LankaSyndicate

Description

Small and Medium Enterprises, popularly known as SMEs, are the backbone of any economy and considered important as they represent more than a majority of total enterprises of the economy and in India for instance nearly 95% of the enterprises. Therefore this sector represents majority of the industrial units of an economy and a strong and vibrant SME sector will undoubtedly augment the economic growth. SMEs are very vital in creating employment especially in rural areas due to its dispersed nature throughout the country when compared to large enterprises which are mainly concentrated in urban areas. Even though we have identified the importance of this sector, national level programmes to develop SMEs are far behind that of our economic contenders like India. There is lot to learn success stories South Korea, Malaysia and Taiwan. Without going that far the best model to replicate is the Indian one due its vigour and commitment .Indians were successful in establishing the World Association for Small and Medium Enterprises(WASME) on their soil and this is a great achievement since such organisations are traditionally based in developed countries. The SME development strategy of India is an export oriented with the aim of capturing the global markets in exports. They have set up 350 clusters of different industries like handicrafts etc., with a view to provide support to each sector. The other advantage of formation of clusters is that it will represent a strong apex body for each sector to explore global market opportunities in addition to being a powerful voice in demanding protection from the government. We need to formulate sound and competitive SME strategies while encompassing and incorporating public and private sectors with a focused and coherent approach. We need to revisit and redefine our implementation mechanism which traditionally has relegated our capabilities as a nation in the eyes of the world. Novel concepts like incubators and Science Parks should be embrace and such units should be set up through out the country while stimulating start-ups as a part of business birth rate strategies. Micro finance and access to credit for SMEs should be more pragmatic than prevailing systems. Export oriented SME development strategies should incorporate the enhancement of quality and productivity level of enterprises as a competitive tool. The support and guidance of large enterprises should be solicited and encouraged in obtaining sub contracts for SMEs in addition to exploiting the opportunity of learning from their experiences. We should not forget the fact that most of the large enterprises today were small and medium enterprises yesterday.

Products & services

Similar companies nearby