Ease of Doing Business for MSMEs: When your business is small or medium size, it is very obvious that you don’t want to stay where you are. You want to be a large-cap business. And to make this shift from small or medium business to large business, you need to innovate. Here’s exactly where the problem lies.
When businesses get started as MSMEs, they look forward to growing. However, there comes a situation where they need to follow regulations and they get trapped in the same.
Navigating regulations can be a significant challenge for businesses of all sizes. And this is particularly true for MSMEs, which often have limited resources and expertise to devote to compliance.
The Anaconda of Regulation for MSMEs
For MSMEs, there are many compliances and regulations to be followed. Any non-compliances attracts penalty and punishment. This keeps the MSMEs worried as they have to keep up with the government’s laws and regulations. Any misinterpretation in regulatory compliance leads to notices and legal charges against the company.
They have to attend to these legal notices and the owner has to run into these compliances rather than focusing on the innovations. This is exactly what we call an Anaconda of the regulations. As the owners are occupied with dealing with all the legal formalities, their business innovation stalls.
Besides business regulations, there are Labor Rules. This also creates another barrier to business growth as the company can’t hire candidates without following labor laws.
There are also external regulations. We indeed need some regulations. But, there must be some ease in following them.
Regulations concerning health and safety might be necessary for protecting consumers and employees, but they might also be oppressive for micro-enterprises.
This anaconda of regulations has held up owners so tight, that the regulations are proving to be a hindrance to the company’s growth.
The burden of compliance can take many forms, including:
● Financial costs
● Time and effort
● Limited Flexibility
In this fast-paced digital era, MSMEs want to compete and create innovations. However, these businesses are not able to build growth stories for India. As the penalties scare the owners to grow big thus making them continue as an MSME.
That’s where strategies for navigating regulations come in handy. By employing these tips, entrepreneurs can make sure that their business remains innovative while adhering to all safety and regulatory guidelines.
● Start by understanding the specific regulations that apply to your industry or product category. Do some research online or contact an expert in the field to get a better sense of what is required of you.
● Make sure all aspects of your business are compliant with current regulations – from marketing materials (including website content) to manufacturing processes and product quality control measures.
● Constantly update your employees on new regulation updates and changes so they are always up-to-date on company policy and procedures. This will help ensure customer satisfaction as well as avoid any costly mistakes down the road!
Now is the time has where we need to rethink to give fresh air and energy to our MSMEs to become global giants and help them innovate by winning the maze of regulations.