National Management Support Corporation (NMSC) : A New Model for MSME Empowerment and Youth Employment

India’s growth story is incomplete without its Micro, Small, and Medium Enterprises (MSMEs), which serve as the backbone of the economy by contributing nearly 30% of GDP, 45% of exports, and employing over 110 million people. These enterprises are not just businesses; they are the livelihood generators for millions of families, the drivers of rural industrialization, and the foundation of inclusive growth.

Yet, despite their immense potential, countless MSMEs struggle to sustain or scale due to poor access to finance, limited knowledge of compliance, lack of professional management, weak branding, and minimal adoption of technology. On the other side of the spectrum, every year lakhs of management graduates pass out from universities and business schools across the country, only to face unemployment or underemployment because of limited absorption into the corporate sector.

This paradox presents an untapped opportunity: what if India could channel its vast pool of trained management professionals into supporting and guiding MSMEs? By creating a National Management Support Corporation (NMSC) under the Ministry of MSME, the government could simultaneously address unemployment and strengthen the MSME ecosystem, paving the way for inclusive growth, greater self-reliance, and a stronger economy.
 

The Challenges Facing MSMEs

While MSMEs contribute significantly to India’s economy, they face persistent challenges that hinder growth:

• Financial Struggles: Difficulty in accessing affordable credit, navigating GST compliance, and meeting financial regulations.
• Marketing and Branding Gaps: Limited resources for advertising, weak digital presence, and inability to reach wider markets.
• Operational Inefficiencies and Technology Lag: Low adoption of modern processes, quality certifications, and digital tools.
• HR and Skill Shortages: Lack of structured workforce planning, skill development, and retention strategies.
• Difficulty in Scaling Up: Challenges in competing with large corporations and entering global supply chains.

These hurdles often push small businesses into stagnation or closure, despite their potential for growth.

The Unemployment Dilemma

Parallel to the struggles of MSMEs is the paradox of educated unemployment. Every year, India produces lakhs of management graduates, trained in crucial domains such as finance, strategy, HR, marketing, and operations. These are precisely the skills small businesses lack.

Yet, the corporate sector cannot absorb this enormous talent pool. Many graduates end up underemployed, working in jobs far below their qualification level, or outside the workforce altogether. This mismatch wastes valuable human capital and fuels social frustration.

On one side, MSMEs need management expertise but cannot access it. On the other, graduates have expertise but lack meaningful opportunities. Bridging this gap through a structured framework could create a win–win: MSMEs gain professional support, while graduates gain employment and purpose.

Learning from Global Models

Several nations have addressed this issue by institutionalizing support for small businesses.

• United States – SBA: Provides mentorship, training, and loan guarantees, ensuring small businesses can access both finance and guidance.
• Canada – BDC: A state-owned bank offering a hybrid of affordable financing and management consulting, enabling SMEs to modernize.
• Singapore – Enterprise SG: Subsidizes consultancy costs (up to 70%), runs SME advisory centres, and supports export readiness.
• Germany – KfW Mittelstandsbank: Offers low-interest loans, innovation funding, and advisory services, supporting Germany’s globally competitive Mittelstand.

Credit alone is insufficient. Professional advisory services, backed by government facilitation and private-sector participation, are the key to SME empowerment.

National Management Support Corporation (NMSC)

To address India’s twin challenges, a National Management Support Corporation (NMSC) under the Ministry of MSME is proposed.

Structure
A government–industry partnership, with government backing for legitimacy and industry bodies (CII, FICCI, ASSOCHAM, AIMA, NASSCOM, etc…) ensuring efficiency and innovation. Regional and district-level MSME Support Centres would provide grassroots access.

Role
Deploy trained management teams to directly assist MSMEs, much like Chartered Accountants support financial compliance. These teams would be the trusted growth partners of small enterprises.

 Services

• Finance: Business planning, compliance, GST, and loan facilitation.
• HR: Talent recruitment, training, retention, leadership development.
• Marketing & Branding: Digital presence, e-commerce, packaging, market expansion.
• Operations & Technology: Quality certifications, ERP, supply chain management, digital adoption.
• Exports: Guidance on global markets, documentation, trade compliance, partnerships.
   

Funding
 A Public–Private Partnership (PPP) model, with seed funding from the government, nominal contributions from MSMEs, and additional revenue from training programs and partnerships.

Expected Impact

The NMSC would generate transformative results:

• Employment Generation: Absorb lakhs of MBA and management graduates, turning idle talent into productive human capital.
• MSME Empowerment: Improve survival rates, competitiveness, and scalability of small enterprises.
• Economic Growth: Boost productivity, expand exports, and broaden the tax base—contributing to India’s $5 trillion economy target.
• Atmanirbhar Bharat: Foster true grassroots self-reliance by enabling small businesses to thrive without constant subsidies.

Why Now?

The urgency for such a reform cannot be overstated.

• Post-Pandemic Recovery: MSMEs hit hardest by COVID-19 need structured support to bounce back stronger.
• Viksit Bharat @ 2047: India’s vision for becoming a developed nation depends on empowering MSMEs and creating high-quality jobs.
• Global Competition: With shifting supply chains and rapid technological change, Indian SMEs must modernize to remain globally competitive.

The present moment offers India a unique opportunity to act boldly and decisively.

India today has the chance to solve two challenges with one solution: tackling unemployment among educated youth while strengthening MSMEs. A National Management Support Corporation (NMSC) would bridge this divide, transforming management into a nation-building profession.

Just as the Institute of Chartered Accountants of India (ICAI) institutionalized the CA profession, the NMSC could institutionalize management as a structured, service-oriented profession—vital for economic growth and self-reliance.

With this step, India would not only empower its small businesses but also unleash the full potential of its youth, driving the country closer to its dream of Atmanirbhar Bharat and Viksit Bharat @ 2047.

By Manoranjan Swain
Lecturer in Commerce

(The content of this article reflects the views of writers and contributors, not necessarily those of the publisher and editor. All disputes are subject to the exclusive jurisdiction of competent courts and forums in Delhi/New Delhi only)