Problems faced by MSME’s – with special reference to Coimbatore city

Micro, Small and Medium Enterprises (MSMEs) plays an imperative role in the economic growth of the country owing to the contribution to production, exports and employment. It contributes 90% of the business world wide and employs around 50% of the world workforce this sector has been recognized as an engine of growth all over the world it is characterized by low investment requirement operational flexibility and location wise mobility substitutes. The MSME sector in India is highly heterogeneous in terms of the size of the enterprises, variety of products and services, and levels of technology. This sector not only plays an important role in providing employment opportunities at comparatively lower capital cost than large industries. This paper analyzes the definition of MSMEs, the operational performance of MSMEs in Indian economy and problems of MSMEs.