Strategies for Smes in India
Strategies for SMEs in India
BY
Madhuchhanda Karmakar
Department of Human Resource Management
Army Institute Of Management,Kolkata
Judges Court Road
Opposite Alipore Telephone Exchange
Kolkata-700027
India e-mail: mkarmakar4@gmail.com
Introduction:
In the post liberalization and opening up of the economy business era, ease in international trade barriers, economic liberalization, globalization, privatization, disinvestments and deregulation have thrown several challenges to Small and Medium-Sized Enterprises (SMEs) in the fast developing economies like India.
Compressed product development cycles, cut throat domestic and global competition, economic downturns, rapidly changing customer demands and volatile financial markets have all increased the pressure on SMEs to come up with effective and competitive capabilities to survive and succeed. Enterprise Resource Planning(ERP) is often considered as one of the solutions for their survival. (Rao, 2000).Up to mid-1990s, SMEs sector in India had operated under a much-protected economic regime characterized by limited competition and a highly regulated business environment. This business atmosphere had resulted in limited focus on process efficiencies, centralized control structures, highly formalized business settings and lack of professional business practices (Ranganathan and Kannabiran,2004). However, following the economic liberalization and opening up of the economy to foreign Multi- National Companies (MNCs), Indian SMEs have been forced to adopt modern business practices and strategies, which in turn can provide SMEs a cutting edge over its competitors.
SME stands for small and medium enterprises. This has become a globally accepted acronym for discussion on issues relating to this sector. Small and medium-scale enterprises (SMEs) have come to play a predominant role in the domestic economies of most countries around the world. This is the case in terms of their relative number
BY
Madhuchhanda Karmakar
Department of Human Resource Management
Army Institute Of Management,Kolkata
Judges Court Road
Opposite Alipore Telephone Exchange
Kolkata-700027
India e-mail: mkarmakar4@gmail.com
Introduction:
In the post liberalization and opening up of the economy business era, ease in international trade barriers, economic liberalization, globalization, privatization, disinvestments and deregulation have thrown several challenges to Small and Medium-Sized Enterprises (SMEs) in the fast developing economies like India.
Compressed product development cycles, cut throat domestic and global competition, economic downturns, rapidly changing customer demands and volatile financial markets have all increased the pressure on SMEs to come up with effective and competitive capabilities to survive and succeed. Enterprise Resource Planning(ERP) is often considered as one of the solutions for their survival. (Rao, 2000).Up to mid-1990s, SMEs sector in India had operated under a much-protected economic regime characterized by limited competition and a highly regulated business environment. This business atmosphere had resulted in limited focus on process efficiencies, centralized control structures, highly formalized business settings and lack of professional business practices (Ranganathan and Kannabiran,2004). However, following the economic liberalization and opening up of the economy to foreign Multi- National Companies (MNCs), Indian SMEs have been forced to adopt modern business practices and strategies, which in turn can provide SMEs a cutting edge over its competitors.
SME stands for small and medium enterprises. This has become a globally accepted acronym for discussion on issues relating to this sector. Small and medium-scale enterprises (SMEs) have come to play a predominant role in the domestic economies of most countries around the world. This is the case in terms of their relative number
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