The Micro, Small and Medium scale industry is the largest sector of economic activity in India. There is growing realization about potential contribution of micro, small and medium industries in the countries. The micro, small and medium scale industry is rightly considered to be the backbone of any developed economy. The present research paper deals with opportunities and threats for micro, small and medium enterprises in the context of Hand made paper industry in Uttar Pradesh. The research paper also discusses the concept of Micro, Small and medium enterprises (MSMEs ) also known as micro, small and medium scale enterprises are the essential part of healthy economy. The MSME sector represents over 90 percent of enterprises in most of the developing countries and contributes 40-60 percent of the total output or value added to the national economy. MSME sector in India is the key driver of the nation's economic growth with a contribution of over 40 percent of the country's industrial output and about 35 percent of direct exports and another 15 percent of indirect exports. In terms of employment it is a very crucial sector being the second largest sector after agriculture. In recent years the MSME sector has consistently registered higher growth rate compared to industrial sector. Small is beautiful but is it Powerful? Yes, say the MSMEs. The growth recorded by SSI in India is 2% more than any other sector; it accounts for 40% of the country’s GDP, 35% of Direct exports, 15% of Indirect Exports (through Merchant Exporters, Trading Houses & Export Houses) and employs more than 20 million people. The SSIs needs just Rs. 60, 000 – 70, 000 to generate employment for one man, while for the same a whopping 5-6lakhs is required for other sectors. MSME sector faces a number of problems - absence of adequate and timely banking finance, limited knowledge and non availability of suitable technology, low production capacity, in effective marketing and identification of new markets, constraints on modernization and expansions, non availability of highly skilled labour at affordable cost, follow up with various agencies in solving regular activities and lack of interaction with government agencies on various matters.MSMEs have strong technological base, international business outlook, competitive spirit and willingness to restructure them shall withstand the present challenges and come out with shining colours to make their own contribution to the Indian economy .discussed
