1. BARRIERS TO TECHNOLOGY ACQUISITION
AND PRODUCT INNOVATION DEVELOPMENT
IN SMSEs OF INDIA
Ragavendra & Monish.R.M
VIT University

2. Introduction
• Gandhi’s view of Indian economy
• 80% industrial enterprises
• Economic reforms of 1991
• With total industrial output 40% over
8000 value added products
• Contributes 40% of nation’s balance of
payment

3. About SMSE’s
• “The term enterprise in the manufacturing context stands for an
industrial undertaking or a business concern involved in the
production, processing or preservation of goods for the list of
eligible industries in the First Schedule to the Industries
(Development and Regulation Act), 1951”
• Micro enterprise < 25lakh rupees.
• Small enterprise > 25lakh rupees but < 5 Crore rupees.
• Medium enterprise > 5 Crore rupees but < 10 Crore rupees.
• Ministry of Small Scale Industries defined exclusion of – land,
building among others.

4. Objectives of the study
• To study about the SMSE sector in India
• To know the contribution of SMSE’s to the Indian economy
• To understand the importance of technology and innovation in
the development of SMSE’s and the barriers obstructing their
procurement in this context
• To analyse the role of the Government in removing these
barriers prevailing in this sector
• To examine the contemporary strategies prevailing in the SMSE
sector

5. Technology
• “A systematic application of scientific or other organized
knowledge to practical tasks”.
• It is dynamic in nature and self-reinforcing.
• Technological environment exerts considerable effect on
business.
• It is one of the influencing factor for SMSEs’ survival.

6. Innovation
• “Innovare”
• Radical Innovation
-Sweeping new technology
• Incremental Innovation
-Change in an existing technology system

7. Findings
• “The first and foremost barrier is the lack of capital limit in the
MSME’s
• Lack of expertise management skill in the MSME firms
• Lack of awareness in these firms about the latest happenings in
the technological era
• Resistance to change
• Loss of jobs due to technological modernisation

8. Suggestions
• Increase the capital limit of the firms, and to provide them
financial aids
• Technological aids can be provided to these
• Seminars and Info-points can be set up
• The government should strive to facelift the image of SMSEs’
against large firms

9. CONCLUSION
• SMSES’ are considered as the backbone of Indian economy
• Crucial for domestic market
• Steps have to be taken to ensure sustainability of this sector