there is a need for MSMEs to work on technology and supply chain development together.

He said sectors like food processing often struggle with low quality due to technical issues, broken logistics, and limited digital links.

He said, "Smart trade infrastructure and real-time electronic platforms must become a new norm in the MSME sector. To add to this last-mile connectivity catalyzes growth and drives process

innovation and cost-efficiency across the MSME pool. Additionally, government must levy more support in organizing trade fairs and funding the digital outreach which will empower small manufacturers to make space in the international markets".

Another founder highlighted the gaps in IT incubation support.

Abhinav Rao, Founder & CEO of ParentVerse, shared with ANI that IT-based MSMEs still face a gap in incubation support. Citing data from Tracxn, he said India has 718 incubators and accelerators, with nearly 70 per cent backed by government funding.

He said "In the case of IT-based MSMEs, this gap becomes more evident. Unlike their private counterparts, who focus on contextual mentoring, operational support, and market access, many government-led incubators lean heavily on theoretical education, while lacking access to early-stage capital and structured, outcome-driven guidance. As a result, early-stage ventures often struggle to move from ideation to execution".

The founders of healthcare MSMEs highlighted the need of R&D and data protection help.

Shabnum Khan, Founder of 750AD Healthcare stated two major issues for MSMEs in healthcare: lack of R&D support and data privacy concerns. She urged the government to provide R&D credits and conduct workshops on AI integration and data protection protocols.

She told ANI "In healthcare MSMEs, government must invest in R&D credits to the medium and small scale startups along with workshops on up skilling for AI integration and data privacy protection laws, protocols etc. The infrastructure needed to support these systems is cost intensive and this is one of the main reason why data breach is a common practice in healthcare".
Highlighting the issues in manufacturing sector the entrepreneurs stated that finding skilled labour still remains a big challenge.

Dinesh Chandra Pandey, Founder of Shankar Fenestrations Glasses said that manufacturing MSMEs face rising costs of raw materials like silica and soda ash, along with power failures and delayed payments from large customers.

He told ANI, "Trained skilled labour is still hard to come by, particularly individuals adept at precise cutting, tempering, and installation. We would like to grow, innovate, and be part of India's growth story, but without pragmatic, on-ground assistance, it becomes challenging. MSMEs like us need more tangible support, prompt payments, and better market connections to compete in today's changing construction and manufacturing world."

He also shared that despite investing in CNC machines and smart glass tech, he said market demand and awareness remain low.

Anand Kumar Bajaj, Founder & CEO of PayNearby, said small businesses still lack access to credit and digital tools. He appreciated schemes like Udyam Registration, collateral-free loans, ONDC, and RBI's efforts to push last-mile banking through Business Correspondents. Digital Access for Rural MSMEs

Nilay Patel, Founder & MD of EasyPay, said that while digital adoption is rising in Tier II and III cities, rural MSMEs still struggle to enter the wider digital market.

He said "Initiatives like ONDC are actively bridging this gap, providing small businesses with an expansive digital marketplace and enhanced access to formal financial services".

He also noted that stronger collaboration among fintechs, policymakers, and digital platforms will be paramount in equipping MSMEs, particularly in deeper markets.

As these entrepreneurs show, India's MSMEs are full of potential, but to realize it, they need timely support, better market access, and policies that work for all.