Small is Significant

Training and Development Needs of Indian MSMEs

By: Mathew James Manimala

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eBook | 24 September 2025

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Although the Micro/Small and Medium Enterprises (M/SMEs) in India (as also in other countries) make significant contributions to the economy (with about 30% share in GDP, 50% share in exports, and more than 60% share in employment), their developmental needs are addressed primarily through the facilitation of the external environment. In order to take advantage of the external facilitation, M/SMEs have to develop their internal capabilities, which are hardly attended to. Training is widely recognized as a major tool for developing the internal capabilities of M/SMEs. However, there were hardly any studies on the training-related issues of Indian M/SMEs. It is in this context that the present study was undertaken for identifying the perceived training needs and the training-related preferences of M/SMEs. The study covered a wide range of issues related to training in M/SMEs, such as the perceived training needs, the preferred training contents, methods, timings, duration, and training providers, as well as the actual training provided, for various levels (owners/directors, managers, and employees) in the organization. The findings of the study and the recommendations made on their basis will be useful for researchers, trainers/consultants, and practitioners/entrepreneurs, as well as policy-makers.