Micro, small and medium enterprises (MSMEs) can be the biggest generator of employment, creating eight jobs on every Rs. 1 crore of investment compared to large industries that generate far fewer, former additional chief secretary Amit Mohan Prasad said. Speaking Vision 2047 Conclave, Prasad stressed that MSMEs not only provide gainful work opportunities to youth and women but also build local entrepreneurship. "Large industries play an important role but MSMEs reinvest profits within the state and nurture entrepreneurs who gradually grow from micro to small, medium, and big", he said. Highlighting the sector's contribution, he said that MSMEs accounted for more than 30% of India's GDP, 35% of manufacturing, and over 50% of exports. Uttar Pradesh, with over 96 lakh MSME units, the largest base in the country is emerging as a key hub.

In 2023, for the first time, credit disbursed to MSMEs in the state surpassed agriculture, a shift Prasad described as an "inflection point" in the state's economic growth. Prasad also underlined several challenges that continue to hold back the full potential of MSMEs. He said that access to institutional finance was still limited, as banks were often reluctant to extend collateral free loans despite govt schemes such as the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).

He stressed the importance of overcoming market barriers, urging entrepreneurs to actively use digital platforms like the Trade Receivables Discounting System (TReDS), Government e-Marketplace (GEM), Open Network for Digital Commerce (ONDC), and e-commerce channels to widen reach and secure timely payments. Prasad said that the growing adoption of technology and artificial intelligence could deepen inequalities if these tools only empowered large corporates while leaving smaller firms behind. "Technology must act as an equalizer rather than a divider", he said. He warned against overdependence on the idea of a demographic dividend, noting that merely having a young population was not enough. For long-term economic stability, he emphasized the twin needs of population stabilization and consistent growth in per capita GDP. "MSMEs will be central to Uttar Pradesh's march towards becoming a $1 trillion economy by 2047. However, population stabilization and higher per capita GDP must also be pursued alongside industrial growth", he said.