Smes In India

Read Complete Research Material


SMEs in India

SMEs in India


Different definition and concept of small and medium enterprises from one country to another according to the different capabilities and economic and social conditions such as the nature of the components and factors of production, and quality of traditional crafts list by modern industry, population density, availability of manpower and the degree of rehabilitation, and the general level of wages and income, and other economic and social aspects that define the nature of the existing industries. It also varies according to the definition and purpose of it, whether it is for statistical purposes or for financing purposes or for any other purposes.

In short, the industrial and developing countries differ in the definition of small and medium enterprises, which makes it difficult to make comparisons between them, which is considered medium-scale enterprises in developing countries are small in industrialized countries, and large projects in developing countries are medium in industrial countries.

In order to cope with the difficulties in comparing the practice of many developed and developing countries to adopt the ILO definition, which defines small enterprises as enterprises with fewer than 10 workers and medium-sized enterprises that employ between 10 to 99 workers, and more than 99 are large projects.

Characteristics of SMEs in India

A high percentage of Indian small and medium enterprises engaged in a variety of service activities (59.2%). Trade and industry are next in importance with 21.5% and 19.3% respectively. Although no official figures on informality in SMEs, it is estimated that a significant percentage of them holds informal business practices, due to the high costs of operating dependability.

Thus, while in 2003, it required 19 procedures to start a new business, now requires 13. Similarly, since 2003 costs as a percentage of income per capita has been reduced from 29% to 20%. These advances are due in part to the implementation of Business Service Centers.

However, it is still necessary to improve other procedures that employers must take to open your business, including registration of employees to social security, the ICBF and compensation funds, among others (Knight, 2002, 12).

Advantages of Small and Medium Enterprises in India

Furthermore, the role of small and medium enterprises in India in achieving economic and social development, as they represent a large part of the production sector in different countries, whether developed or developing, and gives many countries particular attention by, for example, are small and medium industries key to development in the Republic of India has accorded excellent support so-called spoiled son of a government, and provide small and medium enterprises many advantages which can be summarized as follows:

- Ease of establishment due to lack of need for capital-intensive or sophisticated technology, in addition to its ability to produce and work in the areas of industrial development and economic fields.

- Providing job opportunities and investment cost is low and that the nature of art production used as a method of production, labor-intensive light of capital, as well as the modest qualifications of the labor ...
Related Ads