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Small business enterprises

Small business Enterprises:India and EU

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Small business enterprises

  1. 1. Small Business Enterprises: India and EU Done by: Kocherbaeva Assel
  2. 2. • • • • • SME sector of India is considered as the backbone of economy contributing to 45% of the industrial output; 40% of India’s exports; employing 60 million people; create 1.3 million jobs every year produce more than 8000 quality products for the Indian and international markets. With approximately 30 million SMEs in India, 12 million people expected to join the workforce in next 3 years and the sector growing at a rate of 8% per year, Government of India is taking different measures so as to increase their competitiveness in the international market.
  3. 3. There are several factors that have contributed towards the growth of Indian SMEs: • funding of SMEs by local and foreign investors • the new technology that is used in the market is assisting SMEs add considerable value to their business, • various trade directories and trade portals help facilitate trade between buyer and supplier and thus reducing the barrier to trade
  4. 4. EU • • • • • • • In Europe, enterprises qualify as small enterprises if they fulfill the following conditions: Headcount < 50 Employees Turnover < 10 Million They provide two out of three of the private sector jobs and contribute to more than half of the total value addition created by businesses in EU. Moreover, SMEs are the true backbone of the European economy and are accountable for the wealth and economic growth of the region. They also play a key role in innovation and R&D in the region. There are over 23 million SMEs representing around 99.8% of all the enterprises and 57% of them are sole proprietorships. They provide two third of the total private sector employment, represent 80% of total job creation and produce more than half of EU’s added value. However the EU SMEs are struggling to grow. 9 out of 10 SMEs in Europe are microenterprises employing an average of 2 people.
  5. 5. • Considering their importance to the economy and the role they play for increasing the competitiveness and dynamics of the European economy; • Union has been taking several actions. • In order to help them realize their growth potential, the Union is working towards promoting entrepreneurship, creating a friendlier business environment, providing them assistance to explore new markets and also awarding them for outstanding activities in their sectors.