At the businessline MSME Growth Conclave 2026, industry leaders highlighted a growing challenge for small businesses—attracting, training and retaining skilled talent.

Panellists pointed out that MSMEs often invest in building employee skills, only to see talent move to larger firms offering higher pay. Alongside this, rising compliance costs and evolving skill requirements are adding to operational pressures.

Experts also noted a gap between academic training and industry needs, with practical problem-solving skills becoming increasingly important. Beyond pay, factors such as workplace experience and employee engagement are emerging as key to retaining workers.

The discussion also explored how AI could help MSMEs improve productivity, even with limited resources, and why compliance should be seen as a growth enabler rather than a burden.

With talent shortages and structural challenges persisting, can MSMEs build a sustainable workforce for the future?

Watch the full discussion to know more.

Published on June 27, 2026