3Es of MSME development

MSME development
Jaya B Phaniharam

The human factor is deeply invested in growth story when its engagement with an economic entity is marked by strong work ethic and professional integrity. Building capacity workforce is an outcome of designing a suitable and effective learning experience, which is not merely skilling, up-skilling and re-skilling talent pool.

Capacity workforce matching with current industry demand is built on the premise of experiencing dignity of human worth being reflected in created models of engagement with reference to knowledge management within the economic entity. Here, knowledge management may not necessarily refer to only knowledge transfer. It significantly refers to creating a perspective towards learning and communicating knowledge derivatives in terms of human experience, leading to innovation. In this context, capacity workforce can either build or diminish the growth story of an economic entity.

Innovation as Solution

In a given scenario, innovation is not always driven by market demand. It can be simply a solution to an end user’s existing problem, which may not attract current market space. Once innovation is introduced in the market as a solution to the end user’s problem, it can command potential market demand. Therefore, the end-user as a stakeholder has a major influence on the economic entity’s existing eco-system.

The said entity may belong to any major industry sector or be aligned to allied industry segments. Space for the entity is created organically when major industry sectors are either in transition or in redundancy. Usually, allied segments open opportunities for innovation alignment. Sector-wise diagnostics, relevant analytics and efficient audits create tremendous buzz for entity space directly mapping to existing and potential demand for innovation-driven new markets.

Funding Influence

The type of funding that the entity attracts has a decisive influence on its growth potential. The funding agency and sector specifics of the economic entity are interdependent. The funding agency’s points of collaboration and exit create a transition in the entity’s business model. Therefore, it is upon the economic entity to carefully deliberate its choices in accepting the type of funding keeping in view its short-term and long-term business goals. When internal culture and impact drive a dynamic entity, as a stakeholder, the funding agency is a natural ally pitching for the entity’s growth story.

The following observations can be noticed when the MSME sector is considered representing the economic entity:
* Inadequate resource availability in areas of information, skills, funding and effective collaborations
* There is an urgent need to design a comprehensive model encompassing all the relevant stakeholders

New Window

The current pandemic has opened a new window to explore creative solutions in all aspects of development indicators, supported by technology wherever necessary to scale up the outreach. The Centre and the Telangana government have announced support to the MSME sector. This encourages to map initiatives in this sector on the Smart City platform at the pan-India level and all the 33 district headquarters platform of Telangana at the State level.

The purpose of this initiative is to review the scope for comprehensive redesigning by bringing relevant stakeholders – MSME sector, capacity building institutes, executive, media and end-user – together. All the stakeholders are participants in developing Smart City and district headquarters platforms with sustainability as a pivot. The objective of comprehensive design is to create a “Go to model” for the MSMSE sector in aspects of “policy influence” and “process impact” on the Smart City/district headquarters platform.

MSME development

Go to Model

The desired “Go to model” can be achieved by introducing suitable interventions to initiate change. The stakeholder’s interdependence is mapped to initiate “Process Impact”. The gap in inadequate resource availability is plugged and aligned to the stakeholder’s interdependency, which is noted among the following — MSME sector, executive, media and end-user. Similarly, inadequate resource availability in the MSME sector is observed in aspects of specific information, facilitation, capacity building, economic push and effective collaborations.

The selection criterion for a Smart City and district headquarters itself creates market space for entrepreneurship in the MSME sector. Scouting innovation areas considering the end user’s viewpoint with respect to the MSME sector must be listed for the expected push. Encouraging sustainable solutions in each area of innovation results in a clean economy creating “Policy Influence”.

The entire outcome of the proposed change initiative is to create a “Go to model” for the MSME sector to influence policymaking and impact process delivery. Participation of stakeholders is necessary from all areas of community and governance in designing sustainable solutions. The intention is to establish a roadmap for the MSME sector in process delivery by dealing with ambiguity in defining the role of the stakeholder and influence policy cascading all aspects of sustainable solutions from middle enterprise to small enterprise to micro enterprise.

Therefore, the “Go to model” creation for the MSME sector is to showcase Smart City/District Headquarters platform with respect to development index in the area of governance fulfilling Efficiency (Middle enterprise), Effectiveness (Small enterprise) and Empathy (Micro enterprise) — the 3Es in development, conception and delivery.

(The author is Consultant, Strategy, Learning & Development & Organisational Development, SM Consulting Services, Bengaluru)

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