Exit barriers for MSMEs were less considered, says EDII

Ahmedabad, Jan 28 (KNN) As the number of sick micro, small and medium enterprises (MSMEs) have increased in Gujarat, the Entrepreneurship Development Institute of India (EDII) is working over the policy interventions with a view to counter the problem.

As per EDII Director Sunil Shukla, to evolve and strengthen the MSMEs, the institute has been involved with both the Centre and the state government.

As mentioned earlier by the KNN, that in 2016, close to 42,500 MSME units reported sick in the state, third after Uttar Pradesh (UP) and Maharashtra.

Emphasizing the barriers of the MSMEs, EDDI claimed that it takes at least five years to close down a company which is not an easy doing business. “Entrepreneurs should have the freedom and flexibility that if a business is no more viable then they should be able to close it and start another unit”, added Sunil Shukla, Director.

Expressing the differentiation between failure of an enterprise and the entrepreneur, he said that “people don’t understand that the failure of an enterprise is not the failure of an entrepreneur- both are two different things”.

Mentioning the policies of the developed countries, he added that someone fails in developed country declares himself ‘bankrupt’ and then he or she can go to a financial institution and start another enterprise.

He stressed over the need of such policies to be applied for MSMEs and as according to him large number of the MSMEs are from the ‘micro segment’.