Consideration of Risks and Resilience Leading to New Policy Framework for Micro, Small, and Medium Enterprises (MSMEs) in India

Micro, small and medium enterprises (MSMEs) significantly contribute to Indian economy, and they provide livelihoods of the largest numbers of people. Climate change, disasters and other socio-economic and well as geo-political risks pose significant threats to the MSMEs, especially to those enterprises in the informal sector. In this study, vulnerabilities of MSMEs are assessed through qualitative meta-analysis to synthesize qualitative findings. The study highlights that gender disparity among the enterprises, regional disparities in terms of their growth as well as formal registration, and their adaptation to digitization, urbanization, disasters and climate change impacts are to be considered in the framework of risks, resilience, and recovery strategies of MSMEs. A policy framework is proposed to enhance entrepreneurial ecosystem in India through: (1) creating self-assessment avenues for MSMEs, (2) imparting educational opportunities for MSMEs against economic distress due to secondary perils, (3) nurturing collective disaster-preparedness for the MSME sector, and (4) exploring new forms of assistance for the MSME sector. Implications for further research are also drawn to support entrepreneurial resilience.