MSME and sustainable development is essential in today’s world. Have you ever thought of the importance of industrialization and how it executes production in order to advance and flourish sustainably? We have discussed all of it in detail below. Did you know that of over 64 million firms, the MSME sector directly or indirectly employs over eleven million people, accounting for one-third of India’s GDP? In India, approximately 44 million MSME entities are accountable for 35 percent of the country’s overall exports and 45 percent of the country’s industrial output. The MSME sector has an annual energy consumption of about 50 million tonnes of oil. However, as a leader in the field of consuming energy, individuals need to take appropriate measures to generate efficiently and utilize renewable energy. Sustainable development is possible through the adoption of environmentally friendly technologies. But how can SMEs contribute to sustainable development? Keep reading to learn about it.
The Vital Connection Between MSMEs & Sustainable Development
There is no denying that green technology aids in sustainable development and is beneficial for both industrialization and the environment. To ensure that our planet can support life for generations to come, we must:
- Make decisions that are good for the environment
- Take the necessary precautions to protect the natural world
- Focus all of our energy on preserving the environment
This has been a very significant topic since people are fully aware of the consequences their businesses and individuals have on our surroundings. It’s not enough to reduce household trash and energy use. Our focus should be on the processes that will lead to sustainable growth in the future and on conserving the earth by putting eco-friendly technologies into practice.
Today, sustainability is one of the most discussed topics in development. India’s government has pledged to take national and international action to protect the planet’s ecosystem. The government’s commitment to sustainable economic growth while promoting social inclusion is shown in initiatives like Zero Impact. It encourages MSMEs to raise the bar on product and service quality without negatively impacting the world. The consumption of resources, such as fossil fuels, becomes increasingly essential as we strive to make manufacturing a crucial part of sustainable economic development. Therefore, you must understand that the nation’s goal of sustainably constructing itself will be realized with the help of agriculture, manufacturing, and the service sector.
Empowering MSMEs for Sustainable Growth via Government Initiatives
It is a well-known fact that large corporations have access to a wealth of resources and expertise. MSMEs deserve special consideration because they account for the following:
- Half of the total manufacturing output
- Generate many job opportunities for people
The government has supported many schemes and regulations to help businesses adopt and expand without negatively impacting the environment, particularly MSMEs recently registered. The ministry of micro, small, and medium enterprises and a number of other organizations and trading bodies can take full advantage of government programmes like:
- CLCSS stands for Credit Linked Capital Subsidy for Technology Upgradation
- ASPIRE stands for A Scheme for Promoting Innovation
- Technology Upgradation and Quality Certification’s ZED Certification Scheme
- Rural Industry and Entrepreneurship
- Design Clinic for Design Expertise to MSMEs.
Several technologies, approaches, and models are already available to a wide range of industries, and they are for those who have identified the significance of sustainable economic growth.
Navigating Schemes for MSME and Sustainable Development
In India, micro, small, and medium-sized enterprise (MSME) owners can use several educational initiatives. The Indian government is encouraging MSMEs to use renewable energy in their operations. The following are examples of possible approaches:
Solar roofing system
Rooftop solar panels can help small and medium-sized enterprises (SMEs) lower their carbon footprint and qualify for financial incentives from the government. Rooftop solar panels minimize electricity bills and save money over time. Unlike the more conventional option of using coal-generated power, this option provides constant access to electricity. Showing your organization cares about the environment can boost brand recognition with investors and consumers.
Eco-friendly technology
Eco-friendly technology has been the focus of the Indian government’s efforts to encourage small and medium-sized enterprises (SMEs). A few schemes to help businesses upgrade their technology and improve quality are ASPIRE, CLCSS, and Design Clinic for Design Expertise to MSMEs. The following are the primary outcomes of implementing these schemes, namely, improvements in:
- Efficiency
- Product quality
- Rejection rates
- Cycle times
- Promotion of environmentally friendly energy sources
These are made possible by incorporating new technologies and updating current manufacturing processes.
Sustainable energy for battery backup
Devices with sustainable energy provide a ready supply of energy from renewable sources. This strategy facilitates getting enough power whenever needed. This will let you become more energy independent and less reliant on outside power sources. Thanks to these devices, greenhouse gas emissions are lowered, and pollution is kept to a minimum.
BEE- Bureau of Energy Efficiency
The Ministry of Power under the Indian Government makes use of the agency BEE (Bureau of Energy Efficiency). The mission of this organization is to promote energy efficiency and conservation through the creation of useful initiatives. Some of them are:
- The BEE-SME program is one of the government-provided initiatives administered by this institution that focuses on SMEs’ technology upgradation and energy efficiency.
- GEF-UNIDO BEE scheme encourages renewable energy in specific MSME hubs in India.
All these programs share a common goal of inspiring MSMEs to embrace green energy to achieve sustainable growth.
Indian Renewable Energy Development Agency (IREDA)
IREDA provides funding and support for renewable energy projects to mitigate the effects of climate change and lower pollution levels. SMEs must demonstrate significant engagement to achieve a 50 percent share of fossil fuel-generated energy and 500 GW of renewable energy by 2030.
Wrap up
The procedure of obtaining a loan at a fair rate of interest and with acceptable collateral represents a significant challenge for any MSME. Incorporating sustainability concepts into a company’s strategy cannot be overstated, especially for micro, small, and medium-sized enterprises (MSMEs) in today’s market. The fact that the company is advocating for a sustainable environment gives it an edge over its rivals and positively affects the environment. As a result, MSMEs benefit from increased sales and the ability to expand.
MSMEBlog advises MSMEs on how to obtain proper financing and provides information on available funding sources. Find out more about MSME financing at https://www.msmeblog.com/.
