SME's - The Middle of the PyramidCaseSmall and Medium Scale Enterprises are moving out of the traditional ways of doing business, and looking at new avenues In this context, SME financing takes on a whole new paradigm.
IntroductionReasons and Suggestions on the problems faced by SME sector in IndiaKey IssuesIdentifying the elements that are "developments or events that have the potential to influence the organization's current or future strategy".
Alternate StrategiesIdentifying and evaluating the "action alternatives" available to Government in order to address the issues.
Proposed ModelProposal of the best combination of alternatives given the available information and resources.
ConclusionThe proposed model help SSI sector to better manage their resources as well as helps in establishing a sustainable environment by implementing.
ReferencesReference materialsIntroductionThe problem faced by the Indian SME sector is a widely discussed topic. Of the various reasons the most important observations are:Ã¢ÂÂ¢Poor financial situation and low level of R&DÃ¢ÂÂ¢Poor adaptability to changing trade trendsÃ¢ÂÂ¢Desire to avoid riskÃ¢ÂÂ¢Non-availability of technically trained human resourcesÃ¢ÂÂ¢Emphasis on production and not on production costÃ¢ÂÂ¢Lack o management skillsÃ¢ÂÂ¢Lack of access to technological information and consultancy servicesÃ¢ÂÂ¢Isolation form technological hubsTo enable SMEs to mitigate the above problems and enhance their access to new technologies for increasing their competitiveness in the international market, it is imperative to give then a conductive environment which includes:Ã¢ÂÂ¢Formulation of appropriate national policies and programsÃ¢ÂÂ¢Building up technological capacityÃ¢ÂÂ¢Knowledge flows and technology databasesÃ¢ÂÂ¢R&D and inter firm linkageKey IssuesÃ¢ÂÂ¢India in the post-liberalization era is fast emerging in terms of economy and technology and SME industries are finding it real hard to cope up with the pace mainly due to its small size and lack of coordination.
Ã¢ÂÂ¢There is a lack of suitable financial schemes with ample public-private participation aiming at a holistic development of the SME sector.
Ã¢ÂÂ¢Many of the industrial...