Value creation by reviving sick MSME units

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Value creation by reviving sick MSME units

21/02/2018

There are a lot of chance to revive sick MSME operating units. Let’s do SWOT analysis.

Strength: 1. There is infrastructure in operation.

  1. A lot of intangible assets like respect customers deep understanding Customer behaviours.
  2. Skilled workforce.

Weakness: Most unit will say finance is a problem. During last 27 months and 15 units later, it is planning and execution is a problem. With little financial support and many dilemma resolutions, a unit can start using idle capacity better.

Opportunity: By expanding market reach, use of digital technology, a cost can be reduced or market penetration can be increased.

Threat: Most critical threat is an attitude of an entrepreneur, his behaviour may be different once his immediate problems are resolved.

Banks are not ready to understand the mechanism and they inordinately delay reviving/rescheduling loans. If all branch of bank resolves one case a month, at least 100000 to 200000 units i.e., 20 lacs to 30 lacs jobs Can be solved.

Happy Holi

   

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