Micro Small and Medium Enterprise - Problems and Prospects in India
1. 1
INNOVATIVE PRACTICES & STRATEGIES
IN
GLOBAL BUSINESS AND ENTERPRISES
By
Dr.K.Maran
Professor & Director
Sri Sai Ram Institute of Management Studies
Sai Ram Engineering College, Chennai
2. 2
SMEs
Small and medium enterprises are classified in India
based on their investment levels.
SME sector known as Indian Economic Engine
It provides vast employee Opportunity
Low Capital Cost
Industrialization in backward region
3. 3
MSME
Types of Enterprise Investment Turnover
Micro Rs 1 Crore Rs 5 Crore
Small Rs 10 Crore Rs 50 Crore
Medium Rs 50 Crore Rs 250 Crore
4. 4
SMEs
Hundred And Ten Million employees working in
SME
Number of SME 42.5 Million units in India
More than 6,000 products
5. 5
Cont..
45% of Total production in country
40% of Total Export from the country
SME contribute to 30% of GDP
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PROBLEM IN SMEs
Slow down the economy
High cost of capital
Esteem low budget for Research and Innovation
Lack of quality Man Power
7. 7
Cont..
Rising cost of Raw material
Rising Cost of Man Power
Increasing Market Expenses
Tough competition
8. 8
Cont..
Lack of adequate and timely access to finance
Investment in manufacturing sector
Lack of access new Technology
Lack of acquiring new skills
9. 9
Cont..
Lack of marketing support
Branding and Package
GST
Demonization
MNCs
14. 14
Prospects of SMEs
3. Role of the Government in the Growth of SMEs
Credit Guarantee Fund Scheme
i.This scheme is eligible for existing and new enterprises.
ii.SIDBI offers working capital loans of up to Rs. 1 crore
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Prospects of SMEs
Cont..
Credit Linked Capital Subsidy Scheme for Technology Up
gradation (CLCSS)
i.This scheme created by the MSSI (Ministry of Small Scale Industries).
ii.Capital subsidy of 15% up to a maximum of Rs. 15 lakhs for
machinery and plant modernization.
16. 16
Prospects of SMEs
Cont..
Pradhan Mantri MUDRA Yojana (PMMY)
i.PMY offers credit to SMEs from the non-agricultural sector.
ii.Business owners can avail credits under three different
schemes – Sishu, Kishore and Tarun
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Prospects of SMEs
Cont..
Financial Assistance for International Trade Fairs,
Exhibitions
i. SMEs can avail reimbursement of up to 75% on the one-time
registration fee and annual fees.
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Prospects of SMEs
4. Role of Technology in the Growth of SMEs
Mobile payments
FinTech
Cloud Computing
Big Data
AI and machine learning tools
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Prospects of SMEs
5. Rising per Capita Income
6.Increasing purchase power
7.Fullfill the need of middle level and low level Economy
people
20. 20
Conclusion
SMEs play a vital role for overall socio& economic
development only.
This is not only for India even developed and
undeveloped countries