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SWOT ANALYSIS OF MSME

A PROJECT REPORT ON

SWOT ANALYSIS OF MSMEs

SESSION:

2020-2023

A Project submitted in Partial Fulfilment for the requirement of Degree of SMALL AND MEDIUM
ENTERPRISES (SME), University of Delhi.

Under the Supervision of: Submitted by: Submitted by:

Mrs NAMITA YASH KUMAR YADAV

Assistant Professor Exam Roll No. 20013576045

Department of Commerce College Roll No. 2K20/SME/93

Course: B.A. (VS) SMALL AND MEDIUM ENTERPRISES

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DECLARATION

I YASH KUMAR YADAV, the undersigned, hereby declare that the project report
submitted by me to the UNIVERSITY OF DELHI in partial fulfilment of requirement
for the award of the Degree of B.A. (VOCATIONAL STUDIES), under the guidance
of Mrs. NAMITA (Assistant Professor, Department of Commerce) COLLEGE OF
VOCATIONAL STUDIES, UNIVERSITY OF DELHI is original work and the
conclusion drawn therein her based on the material collected by myself. The
information has been used purely for academic purpose.

Place: New Delhi

YASH KUMAR YADAV

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ACKNOWLEDGEMENT

The present work is an effort to throw some light on SWOT ANALYSIS OF MSMEs
.The work would not have been possible to come to the present shape without the
able guidance, supervision and help to me by number of people. I first would like to
thank Mrs. NAMITA for their kind support because of which I was able to complete
my thesis project on time. I convey my heartfelt affection to all those people who
helped and supported me during the course, for completion of my thesis.
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CERTIFICATE

This is to Certify that this project entitled “SWOT ANALYSIS OF MSMEs” submitted
in partial Fulfilment for the award of B.A. degree of college was carried out by YASH
KUMAR YADAV under the guidance of Mrs. NAMITA, this has not been submitted to
any university or institution for the award of any degree/ diploma certificate.

NAME OF THE STUDENT NAME OF THE TEACHER

YASH KUMAR YADAV Mrs NAMITA

SIGNATURE OF STUDENT SIGNATUTRE OF TEACHER

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ABSTRACT

The role of Micro, Small and Medium Enterprises (MSMEs) in the industrial sector is
growing very fast. This research paper aims at analysing strength, weakness,
opportunities and threat of MSME sector for the increased employment and GDP.
This study will help to analyse the strength and weakness of current business
practices pursued by MSMEs. The study also reveals the opportunities and threats
to overcome by using various technological innovations. The study result suggests
and concludes that industries need to reform their strategies to manage and control
the threats in order to eradicate the weakness. Also need to strengthen the
opportunities through more affordable technologies is important.

Keywords: Strength, Weakness, Opportunity, Threat, MSMEs, Employment growth

Purpose: The purpose of this paper is to give a current scenario MSME in India and
Analyse Strength, Weakness, Opportunities and Threat of MSME.

Study Domain: The area of study area is the MSME units operating in India.

Finding: The contribution of MSME sector to employment, investment and GDP in

the country is
constantly increasing. Some of the weaker aspects of the units in this field are
changing in their strengths and the implementation of scientific management is
increasing.

Paper Type: Research article

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OBJECTIVES

The objectives of the project report are as follows:

• To know the contribution of MSME in our economy MSMEs make a crucial

contribution to India's GDP. MSMEs contribute more than 29% to the GDP
and are responsible for 50% of the country's total exports. They are also
accountable for one-third of India's manufacturing output.

• Provide suitable suggestions to generate employment and increase GDP.

• To identify the strength, weakness, opportunity, and threat of MSMEs

industry,
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TABLE OF CONTENTS
Chapter 1

INTRODUCTION

WHAT IS MSMES?

Previous/ Old Definition of MSMEs

New Definition of MSMEs (effective from 1st July 2020)

MSME in Indian perspective:

Role of MSMEs in Indian Economy

Importance of MSMEs for the Indian Economy

WHAT IS SWOT ANALYSIS?

WHY SWOT IS NEEDED

Components of SWOT Analysis

SWOT Table

How to Do a SWOT Analysis;

Step 1: Determine Your Objective

Step 2: Gather Resources

Step 3: Compile Ideas

Step 4: Refine Findings

Step 5: Develop the Strategy

Benefits of SWOT Analysis

Chapter 2

SWOT ANALYSIS OF MSME:

Strength:

Weakness:

Opportunities:
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THREATS:

Chapter 3

LITERATURE REVIEW

Chapter 4

RESEARCH METHODOLOGY

Chapter 5

Discussion and Conclusion

REFERENCES
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CHAPTER 1

INTRODUCTION
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WHAT IS MSMES?

Micro, Small and Medium Enterprises are better known by the acronym MSME.
MSMEs are the backbone of the Indian economy. Silently operating in different areas
across the country, more than 6 crore MSMEs have a crucial role to play in building
a stronger and self-reliant India. These small economic engines have a huge impact
on the country’s GDP.

MSMEs contribute a staggering 30% to the country’s GDP, and around 45% of the
manufacturing output, and approximately 48% of the country’s exports. Additionally,
more than 11 crore people are employed in the MSME sector. They’re rightly
referred to as the ‘Backbone of the country.’

The MSME ministry in order to strengthen the backbone of the country targets to
increase its contribution towards GDP by up to 50% by 2025 as India moves ahead
to become a $5 trillion economy.

MSMEs are the growth engine of new India, they’ve proved essential in this age of
economic development that we’re witnessing around us. MSMEs have slowly helped
revive the artisan class in the far reaches of the country by providing them with
employment and in turn access to loans and other services. They constantly support
the up-gradation of technology, infrastructure development within the country, and
have triggered the modernization of the country as a whole.

Previous/ Old Definition of MSMEs

Micro, Small and Medium Enterprises (MSME), are small-sized business enterprises
defined in terms of their investment. According to the provisions of the Micro, Small
and Medium Enterprises Development (MSMED) Act, 2006 the MSMEs are
classified into two categories:
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1. Manufacturing Enterprises

2. Service Enterprises

1. Manufacturing Enterprises

The Manufacturing Enterprise is defined in terms of investment in Plant & Machinery.

Enterprises Investment in Plant & Machinery

Micro Enterprises Investment does not exceed Rs. 25 Lakh

Small Enterprises Investment is more than Rs. 25 Lakh but does not exceed Rs. 5 Crore

Medium Enterprises Investment is more than Rs. 5 Crore but does not exceed Rs. 10 Crore

Enterprises Investment in Equipment

Micro Enterprises Investment does not exceed Rs. 10 Lakh

Small Enterprises Investment is more than Rs. 10 Lakh but does not exceed Rs. 2 Crore

Medium Enterprises Investment is more than Rs. 2 Crore but does not exceed Rs. 5 Crore

2. Service Enterprises

The Service Enterprise is defined in terms of investment in equipment.

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New Definition of MSMEs (effective from 1st July 2020)

The criterion of defining MSME enterprises was based on the MSMED Act, 2006. It
was different for manufacturing and services units. It was also very low in terms of
financial limits (i.e. Investment amount). Since then, the economy has undergone
significant changes.

A new composite formula of classification for manufacturing and service units has
been notified. Now, there is no difference between the manufacturing and service
sectors.

The government of India made a proposal to redefine MSMEs by the Micro, Small
and Medium Enterprises Development (Amendment) Bill, 2018, to classify them as
manufacturing or service-providing enterprises. Under this bill, there would be no
need for frequent inspections to check the required investments needed to be made
in the plant and machinery needed. Also, the operations of MSMEs would be allowed
to continue in a transparent, non-discriminatory, and objective manner.

The new criterion is based on the Investment Amount and Turnover of the
enterprise.

Category Investment limit (in Rs.) Turnover limit (in Rs.)

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Micro 1 crore 5 crore

Small 10 crore 50 crore

Medium 50 crore 250 crore

While computing the Turnover of the MSME enterprises, it is provisioned to exclude

Exports turnover i.e. turnover with respect to exports will not be counted in the limits
of turnover for any category of MSME units whether micro, small or medium. It is
particularly important to note that the provision of excluding the exports from the
counting of turnover is going to encourage the MSMEs to export more and more
without fearing losing the benefits of an MSME unit. This is expected to exponentially
add to exports from the country leading to more growth and economic activity and
creation of jobs.

Union Ministry of Micro, Small and Medium Enterprises have issued a Gazette
notification to notify the new definition and criteria of MSMEs in the country. The new
definition and criterion are effective from 1st July 2020.
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MSME in Indian perspective:

According to the 4th MSME, the census 2006-07, the number of these units is shown
in the table. The data show the main two aspects

1) Registered units 2) Unregistered units. The numerical data has been

shown for both aspect
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As per the above table

Total 361.76 lakh MSMEs have been working. The majority of the units
95.68% are unregistered units, while only 4.32 percent of the units are registered.
In The table above
(register and unregistered units) further analysed into the different nine aspect. The
data of nine aspects interpreted on the basic of cumulative percentage which
describe in the following.

i. The total number of enterprises operating is 361.76 lakh. Of which, 68.21

percent is in the service area and 31.79 percent is in the manufacturing
sector. Most of the units here are unregistered units.
ii. 55.34% of the enterprises operating in the sector are in the rural area and
44.66% of the enterprises are in the urban area.
iii. Out of the 56.46 per cent enterprises operating in perennial, 92.59 per
cent are non-registered and the remaining registered.
iv. Total 7.35 percent enterprises were owned by women, where 91.95
percent are unregistered and rest is other enterprises are registered.
v. In aspect of employment, 60.25 percent of the employment generate from
the service sector while 39.75 percent of the employment is from the
manufacturing sector.
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vi. In view point of employment, men employed (85.03 percent) and women
(14.97 percent) employment in this sector.
vii. According to the social categories wise enterprises operated are 43.56
percent by other categories, 41.94 percent of OBC, 7.83 percent by SC
and 5.76 percent by ST which is lowest.
viii. According to ownership the highest percentage of enterprises is
proprietary is. 97.41 percent where only 0.14 percent ownership has public
limited company.

Role of MSMEs in Indian Economy

Since its formation, the MSME segment has proven to be a highly dynamic Indian
economy sector. MSMEs produce and manufacture a variety of products for both
domestic as well as international markets. They have helped promote the growth
and development of khadi, village, and coir industries. They have collaborated and
worked with the concerned ministries, state governments, and stakeholders
towards the upbringing of rural areas.

MSMEs have played an essential role in providing employment opportunities in

rural areas. They have helped in the industrialization of these areas with a low
capital cost compared to the large industries. Acting as a complementary unit to
large sectors, the MSME sector has enormously contributed to its socio-economic
development.

MSMEs also contribute and play an essential role in the country’s development in
different areas like the requirement of low investment, flexibility in operations,
mobility through the locations, low rate of imports, and a high contribution to
domestic production.
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With the capability and capacity to develop appropriate local technology, provide
fierce competition in domestic and international markets, technology-savvy
industries, a contribution towards creating defense materials, and generating new
entrepreneurs by providing knowledge, training, and skill up-gradation through
specialized training centers.

The Micro, Small & Medium Enterprises (MSMEs) have been contributing
significantly to the expansion of entrepreneurial endeavours through business
innovations. The MSMEs are widening their domain across sectors of the economy,
producing diverse range of products and services to meet demands of domestic as
well as global markets. As per the data available with Central Statistics Office (CSO),
M/o Statistics & Programme Implementation, the contribution of MSME sector in
Country’s Gross Value Added (GVA) and Gross Domestic Product (GDP) at current
prices from 2014-15 to 2018-19 is as below:

Share of Gross Value Added (GVA) of MSME in all India GDP

Source: Central Statistics Office (CSO), Ministry of Statistics & Program

Implementation
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Importance of MSMEs for the Indian Economy

Across the globe, MSMEs are accepted as a means of economic growth and for
promoting equitable development. They are known to generate the highest rate of
growth in the economy. MSMEs have driven India to new heights through
requirements of low investment, flexible operations, and the capacity to develop
appropriate native technology.

1. MSMEs employ around 120 million persons, becoming the second-largest

employment generating sector after agriculture.

2. With approximately 45 lac units throughout the country, it contributes about

6.11% of GDP from manufacturing and 24.63% of the GDP from service
activities.

3. MSME ministry targets to increase its contribution towards GDP by up to

50% by 2025 as India moves ahead to become a $5 trillion economy

4. Contributing around 45% of overall Indian exports

5. MSMEs promote all-inclusive growth by providing employment opportunities,

especially to people belonging to weaker sections of the society in rural
areas.

6. MSMEs in tier-2 and tier-3 cities help in creating opportunities for people to
use banking services and products, which can amount to the final inclusion
of the contribution of MSMEs for the economy.

7. MSMEs promote innovation by providing an opportunity to budding

entrepreneurs to help them build creative products hey and thereby boost
competition in business and fuel the growth.

The Indian MSME sector provides silent support to the national economy and acts
as a defense against global economic shock and adversities. Hence, we can say
that India is propelling towards a robust global economy through a silent revolution
powered by MSMEs.
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Micro, Small and Medium Enterprises Development Act, 2006

The Micro, Small and Medium Enterprises Development Act, 2006 is an Act of

the Parliament of India. According to the act, "any buyer who fails to make payment

to MSMEs, as per agreed terms or a maximum of 45 days, would be liable to pay

monthly compounded interest at three times the bank rate notified by RBI". Industries

are divided into 2 categories. Manufacturing and services. They are further divided

into micro, small and medium. For both, manufacturing and services sectors, micro

industries' capital requirements are under 1 Crore rupees and an annual turnover of

less than 5 Crore rupees. Small industries shall have cis 50 and 250 Crores

respectively.

Objective & Necessity of MSMED Act

A single comprehensive act for development and regulation of small enterprises had

been a long outstanding demand of the Sector so as to free it from a plethora of laws

and regulations and visit of inspectors, which it had to face with limited awareness

and resources. The need has been emphasized from time to time by stake holders at

different fora. In addition, recommendations to provide for a proper legal framework

for small sector to relieve it of the requirements to comply with multiple rules and

regulations were made by the Committees such as the Abid Hussain Committee

(1997) and Study Group under Dr. S.P. Gupta (2000). While the small scale

industries continued to be important for the economy, in the recent years the small

scale services have also emerged as a significant sector contributing substantially to

the economy and employing millions of workers. Therefore, it became necessary, as

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is the practice worldwide, to address the concerns of both the small scale industries

and services together and recognize them as small enterprises. The worldwide as a

composite sector. In a fast growing economy like ours, the natural mobility of small

enterprises to medium ones has to be facilitated through appropriate policy

interventions and legal framework. With these objectives in view, the Government

came with an exclusive legislation for micro, small and medium enterprises known as

the Micro, Small and Medium Enterprises Development Act, 2006.

DISPUTES UNDER THE MSME DEVELOPMENT ACT

In case of disputes with regard to any amount due because of delayed payment:

• The enterprises under the provisions of the Act may refer to the Micro and Small

Enterprises Facilitation Council which would further take the matter forward for

conciliation.

• And where the conciliation initiated is not successful and stands terminated without

any settlement between the parties, the council shall either itself take up the dispute

for arbitration, or refer it to any institution or centre providing alternate dispute

resolution services.
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• The Micro and Small Enterprises Facilitation Council or the centre providing alternate

dispute resolution services shall have the same jurisdiction to act as an Arbitrator or

conciliator under this section in a dispute between the supplier located within the

jurisdiction and a buyer located anywhere in India.

The Act also has a provision where every reference made under this section

shall be decided within a period of 90 days from the date of making the reference.

Under section 19 of the Act, it has also been mentioned that no Application

for setting aside any decree/award, made by the Council / referred Institution shall

be entertained by any Court unless the appellant (not being the supplier) has

deposited with it seventy-five percent of the amount in terms of the decree/ award.

Further, provided that pending disposal of the application to set aside the decree,

award or order, the court shall order that such percentage of the amount deposited

shall be paid to the supplier, as it considers reasonable under the circumstances of

the case subject to such conditions as it deems necessary to impose.

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MSMEs As Large Employment Creators

India's MSME sector comprises 63 million units and has created 111 million jobs, but
this sector is plagued by low levels of registration

Micro, small and medium enterprises (MSMEs) provide large employment

opportunities at lower capital cost than large industries, but this sector is plagued
by low levels of registration. As per the 73rd National Sample Survey (2015-16),
India's MSME sector comprises 63 million units and has created 111 million jobs.

Enterprises with turnover not exceeding Rs 250 crore and having investment in
plant and machinery not exceeding Rs 50 crore are eligible to register as MSMEs.
Registering as an MSME entitles the establishment to receive benefits in the form
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of government subsidies, easy loan approvals, reduced electricity bills and access
to MSME clusters for skill and technology development.

Current data (December 2019) indicate that although MSME registrations are at a
meagre 8.3 million (13% of all MSMEs), these registered MSMEs create 46.6
million (42%) jobs. Top registrations are from personal and professional services
(10%), textile and apparel manufacturers (9.4%), food and beverage manufacturers
(7.9%), wholesale and retail traders (6.6%), hospitality services (6.4%) and other
manufacturing enterprises (6.2%).

Recognising the ability of MSMEs to generate large-scale employment and

contribute to the nation's GDP and exports, the government is encouraging more
establishments to register as MSMEs. Recently, a further simplification in
registrations was announced by introducing a new portal called Udyam
Registration, which proposes automatic integration with income tax and GST
databases.
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SCHEMES FOR MSMEs

• The ‘Make in India’ initiative and the ‘Atmanirbhar Bharat Abhiyaan’ (Self
Reliant India Campaign) have played a key role in promoting business
and local manufacturing in the country, giving special thrust to Micro,
Small and Medium Enterprises (MSMEs), also referred to as the
backbone of Indian economy.

• The central government has also taken immediate response measures in

the form of the Atmanirbhar Bharat Package to ensure continuity of
businesses during the COVID-19 pandemic.

• Along with these measures, the main governing body for MSMEs in the
country, i.e., the Ministry of Micro, Small and Medium Enterprises
(M/o MSMEs) also has numerous schemes in place to support the
budding manufacturing units across the country.

PM EMPLOYMENT GENERATION
PROGRAMME AND OTHER CREDIT
SUPPORT SCHEMES
• Prime Minister Employment Generation Programme (PMEGP) - Setup with
an aim to create employment opportunities for MSMEs in the country, the
PMEGP is implemented by Khadi and Village Industries Commission (KVIC) at
the national level while at the state and districts level, it is implemented by
State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs),
District Industries Centres (DICs) and banks.

• Credit Guarantee Trust Fund for Micro & Small Enterprises (CGTMSE) -
Established by M/o MSME and Small Industries Development Bank of India
(SIDBI) to provide collateral free loans (up to INR 1 cr) to individual Micro and
Small Enterprises (MSEs).
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• Interest Subsidy Eligibility Certificate (ISEC) - The scheme was introduced

as a funding mechanism for khadi programme undertaken by khadi institutions
in the country. It mobilises funds from banking institutions with an aim to fill the
gaps between availability of funds from budgetary sources and the actual fund
requirements.

DEVELOPMENT OF KHADI,
VILLAGE AND COIR INDUSTRIES
• Several schemes have been launched for the development of MSMEs
operating under the Khadi, Village and Coir Industries in the country. These
include the following:

1. Market Promotion & Development Scheme (MPDA)

2. Revamped Scheme of Fund for Regeneration of Traditional Industries
(SFURTI) -
3. Coir Vikas Yojana (CVY)
4. Export Market Promotion (EMP)
5. Domestic Market Promotion (DMP)
6. Trade and Industry Related Functional Support Services (TIRFSS)
7. Welfare Measures (Pradhan Mantri Suraksha Bima Yojana (PMSBY)

TECHNOLOGY UPGRADATION
AND QUALITY CERTIFICATION
• Financial Support to MSMEs in ZED Certification Scheme - Supporting the
‘Make in India’ initiative, the aim of the scheme is to inculcate Zero Defect &
Zero Effect (ZED) practices in manufacturing done by Indian MSMEs. Under
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the scheme, the Government of India (GoI) provides up to 80% subsidy to

MSMEs.

• A Scheme for Promoting Innovation, Rural Industry & Entrepreneurship

(ASPIRE) – The main objectives of the scheme are to:

1. Create new jobs

2. Promote entrepreneurship
3. Boost economic development at grass root level
4. Facilitate innovative business solutions
5. Promote innovation

• National Manufacturing Competitiveness Programme (NMCP) - An

umbrella scheme which aids MSMEs through the following sub schemes:

1. Credit Linked Capital Subsidy for Technology Upgradation (CLCSS)

2. Financial Assistance on GS1
Barcodes for Micro Enterprises
3. Lean Manufacturing Competitiveness for MSMEs
4. Design Clinic for Design Expertise to MSMEs
5. Technology and Quality Upgradation Support to MSMEs
6. Entrepreneurial and Managerial Development of SMEs through
Incubators
7. Enabling Manufacturing Sector to be Competitive through Quality
Management Standards (QMS) and Quality Technology Tools (QTT)
8. Building Awareness on Intellectual Property Rights (IPR)

OTHER SCHEMES AND

PROGRAMMES
• The M/o MSME also covers many other aspects such as Marketing &
Promotion, Skill Development, Infrastructure Development and Policy
Research for providing a wholistic framework of schemes to aid MSMEs. This
includes the following:

1. Marketing Promotion Schemes

2. Entrepreneurship and Skill Development Programme
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3. Infrastructure Development Programme

4. Scheme of Surveys, Studies and Policy Research
5. National SC-ST-HUB
6. Scheme of Information, Education and Communication
7. Scheme of Fund for Regeneration of Traditional Industries (SFURTI)
8. A Scheme for Promotion of Innovation, Rural Industries and
Entrepreneurship (ASPIRE)
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WHAT IS SWOT ANALYSIS?

SWOT (strengths, weaknesses, opportunities, and threats) analysis is a framework

used to evaluate a company's competitive position and to develop strategic
planning. SWOT analysis assesses internal and external factors, as well as current
and future potential.

A SWOT analysis is designed to facilitate a realistic, fact-based, data-driven look at

the strengths and weaknesses of an organization, initiatives, or within its industry.
The organization needs to keep the analysis accurate by avoiding pre-conceived
beliefs or gray areas and instead focusing on real-life contexts. Companies should
use it as a guide and not necessarily as a prescription.

SWOT analysis is a technique for assessing the performance, competition, risk, and
potential of a business, as well as part of a business such as a product line or
division, an industry, or other entity.

Using internal and external data, the technique can guide businesses toward
strategies more likely to be successful, and away from those in which they have
been, or are likely to be, less successful. Independent SWOT analysts, investors, or
competitors can also guide them on whether a company, product line, or industry
might be strong or weak and why.

WHY SWOT IS NEEDED

• SWOT analysis is a strategic planning technique that provides assessment

tools.
• Identifying core strengths, weaknesses, opportunities, and threats leads to
fact-based analysis, fresh perspectives, and new ideas.
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• A SWOT analysis pulls information internal sources (strengths of

weaknesses of the specific company) as well as external forces that may
have uncontrollable impacts to decisions (opportunities and threats).
• SWOT analysis works best when diverse groups or voices within an
organization are free to provide realistic data points rather than prescribed
messaging.
• Findings of a SWOT analysis are often synthesized to support a single
objective or decision that a company is facing.

Components of SWOT Analysis

Every SWOT analysis will include the following four categories. Though the
elements and discoveries within these categories will vary from company to
company, a SWOT analysis is not complete without each of these elements:

Strengths

Strengths describe what an organization excels at and what separates it from the
competition: a strong brand, loyal customer base, a strong balance sheet, unique
technology, and so on. For example, a hedge fund may have developed a
proprietary trading strategy that returns market-beating results. It must then decide
how to use those results to attract new investors.

Weaknesses

Weaknesses stop an organization from performing at its optimum level. They are
areas where the business needs to improve to remain competitive: a weak brand,
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higher-than-average turnover, high levels of debt, an inadequate supply chain, or

lack of capital.

Opportunities

Opportunities refer to favourable external factors that could give an organization a

competitive advantage. For example, if a country cuts tariffs, a car manufacturer
can export its cars into a new market, increasing sales and market share.

Threats

Threats refer to factors that have the potential to harm an organization. For
example, a drought is a threat to a wheat-producing company, as it may destroy or
reduce the crop yield. Other common threats include things like rising costs for
materials, increasing competition, tight labor supply. and so on.

SWOT Table

Analysts present a SWOT analysis as a square segmented into four quadrants,

each dedicated to an element of SWOT. This visual arrangement provides a quick
overview of the company’s position. Although all the points under a particular
heading may not be of equal importance, they all should represent key insights into
the balance of opportunities and threats, advantages and disadvantages, and so
forth.

The SWOT table is often laid out with the internal factors on the top row and the
external factors on the bottom row. In addition, the items on the left side of the table
are more positive/favourable aspects, while the items on the right are more
concerning/negative elements.
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How to Do a SWOT Analysis;

A SWOT analysis can be broken into several steps with actionable items before and
after analysing the four components. In general, a SWOT analysis will involve the
following steps.

Step 1: Determine Your Objective

A SWOT analysis can be broad, though more value will likely be generated if the
analysis is pointed directly at an objective. For example, the objective of a SWOT
analysis may focus only on whether or not to perform a new product rollout. With an
objective in mind, a company will have guidance on what they hope to achieve at
the end of the process. In this example, the SWOT analysis should help determine
whether or not the product should be introduced.

Step 2: Gather Resources

Every SWOT analysis will vary, and a company may need different data sets to
support pulling together different SWOT analysis tables. A company should begin
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by understanding what information it has access to, what data limitations it faces,
and how reliable its external data sources are.

In addition to data, a company should understand the right combination of personnel

to have involved in the analysis. Some staff may be more connected with external
forces, while various staff within the manufacturing or sales departments may have
a better grasp of what is going on internally. Having a broad set of perspectives is
also more likely to yield diverse, value-adding contributions.

Step 3: Compile Ideas

For each of the four components of the SWOT analysis, the group of people
assigned to performing the analysis should begin listing ideas within each category.
Examples of questions to ask or consider for each group are in the table below.

➢ Internal Factors

What occurs within the company serves as a great source of information for the
strengths and weaknesses categories of the SWOT analysis. Examples of internal
factors include financial and human resources, tangible and intangible (brand name)
assets, and operational efficiencies.

Potential questions to list internal factors are:

• (Strength) What are we doing well?

• (Strength) What is our strongest asset?
• (Weakness) What are our detractors?
• (Weakness) What are our lowest-performing product lines?

➢ External Factors
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What happens outside of the company is equally as important to the success of a

company as internal factors. External influences, such as monetary policies, market
changes, and access to suppliers, are categories to pull from to create a list of
opportunities and weaknesses.1

Potential questions to list external factors are:

• (Opportunity) What trends are evident in the marketplace?

• (Opportunity) What demographics are we not targeting?
• (Threat) How many competitors exist, and what is their market share?
• (Threat) Are there new regulations that potentially could harm our operations
or products?

Strengths Weaknesses
1. What is our competitive advantage? 1. Where can we improve?
2. What resources do we have? 2. What products are underperforming?
3. What products are performing well? 3. Where are we lacking resources?

Opportunities Threats
1. What new technology can we use? 1. What regulations are changing?
2. Can we expand our operations? 2. What are competitors doing?
3. What new segments can we test? 3. How are consumer trends changing?

Companies may consider performing this step as a "white-boarding" or "sticky note"

session. The idea is there is no right or wrong answer; all participants should be
encouraged to share whatever thoughts they have. These ideas can later be
discarded; in the meantime, the goal should be to come up with as many items as
possible to invoke creativity and inspiration in others.

Step 4: Refine Findings

With the list of ideas within each category, it is now time to clean-up the only the
best ideas or largest risks to the company. This stage may require substantial
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debate among analysis participants, including bringing in upper management to

help rank priorities.

Step 5: Develop the Strategy

Armed with the ranked list of strengths, weaknesses, opportunities, and threats, it is
time to convert the SWOT analysis into a strategic plan. Members of the analysis
team take the bulleted list of items within each category and create a synthesized
plan that provides guidance on the original objective.

For example, the company debating whether to release a new product may have
identified that it is the market leader for its existing product and there is the
opportunity to expand to new markets. However, increased material costs, strained
distribution lines, the need for additional staff, and unpredictable
product demand may outweigh the strengths and opportunities. The analysis team
develops the strategy to revisit the decision in six months in hopes of costs declining
and market demand becoming more transparent.
 35

Benefits of SWOT Analysis

A SWOT analysis won't solve every major question a company has. However, there
are a number of benefits to a SWOT analysis that make strategic decision-making
easier.

• A SWOT analysis makes complex problems more manageable. There

may be an overwhelming amount of data to analyse and relevant points to
consider when making a complex decision. In general, a SWOT analysis that
has been prepared by paring down all ideas and ranking bullets by
importance will aggregate a large, potentially overwhelming problem into a
more digestible report.

• A SWOT analysis requires external considers. Too often, a company may

be tempted to only consider internal factors when making decisions.
However, there are often items out of the company's control that may
influence the outcome of a business decision. A SWOT analysis covers both
the internal factors a company can manage and the external factors that may
be more difficult to control.

• A SWOT analysis can be applied to almost every business

question. The analysis can relate to an organization, team, or individual. It
 36

can also analyse a full product line, changes to brand, geographical

expansion, or an acquisition. The SWOT analysis is a versatile tool that has
many applications.

• A SWOT analysis leverages different data sources. A company will likely

use internal information for strengths and weaknesses. The company will
also need to gather external information relating to broad markets,
competitors, or macroeconomic forces for opportunities and threats. Instead
of relying on a single, potentially biased source, a good SWOT analysis
compiles various angles.

• A SWOT analysis may not be overly costly to prepare. Some SWOT

reports do not need to overly technical; therefore, many different staff
members can contribute to its preparation without training or external
consulting.
 37

CHAPTER 2

SWOT A NALYSIS OF MSME:

In order to operate successfully any units need proper infrastructure facilities.

However, most MSMEs operate with very little infrastructure. The purpose of the
government's cluster development program is to set up Common Facility Centres to
get sophisticated tools, technology, design etc. Overall skilled human resources to
be an extremely important component for success in the MSME sector also very
important to attract and retain the available human force as well as develop new
talents. The government has undertaken many capacity building programs to
address this issue. Such as Entrepreneurship development programs and vocational
training programs. We discuss SWOT analysis on overall aspect of MSME
:

STRENGTH:

i. Adapting to change:

The small business are not much involved in administrative process

so it is easy to adopt change.

ii. Good customer relation:

Small business proprietors tend to be intimate with their customers

and clients which results in greater accountability and maturity.
 38

They usually offer a more personalized approach to interacting with

clients. Customers who are treated like family are more likely to
return to that business in the future.

iii. Independence:

Independence is Strength of owning a small business. One survey

of small business owners showed that 38% of those who left their
jobs at other companies because they wanted to be their own boss
and to take their own decision. In addition, many people desire to
make their own decisions, take their own risks, and enjoy the
rewards of their efforts.

iv. Innovation and creation:

They are able to innovate and create new products and services
more rapidly and creatively than larger companies that are mired in
bureaucracy. Whether reacting to changes in fashion,
demographics, or a competitor's advertising, a small firm usually
can make decisions in days – not months or years

v. Cater to customer needs:

A small firm has the ability to modify its products or services in

response to unique customer needs. The average entrepreneur or
manager of a small business knows his customer far better than
one in a large company. If a modification in the products or services
offered – or even the business's hours of operation – would better
serve the customers, it is possible for a small firm to make changes.
Customers can even have a role in product development.
 39

vi. Gestation period:

A small scale unit has less gestation period, which means the
period after which the returns on investment starts. It is usually 2-5
years

vii. Participation of Peoples:

Another strength is that the people involved – the entrepreneur, any

partners, advisers, employees, or even family members – have a
passionate, almost compulsive, desire to succeed. This makes
them work harder and better.

WEAKNESS:

i. Difficult to reach the potential customer:

It is difficult to reach to potential customers in the market by this MSME

because it required publicity and lots of financial burden.this MSME
because it required publicity and lots of financial burden.

ii. Difficult to get financial Aid:

 40

This is the major weakness of the MSME as the bank, Govt. corporation
and other financial agencies are not easily provide the financial help to this
sector.

iii. High production cost:

In the MSME the production cost are coming very high so it is the
hindrance for the MSME sector development.

iv. Entrepreneurial Myth:

There is myth that who has a technical skills and knowledge they become
a good entrepreneur but the management skill is required to run good
business.

v. Lack of skilled persons:

Most of small scale businesses do not have skilled personnel. Due to

which these businesses lack in- identification of industrial projects for
development, consultancy and counselling services, industrial training and
skill formation

vi. Small businesses do not use Information technology and its applications
such as the designing of prototype machines for product identified
according to country resources and requirements.

vii. Difficulty in getting licencing:

MSME organisation has a difficulty in getting government licencing and the

lots of time and energy were used.
 41

viii. Marketing is one of the weaknesses for small businesses. They face many
problems in marketing like- Lack of standardisation, Poor designing, Poor
quality, Lack of quality control, Lack of precision, Poor finish, Poor
bargaining power, Lack of service after sales, Scale of production, Brand
preferences, Distribution contacts, Lack of knowledge of marketing,
Competition, Ignorance of potential market is one of weakness.

OPPORTUNITIES:

i. Government is providing many opportunities for MSMEs. Government has

formed many policies and financial institutions for helping small units like-
a) Policy for Development of handloom Industry
b) Policy for Khadi and Village Industries
c) Industrial Estates Programme

d) Promotion of Ancillary Industries

e) Industrial policy resolution
f) Import Export Policy 1994-97
g) The Pricing Policy
h) The Textile Policy

ii. ABID HUSSAIN COMMITTEE :

An expert committee with 11 members and headed by Abid Hussain was

constituted on December 1995 by the Government to study the status of
 42

Small Scale Enterprises and to suggest measures by which these units could
grow and remain competitive in the changing economic environment.

Major recommendations include

▪ Abolition of the policy of reservation for SSI‘s

▪ Transitional package of ₹ 2500 crores (by setting up of corpus of ₹500 crores
on annual basis) to provide confessional funding for the SSI‘s affected by de-
reservation.
▪ provide confessional funding for the SSI‘s affected by de-reservation.
▪ Specialised commercial bank branches for SSI‘s for easy credit facilities
▪ Reduction of credit cost of SSI‘s
▪ Setting up of SSI clusters with modern infrastructure facilities
▪ Restoration of excise exemption on branded goods.
▪ Excise incentives for graduating tiny and small scale units
▪ Credit rating for small business to enable them to avail funds at lower cost.

iii. Micro small and medium Enterprise Development Act 2006 was implemented
on 2nd October 2006.

iv. There is de-reservation and reservation of products for SSI‘s.

Products reserved for SSI in India (as on 30 July 2010)

a) Food and Allied industries; Pickles and chutney, Bread, Mustard oil,
Groundnut oil,
b) wood and wood products; wooden furniture and fixtures, paper prospects,
exercise books and registers
c) other chemical and chemical products; wax candles, fireworks, safety
matches, agar batties
d) Glass and ceramics
e) Mechanical engineering and excluding transport equipment; Steel furniture,
Elmira, Chairs, Tables
 43

f) Domestic utensils; Stainless steel, Aluminium

v. Prime ministers task force of MSME‘s was made, who presented a report on
30th January 2010. This task force was formed on 2nd September 2009
under leadership of T.K.A. Nair who was secretary to PM. This task force
focused on 6 areas, which are- Credit, Marketing, Labour, Infrastructure,
Rehabilitation and exit policy, Skill development, Taxation

vi. There are many Government and Non-Government Financial Institutions who
provide financial assistance to MSME‘s like
➢ SIDBI – Small Industries Development Bank of India
➢ SIDO – Small Industries Development Organisation
➢ SISI‘s – Small Industries Service Institutes
➢ NSIC – National Small Industries Corporation
➢ NIESBUD – The National Institute For Entrepreneurship and Small Business
Development
➢ NABARD – National Bank for Agriculture and Rural Development
➢ SFC‘s – State Financial Corporations

THREATS:

i. Timely Payment –

While large corporations and banks have been fortified with ample low-
cost cash to buy small businesses‘ products and services, they continue to
pay slowly, bargain harder and demand more concessions from powerless
small businesses who are selling their souls ―where the money is.
buy small businesses‘ products and services, they continue to pay slowly, bargain
harder and demand more concessions from powerless small businesses who are
selling their souls ―”where the money is”.
 44

ii. New costs, taxes and compliance —

As social causes like sustainability, diversity, healthcare and fair taxation

are being legislated by governments and lobbied into favourable terms for
corporations, small business is getting choked. Small business used to
lament about paperwork. Now, the new costs, taxes and compliance rules
are sapping the will of owners to believe that they should risk, invest and
remain confident in their businesses. A comedian recently reacted to the
Times Square hot dog vendor discovering the incompetent Time Square
bomber‘s smoking SUV, that not only must small business save the
economy, but now must save the country from terrorism!

iii. Some of the deficiencies in the 'vendor program' are also hindering the
growth of small businesses.
 45

CHAPTER 3

LITERATURE REVIEW
 46

MSMEs The Central Institute of Statistics' (BPS) definition of MSMEs was

based on the number of employees: small businesses with five to nineteen
employees and medium businesses with twenty to ninety-nine employees
(Rahmana, 2009).According to Larasati (2011), the above definition of
MSMEs is consistent with the Asian Development Bank (ADB) definition of
MSMEs. In addition to the characteristics that distinguish micro-enterprises,
small businesses, and medium-sized businesses themselves, MSMEs
have unique characteristics that set them apart from larger types of
businesses. According to Tambunan (2009), only 5.2 percent of the
entrepreneurs of MSMEs in Indonesia are under 25 years old, and more
than one third of MSMEs in Indonesia are managed by workers over 45
years old. Small businesses don't need workers with a lot of formal
education. According to Sulistyastuti (2004), the majority of the industry's
labour requirements are based on experience—also known as "learning by
doing"—and the historical factor of "path dependence. “According to
Tambunan (2009), the structure of entrepreneurs based on their level of
formal education suggests that there is a positive relationship between the
average entrepreneur's level of education and the business scale. This
means that the larger the business scale, which is generally, associated
positively with the level of business complexity that necessitates high skills
and a broader understanding of the business, the greater the number of
entrepreneurs who have tertiary formal education. Due to the low level of
education of entrepreneurs, the majority of MSMEs revealed that the
reason for their business activities was economic background. This means
that the business was run in an effort to improve income or as a survival
strategy.
 47

According to Tambunan (2009), MSMEs are run because there are no

other types of jobs that can be done with a relatively low level of formal
education. While some entrepreneurs run their businesses with future
business prospects in mind, such as the availability of secure, substantial
opportunities and market share, others have a history of ancestry, implying
that they will continue the family inheritance business. Indonesia has a lot
of micro, small, and medium-sized enterprises (MSMEs), but not all of them
are legal entities. The majority of the MSMEs that are currently in
existence—roughly 95.1% of the total number of business units—are not
legal entities. This is acceptable due to the fact that most MSMEs have
very little capital and complicated regulations for obtaining services for the
growth of their businesses. Utilization of locally sourced raw materials is a
characteristic of MSMEs. According to Sulistyastuti (2004), the high
intensity of use of local raw materials in MSMEs' production of Jepara
carving furniture, which is typical of batik from Pekalongan, is frequently
linked to the existence of these businesses.

The growth of Micro, Small and Medium Enterprises in Tangerang City also
has a positive trend. Based on data from the Department of Industry, Trade
and Cooperatives until the end of 2015, the number of Micro Small and
Medium Enterprises in Tangerang City reached 10,079 units. The number
is divided into three categories, namely Micro Small and Medium
Enterprises 8,132 units, Small and Medium Enterprises Small 1,502 Units
and Small and Medium Enterprises 445 Units. Deputy Mayor of Tangerang
Sachrudin added that creative economy, such as Micro, Small and Medium
Enterprises, is included in the 11 development priorities of the Tangerang
City Government. Therefore, the community must also be able to generate
creative and development ideas to market Micro, Small and Medium
 48

Enterprises products. There is a group of SMEs that have entrepreneurial

traits but some do not. By using entrepreneurship criteria, we can divide
MSMEs into four parts, namely as follows:

1. Livelihood Activities are Small and Medium Enterprises that are used as
work opportunities to earn a living, which are more commonly known as the
informal sector.

2. Micro Enterprise, which is a small and medium-sized enterprise which is

a craftsman but is not yet entrepreneurial.

3. Small Dynamic Enterprise is a Small and Medium Enterprise that has an

entrepreneurial spirit and is able to accept subcontract and export work.

4. Fast Moving Enterprise, is a Small and Medium Enterprise that has an

entrepreneurial spirit and will transform into a Large Business (UB).
MSMEs are productive businesses owned by individuals and business
entities that have met the criteria for being a micro business and in the
legislation no. 20 of 2008. In accordance with the definition of MSMEs,
each is differentiated including:

1. Micro Business: this business entity has a turnover or net worth of IDR
50,000,000, excluding buildings and land. In addition, the proceeds from
the sale of the micro business must reach a minimum of Rp. 300,000,000,
(one year term).

2. Small business: a small business if the business has a net worth of Rp.
50,000,000 with a maximum use of Rp. 500,000,000. The sales results
obtained during one year reach a minimum of IDR 300,000,000 and a
maximum of IDR 2,500,000,000. 3. Medium-sized businesses: assets of
medium-sized businesses reach Rp. 500,000,000 to Rp. 10,000,000,000 at
 49

present and do not include land and buildings. With the result of annual
sales, it must reach IDR 2,500,000,000 to IDR 50,000,000,000.

Berryman, J. (1994) conducted a literature review and analysis on small

business failure, identifying managerial inefficiency as the primary cause.
Additionally, she identified poor financial management as the primary
cause of small business failure. According to the findings of her survey, the
most significant issues in the finance function included a lack of or
inadequate accounting records as well as a lack of accounting expertise.
She ranks other important financial aspects in order of importance based
on survey results:1.2. inventory management, 3. Credit management
Analyses of liquidity and cash flow, 4lack of initial capital, control over
accounts payable, fixed asset administration, and Lack of funds According
to William (1986), accounting incompetence and inexperience,
incompetence in management, and poor financial management accounted
for 28% of small business failures. In his survey, he also found that the
most problematic aspects of the finance function in failed businesses were
poor accounting records (55 percent) and inability to use financial
statements (18 percent).According to the study, poor accounting and
ineffective financial management of the finance function are the most
important aspects of functional management.

Jarvis, et al. (1996) argue that approaches based on using the reality of the
environment in which they operate can better understand the decisions
made by small owners, challenging the assumption that small businesses
have poor financial management.
 50

Shaw has also demonstrated, employing "grounded theory" and an

ethnographic method, the significance of bartering in the networks of small
businesses, as well as the sophisticated financial exchanges and
knowledge exchanges that these entrepreneurs engage in.

Grablowsky (1984) discovered that large and small businesses use

different stock control strategies. The smaller businesses used judgment
(6%), anticipation (32%), and no method, while the larger businesses used
statistical methods. In their survey, Nayak and Greenfield (1991) addressed
the concerns of West Midlands businesses. The study came to the
conclusion that SMEs are a long way from having access to a dependable
system for controlling inventory.

The information that small and micro businesses use to control their
businesses and how they use it was the subject of this survey. The difficulty
of keeping records, gathering data, and keeping books was the subject of
the study. The study also found that the cash book is the most common
type of financial record, but the owner-manager's use of this information
was a major issue. They came to the conclusion that the SMEs require
guidance in areas like keeping records of debtors and pursuing debts; at
the beginning, to develop simple systems for gathering information to avoid
failure, well-designed budget pro forma, assistance with weekly profit
calculations, and assistance with business monitoring.

Strategy Management is "An on-going and repetitive process that is

directed towards the maintenance of an organization as a unit that is in line
with its environment to achieve a sustainable competitive advantage
(Purwanto, 2006)". In determining the strategy some important things must
 51

be considered so that the company's goals can be achieved efficiently.

Forces affecting Industrial Competition Elements that directly affect the
company include competitors, customers, and suppliers. The state of
competition in an industry depends on 5 (five) underlying strengths of
competition among others (David, 2011):

(1) Threat of newcomers, It can be interpreted that the possibility of a

company entering an industry will be faced with two factors namely an
obstacle to entering industry (barriers to entry) and a reaction from an
existing company;

(2) Threat of replacement products, the threat of replacement products will

be a strength if consumers are faced with switching costs and if the
replacement product has a cheaper price or the same quality is even higher
than the products of industry;

(3) Buyer's bargaining power, In these conditions the buyer will minimize
the cost by trying to ask for higher product quality, better service, and
cheaper price. These conditions will lead to strong competition among
companies in the same industry;

(4) Bargaining power of suppliers, Suppliers can put pressure on

companies in an industry by raising prices and lowering the quality of the
products they sell. If the company is unable to cover its rising costs through
its pricing structure, then the company's profit capability may decrease due
to the actions of the supplier;
 52

(5) Among companies in the industry, This can happen because one or
more co.
 53

CHAPTER 4

RESEARCH
METHODOLOGY
 54

DATA COLLECTION

This research adopts secondary data sources. Secondary data were collected from

• published and unpublished reports,

• books,
• journals and
• online resources.

It involves identifying the internal and external factors that are favourable and
unfavourable to achieve the above mentioned objective. They are explained below.

This study prioritizes the use of qualitative description methods. In research

conducted in order to obtain relevant data for further discussion. This research is
intended to obtain a comprehensive picture of the analysis of MSME development
through digital SWOT analysis which is supported by various parties internally and
externally.

Strengths are the characteristics of the business or team that give it an advantage
over others in the industry.

 Weaknesses are characteristics that place the firm at a disadvantage relative to

others.

 Opportunities are external chances to make greater sales or profits in the

environment.

 Threats are external elements in the environment that could cause trouble for the
business
 55

CHAPTER 5

Discussion &
Conclusion

CONCLUSION
 56

In a India More than 40 laws apply to MSME and more than 50 inspectors can visit

their factories they also has powers to penalize small businesses. It is difficult to

focus on important areas such as production, marketing and technology upgrades

in this environment. There are a number of laws applicable to MSME

that have lost their usefulness at that times and there are a number of laws that

hinder the healthy operation of Enterprises. So Such meaningless laws need to be

abolished. In this condition government is abolish some unusable rules and

regulation. The current government has repealed 1,200 laws under this process and

identified more than 1824 such laws, Which can be abolish. New entrepreneurs need

to provide single window operating system, some states has already initiative it.

SWOT analysis helps to understand the internal and external factors that are useful

not only for MSMEs but also for large businesses and other organizations As a result

of globalization, MSMEs are facing many problems. It is therefore important to

understand the weaknesses and strengths that can be better. understood by

SWOT analysis, In This research Article researcher attempts to explain the

strengths, weaknesses, opportunities and challenges associated with all aspects

related to MSME. so we can understood the current business environment.

 57

RESULTS AND DISCUSSION

As for analysing the research results using the SWOT analysis, it can be concluded

as follows:

1. Strength is the internal situation of the organization in the form of competence

/ capability / resources owned by the organization, which can be used as an

alternative to deal with and threats.

2. Weakness is an internal organizational situation in which the organization's

competence /capability / resources are difficult to use to deal with

opportunities and threats. The following could be the reasons of weaknesses:

a) Small business scale.

b) Members who actively participate are around 50%

c) The quality of human resources is lacking.

3. Opportunity is an organization's external situation that has the potential to

benefit.

4. Threat is an external situation that has the potential to cause difficulties.

SWOT Matrix After knowing the strength (strength), weakness (threat), opportunity

(opportunity), threat (threat) that exist in MSMES, and then the next step is to
 58

compile a SWOT matrix. The SWOT matrix is an important tool for the chairman of

MSMEs to be able to develop four types of strategies, namely: SO (strengths

opportunities), WO (weakness-opportunities), ST (strengths-threats), and WT

(weaknesses-threats).

1. SO strategy is a strategy that is determined based on the mindset of the

MSME team, namely to utilize all strengths to take advantage of the greatest

opportunity. This is a positive aggressive strategy, namely attacking with

initiative and planning. Data of programs or activities to be implemented,

when and where to implement them, so organizational goals will be achieved

in a planned and measured manner. In the SO strategy, MSME players

pursue opportunities from outside by considering the strengths of the MSME

players. The strategies developed based on this analysis are:

• Improve product quality the quality of existing products should be continuously

improved. This is due to the nature of jenang which has a relatively short

consumption period. By maintaining the value of health, it is necessary to

continue to make efforts so that the jenang product has long enough durability

so that it can be marketed to other regions

• Increasing promotion with the support of the local government also plays an

important role in developing jenang business in MSMEs

2. WO strategy is a strategy that is determined based on the use of existing

opportunities by minimizing weaknesses in the organization, including

optimizing the activeness of members of Micro, Small and Medium

Enterprises. SWOT analyses in business development, internal problems or

 59

weaknesses that exist within the organization are more important to find

solutions, so that the achievement of this great opportunity needs to be scaled

down a little. In this case AUTHORS / PRIMANOMIS : JURNAL EKONOMI

DAN BISNIS - VOL. 19. NO. 2 (2021) 8 organizational weaknesses need to

be corrected and solutions sought to obtain these opportunities. The strategy

identification from the results of this analysis are:

• Increase the scale of the business to develop micro, small and medium

enterprises. This requires government support, especially local

governments, so that small and medium scale Micro Enterprises can

be developed to capture market opportunities that are still open.

• Procurement and periodic guidance from local governments as an

opportunity to improve the quality of human resources for each small

and medium Micro Business actor

3. ST strategy is a strategy that is determined based on the strengths of the

organization to overcome detected threats. This strategy is known as a

diversification strategy or difference strategy. That is, no matter how big the

threat there is, panic and haste will only worsen the atmosphere, for that

reason that organizations that have great power that are independent and can

be used as weapons to overcome these threats are expected to be able to

identify strengths and use them to reduce external threats. . The strategy

identification from the results of this analysis are: Increase interest in

entrepreneurship Micro, small and medium enterprises .This role can be taken
 60

by the government, for example by providing entrepreneurial encouragement

in these products.

• Increase creativity in advertising through the market place. The use of

the internet as a promotional medium continues to be improved so that

these typical can be spread to other areas.

• The government is trying to increase awareness and love, for example

the availability of food at routine events, such as meetings and other

gatherings.

4. WT strategy is a strategy that is implemented in the form of activities that are

defensive in nature and try to minimize existing weaknesses and avoid

threats. What needs to be done is together with all elements of the

organization to plan an activity to reduce organizational weaknesses and

avoid external threats. The strategies identified in this analysis are:

• Conducting joint promotions, organizing activities as well as fostering

micro, small and medium enterprises that are still in the pilot stage and

are still not developing.

• The emergence of substitute products can be anticipated by increasing

product innovation, for example: in variations in taste, packaging,

presentation and etc.

 61

SUGGESTIONS

The following suggestions are made to florist the MSME sector:

• Techniques

Equipment and imported SE series may be insured by suitable measures.

The supply of good raw material should be regular and at reasonable rates.

• Marketing Support to MSMEs

Marketing is the most important in business development that leads a

product from creation to customer through different channels. Marketing is
a fabulous activity that requires constant update on the marketing
intelligence and new tools of marketing.

• Skill Development

Lack of Skilled Manpower and Information as well as lack of reaching to

the modern technology are the issues affecting the growth of MSME sector.

The ministry conducts a large number of short term as well as long term’

cause it’s to trained employed youth to self employment to provide

necessary skill to the youth to make their eligible for wage employment and

also the upgrade the skill level of existing workers and entrepreneur of

MSMEs sector.
 62

• Improvement the Quality

The Micro Small and Medium Enterprises units should improvement the

quality and aesthetics of the packaging in order to attract to the customers.

• Rate of Interest

The Bank should provide Short Medium and long term loan at the lower

rate of interest to Units. 24 International Journal of Innovations & Research

Analysis (IJIRA) - January - March, 2022

• Support from the Government and the Bank

The proper support from the government and bank two face cut throat

Competitions should be given to utilized the production capacity to fulfill the

objectives of the organization. MSME's need to be supported by central

and state government and financial institutions.

• Effective National Economic Planning

Government should have effective national economic planning where

intense competition among MSME units will lead to continuous

improvement in productivity national cohesion and solidarity.

 63

References
 64

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