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Special insolvency relief framework for Covid-hit MSMEs in the works

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SME: Stressed & moribund: To understand the fundamental problem with SMEs, look at the owners

Synopsis
A typical SME does not have innovative or unique products for which it can charge a price premium. It does not have the cash to invest in build a brand through which it can charge a premium.
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An SME is squeezed both on the revenue side, by having little ability to charge a price premium and on the cost side due to lack of scale and access to low-cost capital.
When economists and policymakers talk about SMEs (small and micro enterprises), they usually define them, in the Indian context, as enterprises with fewer than 10 employees and earning less than Rs 50 crore annual revenue. By that definition, there are about 50-75 million such enterprises in India. ....

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