B.Veerabramham Research ScholarSKIM, S.K university Anantapur
The micro, small and medium enterprises (MSME) sector is one of the most vital sectors of the Indian economy in terms of employment generation, the strong entrepreneurial base that helps to create its share in production and mass employment. There is enough evidence to suggest that a strong and vibrant Small and Medium Enterprises sector is one of the key elements responsible for attaining financial inclusive growth. Creation of higher levels of employment per capital invested, addressing the issue of employment to a large number of the under-privileged and disadvantaged sections of society, overcoming the obstacles for rural and semi-urban prosperity, optimizing utilization of locally available resources, providing an enabling environment for the millions of young Indians to participate in the nation- building task are areas of foremost concern in Indias agenda for development.
A Small Enterprise should be considered Sick on account of the following: a) Any of the borrower accounts of the unit remains substandard for more than six months i.e. principal or interest, in respect of any of its borrowed accounts has remained overdue for a period exceeding one year. b) There is erosion in the net worth due to accumulated cash losses to the extent of 50 per cent of its net worth during the previous accounting year; and c) Unit has been in commercial production for at least two years.
1. Credit and its timely availability 2. Lack of innovative marketing practices 3. Need for Technology Management 4. Need to reduce costs by cluster approach 5. Need for Skill up gradation of manpower 6. Need for better infrastructure through dedicated industrial parks
Private participation in economic development of the state. Balanced development of tiny, Small & Heavy sectors. Strengthening of traditional industries. Promotion of Exports. Attracting NRI investments. Attracting Foreign Investment. Assured Security of life & property.
Recognition of the role of service sector. Interaction with industries. Formulation of industry specific Tailor made Packages. Review of Tax Structure. Preservation of Environment and Culture Heritage. Revitalization of existing Investments to make them productive. Up gradation of technical entrepreneurial skills. Credit Guarantee Fund Scheme For Small Industries
For entrepreneurs, small business financial management is a vital aspect of growing a profitable company. Implementing sound economic principles and keeping a close watch on cash flow will help lay a solid financial foundation for the new venture. Monetary policies and procedures for effective cash management need to be part of the entrepreneurs business plan. It is also suggested that Government should conduct special EDP’s for training the entrepreneurs in financial aspects.
Our findings strongly suggest that the provision of assistance to priority customers results in inefficiencies at the firm level, making the recipients more prone to the risk of sickness. We conclude that increased sickness rates reflect an ongoing adjustment process in the aftermath of the 1991 liberalization. Yet the shakeout remains incomplete as long as de facto exit constraints remain in place and sick firms are not actually liquidated.