SME growth trajectory - Epochal role of SMEs in India's GDP. - Biggest employment generator SME cluster - Sectoral and geographical concentration of enterprises - Homogenous Unit - Cluster concept – Answer to global competition - Shared resources reduce costs Challenges to Indian SME Cluster - Technological obsolescence - Inadequate linkage with marketing channels - Absence of common initiatives - Ambiguous and multiple processes
- Networking - Gain competitive advantage - Rise to collective benefits - Creation of inter-firm co-operation Stepping up growth.... SME Cluster
Technology...Essential tool for Inclusive Growth SMEs & the Internet - Cost-effective solutions for Business Operations - Market to world 24X7, sitting in your office - Find hidden markets, new buyers and suppliers - Adopt ICT for process automation - Better Reporting & Performance Measurement - Informed Decisions & Analytics - Proper Delegation of Jobs & Resources
Ensuring Cluster Development - Government initiative – SME friendly policies - Financial institutions to formulate flexible lending norms - Foster culture of collaboration among clusters
Need of the hour… - Customized Solutions: Different clusters have different dynamics and hence different needs. - Outsource: Govt. should facilitate the process as policymaker and outsource implementation through PPPs. - Learn to collaborate to win . - Go Global . Internet must be part of business as a new channel of sales . - Be on your own .
THANK YOU ASSOCHAM National Summit, February 09, 2011. New Delhi. ARUN TYAGI [email_address] Twitter: twitter.com/aruntyagi77 Linkedin: linkedin.com/in/aruntyagi77