State any three major problems faced by MSMEs?
One major problem is Finance. MSMEs face a severe shortage of adequate finance to carry out operations. They lack creditworthiness to raise capital from markets and often lack the collateral security required by banks, forcing them to rely on local financial resources and money lenders.
Another significant issue is Quality. Many MSMEs fail to adhere to desired quality standards as they focus on cutting costs. They lack the resources to invest in quality research or upgrade technology, which becomes a weakness when competing in global markets.
Thirdly, MSMEs suffer from Global Competition. They face intense competition not only from medium and large industries but also from multinational companies. These competitors are giants in terms of size and volume, making it difficult for small enterprises to survive in a globalised environment.
Explanation
The answer identifies three distinct problems explicitly detailed in the provided text: Finance (non-availability, creditworthiness issues), Quality (lack of standards and research), and Global Competition (competition from MNCs and large industries). The context also mentions other issues like Raw Materials, Capacity Utilisation, and Infrastructure, but Finance and Quality are elaborated upon with the most detail in the source text, making them strong choices for a comprehensive answer.