TIE Chennai – MA FOI Connecting Dots Entrepreneur’s Survey

Indian MSME scenario

Objectives

*MSME Annual Report 2012-2013(GOI)

There are over 6000 products rangingfrom traditional to high-tech items, which arebeing manufactured by the MSME sector inaddition to provide wide range of services. Theleading industries with their respective sharesare as depicted on the right side.

According to the Fourth All India Census of MSMEs (2006-07), Tamil Nadu accounts for 14.95 per cent of the total number of operational MSMEs in India. Also, 15.24 per cent of India's micro enterprises are located in the state (the highest among all states), while 9.6 per cent of India's small enterprises (third highest among states) and 9.21 per cent of the country's medium enterprises (second highest) are located in Tamil Nadu.

Total no. of units upto Feb 28.02.2013 : 83348

Total no.of. Employment : 583436 (5.83L) 

MSME – TAMIL NADU

TIE – MA FOI Connecting Dots Survey

Objective of the Survey focusing on MSME is to Understand ::::::::::::::>

the spirit of Entrepreneurs

hip

the main challenges faced by

SME Entrepreneur

s

the expectations

from Industrial

Associations

the risk taking ability

the barriers for start-ups

Methodology

TIE and Non-TIE Members :

Reached out to Entrepreneurs through online questionnaire .

Insights from MA FOI connecting dots clients and assignments

Profile of Respondents

• Manufacturing - 20%• IT & ITES - 30%• Services (car rental,

restaurant, etc.,) – 20%• Others

(Consultancy,legal,etc.,)– 30%

Industry Sector

• Between 0-5 years - 62%• Between 6-10 years - 18%• More than 10 years- 20%

Years in Business

• Micro - 20%• Small - 45%• Medium - 4%• Large enterprises - 10%• Others -21%

Turnover

Start ups -Sustainability

Start Ups –Main Barriers

Major Issues – Current Situation

Personal traits

Appetite for Risk

Do you consider yourself a risk taker?

I enjoy taking risk, even if the chance of success is not measurable

28.6%

I only take moderate and measurable risks 40.8%

I always make careful calculations and prepare all possible back-ups to minimize the risks

28.6%

Support from Industrial Associations like TIE

Key Findings

Key Findings

•- The single largest barrier encountered by Entrepreneurs is the challenge of winning the initial Trust and Credibility around their ventures and visions from stakeholders. •- In the short-term, ensuring stability scores more importance than registering growth.•- Talent retention is the highest among current priorities of most businesses. ( Branding among stakeholders – esp. Investors and Candidates)•- 50% of the businesses see a slow market as an opportunity and have created products and services that adapt to a downturn BUT have challenges to market the same successfully. •- All businesses are optimistic about the short-term prospects of increased demands and higher profit margins.•- Majority agree that VISION is the single most important value for Entrepreneurs to become successful.

Major Challenges for MSME

Absence of adequate and timely

banking finance

Limited capital and knowledge

Non-availability of suitable technology

Low production capacity

Ineffective marketing strategy

Identification of new markets

Constraints on modernisation &

expansions Major Challenges

Conclusion

As we observe from the study and its findings, Entrepreneurs are primarily driven by their Vision and hold a common optimism over the current market situation as well as the long-term prospects for their ventures.

The largest challenge is to sustain and grow, and in this perspective we observe Entrepreneurs facing hard-walls in transforming their optimism to reality.

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THANK YOUTIE CHENNAI – MA FOI CONNECTING DOTS