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Small and medium scale enterprise
The document discusses the definitions and classifications of Micro, Small and Medium Enterprises (MSMEs) in India, including their economic contributions and challenges faced due to lack of support. It compares the MSME sectors in India, Europe, and Indonesia, highlighting the policies and structures that promote their growth. The conclusion recommends strategies for India to enhance its MSME sector, such as improving management practices and increasing government support.
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Small and medium scale enterprise
- 1. 8/19/10 1@ Allthe Data taken from official websites Small and Medium Scale Enterprise (SME’s
- 2. 8/19/10 2@ Allthe Data taken from official websites Manufacturing SectorManufacturing Sector Enterprises Investment in plant & machinery Micro Enterprises Does not exceed twenty five lakh rupees Small Enterprises More than twenty five lakh rupees but does not exceed five crore rupees Medium Enterprises More than five crore rupees but does not exceed ten crore rupees http://www.dcmsme.gov.in/ssiindia/defination_msme.htm Micro, Small and Medium Enterprise (MSME’s) definition Micro, Small and Medium Enterprise (MSME’s) definition
- 3. 8/19/10 3@ Allthe Data taken from official websites Service SectorService Sector Enterprises Investment in equipments Micro Enterprises Does not exceed ten lakh rupees: Small Enterprises More than ten lakh rupees but does not exceed two crore rupees Medium Enterprises More than two crore rupees but does not exceed five core rupees http://www.dcmsme.gov.in/ssiindia/defination_msme.htm
- 4. 8/19/10 4@ Allthe Data taken from official websites What are the main factors of SME’s? What are the main factors of SME’s? Driving Force of Country Economy
- 5. 8/19/10 5@ Allthe Data taken from official websites Why SME’s are more adoptable? Why SME’s are more adoptable? * SME’s develop sector, size, focus, resource and business environment
- 6. 8/19/10 6@ Allthe Data taken from official websites SME’s role in IndiaSME’s role in India
- 7. 8/19/10 7@ Allthe Data taken from official websites Major Sectors of SME’sMajor Sectors of SME’s
- 8. 8/19/10 8@ Allthe Data taken from official websites Facing Problems by SME’s Facing Problems by SME’s
- 9. 8/19/10 9@ Allthe Data taken from official websites Indian SME’s doesn’t get proper support from Indian SME’s doesn’t get proper support from o Government Departments o Banking Sectors o Financial institutions o Corporate sectors Because of this SME’s can’t trade on national and international market. Though its contribution in Indian Economy… o 45% of Industrial output o 40% of Export o 42 million in employment generation o More than 8000 quality products for national and international trade
- 10. 8/19/10 10@ Allthe Data taken from official websites Facts and Figures of Indian MSME’s sector (2008/09) Facts and Figures of Indian MSME’s sector (2008/09) No of MSME enterprise 13.2 million Employment generation 42.2 million Production $ 174 billion (08) Export $ 31 billion (08) Share in GDP 8% Share in manufacturing output 45% Share in export 40% www.demsme.gov.in
- 11. 8/19/10 11@ Allthe Data taken from official websites Tack a look of Europe and Indonesian SME’s Sector Tack a look of Europe and Indonesian SME’s Sector
- 12. 8/19/10 12@ Allthe Data taken from official websites Europe’s SME’s structureEurope’s SME’s structure Source: 2008/09 European commission
- 13. 8/19/10 13@ Allthe Data taken from official websites Source: 2008/09 European commission EuropeEurope Italy & Germany Italy & Germany Between 2002 – 2007 - 2million SME’s increase - Where as large no of enterprise 2000 o Italy and Greece – Highest SME’s, Employees and Micro enterprise o Germany – More no. of employment in SME’s
- 14. 8/19/10 14@ Allthe Data taken from official websites Positive Points of Europe SME’s structure Positive Points of Europe SME’s structure o Business friendly environment o European commission categories SME’s in (2005) (for simplify administrative and management) - Staff headcount - Turnover and/or balance sheet o Europe commission made Small Business Act, 2008. - In which all Europe countries became member and promote SME’s sector in structure format and develop SME friendly environment.
- 15. 8/19/10 15@ Allthe Data taken from official websites Specific areas where European Commission give relaxation. Specific areas where European Commission give relaxation. o General Block Exemption Regulation on State Aid (GBER) a statute for Europe Private Companies (SPC). o Reduce VAT rates (locally supplied services) and simplify VAT invoicing o Accepting E-invoicing as equivalent to paper invoicing o The revision of the late payment directive o To better integrate SME’s European Commission do supportive…
- 16. 8/19/10 16@ Allthe Data taken from official websites European Commission developed “SME-TEST” European Commission developed “SME-TEST” To analyse the impact of legislation on SME’s EU standardize specific SME’s measures o Improve access standards of NORMAPME (European office of crafts, trades and small and medium sized enterprise for standardization) o The EU network of female entrepreneurs and mechanisms of facilitate access to market including Europe business center in China and India. o Market access database development o Eco- management o Easy audit schemes o People programming
- 17. 8/19/10 17@ Allthe Data taken from official websites Apart from above other European Commission support to SME’s sector are… Apart from above other European Commission support to SME’s sector are… o Simplified financial and administrative procedure oPromote Education and business environment o Government policy support o Simplify communication, creating awareness and improve information structure o Reduce fees structure at the time economic crisis by 50% to 75%
- 18. 8/19/10 18@ Allthe Data taken from official websites European Commission Target 2007 to 2013 European Commission Target 2007 to 2013
- 19. 8/19/10 19@ Allthe Data taken from official websites Indonesia (SME’s role in Economy) Indonesia (SME’s role in Economy)
- 20. 8/19/10 20@ Allthe Data taken from official websites SME’s Contribution Employment and GDP of Indonesia SME’s Contribution Employment and GDP of Indonesia • SME’s share 46% • other industries, services and agriculture share 54%
- 21. 8/19/10 21@ Allthe Data taken from official websites How SME’s structure capture Indonesia economy? How SME’s structure capture Indonesia economy?
- 22. 8/19/10 22@ Allthe Data taken from official websites SME’s Policy packages offered by Indonesia Government SME’s Policy packages offered by Indonesia Government Ease of Doing Business • Granting tax incentives for MSMEs • Preparing policy for the small enterprise
- 23. 8/19/10 23@ Allthe Data taken from official websites Conclusion: What should India adopt from this two country SME’s industry? Conclusion: What should India adopt from this two country SME’s industry? 1. Increase utilization of installed capacity 2. Increase information, orientation and facilities 3. Specialized training for administrative, local, national and world market, research and development, innovation and education 4. Improve - Management - Accounting - Consulting and supporting services - Primary and industrial education level 5. Improve quality of input output by using more innovative and economic tools in all the level
- 24. 8/19/10 24@ Allthe Data taken from official websites Continue…Continue… 6. Create awareness about global trade laws 7. Subsidies import and export policy of SME’s 8. Increase the coverage of technology and up gradation fund (TUF) 9. Government should reserve rural market for SME’s and protect them from competition by big industrial houses 10. Facilitate by credit instruments support and lowering down rates for start ups and at the time of economic crises.
- 25. 8/19/10 25@ Allthe Data taken from official websites Reference…Reference… o http://igovernment.in/site/india-to-develop-1150-sme-clusters o www.oecd.org/dataoecd/37/47/34026603.pdf o http://ec.europa.eu o http://www.businessworld.in/bw/ 2009_08_01_The_SME_Whitebook_20092010.html o http://blog.optionsindia.com/2008/06/sme-sector-in-india-and-random- thoughts.htm
- 26. 8/19/10 26@ Allthe Data taken from official websites o www.aseanfoundation.org/ o http://www.indonesian-products.biz/masuk.php?subpage=about o http://en.wikipedia.org/wiki/Economy_of_Indonesia o http://www.boddunan.com/education/19-engineering/10764- small- scale-industry.html o European Commission guide for SME’s o http://www.boddunan.com/education/19-engineering/10764- small- scale-industry.html
- 27. 8/19/10 27@ Allthe Data taken from official websites Thank you for participation… Presentation by Kamal Dave…