Raw materials: Due to the absence of some specific raw materials, MSMEs have to adjust and need to compromise either in the quality of raw materials or in high prices of raw materials. Both conditions add to the difficulties of such enterprises.
Finance: MSMEs have limited finance availability, making day-to-day work difficult. In addition, raising finance from commercial banks is another challenge, as these industries have poor creditworthiness and goodwill.
Managerial skills: Firms are run by individuals lacking technical, entrepreneurial, and managerial skills. Furthermore, due to a lack of education, things become even more complicated. Therefore, they can neither manage the business independently nor can hire people due to the shortage of funds.
