In any country, India being no exception, micro, small and medium enterprises have a special place, performance vis-à-vis paradigm. Though in our country MSMEs contribute 45 per cent and 40 per cent respectively in manufacturing output and exports, the majority of enterprises are in unorganized sector. As indicated by 4th All India MSME Census, 94.49% are proprietary concerns and almost self-financed. Out of the total MSMEs in India, only 28.56% enterprises are manufacturing units; rest being service providers. In Rural India, we have 51.77% MSMEs. The percentage of Registered MSMEs is negligible, just 5.94 only, for registration under the MSMED Act, 2006, barring Medium Manufacture Enterprises is voluntary. Highest number of MSMEs are is Uttar Pradesh [11.91%] followed by State of Maharashtra [10.16%], West Bengal [10.06%] and Tamilnadu [9.61%]. Interestingly, these enterprises produce a variety of products to suit local, national and international needs. Flexible in nature they are schools of entrepreneurship also.

BMOs Presence

Precisely, the Entrepreneurs to solve the problems united, mostly arising out of Govt. Policy, Laws & Rules & Taxation, Labour issues, major infrastructure-absence, form their Industry Association. Today we witness minimum one such organization per industrial area or cluster. To add we have District/State Industries Associations plus product specific Industry Bodies. In addition to this, there are Umbrella Organizations namely Federations, Chambers, Confederations etc. Their areas of operation, style of functioning, membership mix, infrastructure and budget size may vary but in every case, not the principal Principle which is robust development of industry and business with co-ordination & co-operation of all stakeholders. These days all such bodies are termed as 'Business Members Organizations' (BMOs) and Govt. of India has a plan of grant recognition & accreditation to them based on well defined criteria. An active BMO is indeed, besides smart catalyst, essential component to deliver the progressive economic activity at different levels.

BMO Role

Looking at the dismal progress of MSMEs in Manufacturing in recent years, an Inter-Ministerial Committee was constituted by the Govt. of India to suggest short and medium term measures for accelerating manufacturing in the MSME Sector. The report deals with all related aspects, right from Start-up to Expansion to Exit and has made number of recommendations to that effect, many of which are not so new. 

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