Arguing for safeguarding India’s small businesses from global economic uncertainties, the Institute of Small Enterprises and Development (ISED) has suggested a new policy framework. This proposal, part of the India MSME Report 2026, aims to enhance support for MSMEs beyond subsidies and promotional initiatives towards a comprehensive risk mitigation strategy.
The report emphasizes the concept of enterprise security, advocating for the protection of micro, small, and medium enterprises as a crucial economic priority, akin to National Food Security principles. It highlights the heightened vulnerability of MSMEs compared to larger businesses during economic downturns, geopolitical tensions, and health crises.
ISED points out that conventional crisis relief measures like emergency credit support are insufficient in addressing the deeper structural challenges faced by MSMEs. These challenges include limited access to finance and technology, shrinking profit margins, and market uncertainties, necessitating a more sustainable policy approach.
In response to these issues, ISED has introduced the Enterprise Security and Resilience Framework, calling for collaborative efforts among governments, financial institutions, insurance companies, and promotional agencies. The framework aims to assist entrepreneurs in managing escalating risks that endanger business sustainability by ensuring access to critical resources like affordable credit, technology, and market opportunities.
