SME's – The Middle of the Pyramid: A study and proposals on SME sector of India

Essay by manuthomasUniversity, Master'sA, November 2007

download word file, 6 pages 5.0

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:•Poor financial situation and low level of R&D•Poor adaptability to changing trade trends•Desire to avoid risk•Non-availability of technically trained human resources•Emphasis on production and not on production cost•Lack o management skills•Lack of access to technological information and consultancy services•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:•Formulation of appropriate national policies and programs•Building up technological capacity•Knowledge flows and technology databases•R&D and inter firm linkageKey Issues•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.

•There is a lack of suitable financial schemes with ample public-private participation aiming at a holistic development of the SME sector.

•Many of the industrial...