Ease of Doing Business for MSMEs: While Retaining Innovation one has to 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
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.
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 the regulatory compliances 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.