MSMEs face more problems in tier-II, tier-III cities: KASSIA
- The Karnataka Small Scale Industries Association (KASSIA) said that Micro, Small and Medium Enterprises (MSMEs) in tier-II and tier-III cities and rural areas were faced with more difficulties and challenges than those in major cities.
- Some of the critical issues that hamper their development were absence of access to easy finance and credit instruments; serious regulatory constraints; lack of access to modern and affordable technology; lack of basic infrastructure; lack of access to modern marketing and distribution networks; dearth of skilled labour and inflexible, and archaic labour laws.
- KASSIA also demanded for upgradation of infrastructure in industrial estates/areas as the plots developed by KSSIDC and KIADB lacked proper infrastructure such as roads, drinking water, drainage, street lights, and so on.
- It also sought loans at 4% interest to MSMEs for reducing the mortality rate in the initial phase and help them establish and sustain. KASSIA sought that the subsidised funding available to SMEs should be increased to a maximum of Rs. 5 crore,
