Small and Medium Enterprise
INTODUCTION
Small and medium enterprise(SME’s) in India have a very important place in the Indian economy. Their contribution in terms of production, export, export, employment generation and all round growth of the country is well known. The role of SME sector in the nation building is well recognized not only in India, but also across the globe. The industrial engines of Japan, china, US, Germany and Taiwan are also driven by the SME sector.
Finance/credit is the most critical component in any business process. Any industrial sector cannot work to its full capacity without adequate flow of funds. The SME sector is working with low capacity utilization, which, however, has now improved from 33.34% to around 52% percent. Still these remain a vast scope for enhancing growth and employment generation.
SME’s occupy a place of strategic importance in the Indian economy. however since the early 1990s, Indian SMEs have been exposed to intense competition due to the accelerated process of globalization. Therefore, the survival as well as growth of SMEs is under strain. However, globalization has also brought, in its wake, newer opportunities for SME’s.
SMALL AND MEDIUM ENTERPRISE
There is no universal definition of SME (small and medium enterprise) different countries follow different definition for the SME sector. Some use the criteria of turnover; some use the number of employees whereas in certain countries, investment in the enterprise is used to define an SME.
In India, the definition of SME’s has always been based on the productive plant and machinery. Currently, a unit having gross investment in productive plant and machinery of up to Rs. 1 crore is classified as an SME enterprise. In certain sector such as drugs and pharmaceuticals, hosiery, stationary, hand tools, etc, this limit has been raised to Rs. 5 crore in the past few years. This move has given a fillip to the potential for growth in this sector.
SMES HAVE CERTAIN
Small and medium enterprise(SME’s) in India have a very important place in the Indian economy. Their contribution in terms of production, export, export, employment generation and all round growth of the country is well known. The role of SME sector in the nation building is well recognized not only in India, but also across the globe. The industrial engines of Japan, china, US, Germany and Taiwan are also driven by the SME sector.
Finance/credit is the most critical component in any business process. Any industrial sector cannot work to its full capacity without adequate flow of funds. The SME sector is working with low capacity utilization, which, however, has now improved from 33.34% to around 52% percent. Still these remain a vast scope for enhancing growth and employment generation.
SME’s occupy a place of strategic importance in the Indian economy. however since the early 1990s, Indian SMEs have been exposed to intense competition due to the accelerated process of globalization. Therefore, the survival as well as growth of SMEs is under strain. However, globalization has also brought, in its wake, newer opportunities for SME’s.
SMALL AND MEDIUM ENTERPRISE
There is no universal definition of SME (small and medium enterprise) different countries follow different definition for the SME sector. Some use the criteria of turnover; some use the number of employees whereas in certain countries, investment in the enterprise is used to define an SME.
In India, the definition of SME’s has always been based on the productive plant and machinery. Currently, a unit having gross investment in productive plant and machinery of up to Rs. 1 crore is classified as an SME enterprise. In certain sector such as drugs and pharmaceuticals, hosiery, stationary, hand tools, etc, this limit has been raised to Rs. 5 crore in the past few years. This move has given a fillip to the potential for growth in this sector.
SMES HAVE CERTAIN