Presentation on

Small and Medium Enterprises

Presented By
Sandesh P Sagar K Sapna D Sapna P Santosh V

Small and Medium Enterprises

At present, a small scale industrial unit is an undertaking in which investment in plant and machinery, does not exceed Rs.1 crore, except in respect of certain specified items under hosiery, hand tools, drugs and pharmaceuticals, stationery items and sports goods, where this investment limit has been enhanced to Rs. 5 crore

SME in India
 With the advent of planned economy from 1951 and the subsequent industrial policy followed by Government of India, both planners and Government earmarked a special role for small-scale industries and medium scale industries in the Indian economy.

Due protection was accorded to both sectors, and particularly for small

scale industries from 1951 to 1991, till the nation adopted a policy of liberalization and globalization.

Certain products were reserved for small-scale units for a long time,

though this products is decreasing due to change in industrial policies and climate.

SME in Maharashtra
The study that was undertaken by contacting 23 small and medium scale industries from Maharashtra. These units covered following sectors:

ELECTRICAL ENGINEERING FOOD PROCESSING PHARMACEUTICAL CHEMICALS

There was proper coverage of all regions of Maharashtra, except Vidarbha Region, which has two industrial centers namely, Nagpur and Amravati. These two centers did not have adequate

representations of all sectors as earmarked for the study.

Objective and Scope:

y 1. To find out the current status Of MSME sector in

India
y 2. Find out the status of MSME in Nagpur City.

Research Methodology Adopted

Research Design: Descriptive Research Research Method: Simple Random Sampling Population : MSME in Nagpur Internet Cafe Xerox Center Sampling Size: 10 Internet Cafe 10 Xerox Center

DATA COLLECTION
Once the problem is realized and work related with research design has been checked out the task of data collection starts. Primary Data Secondary Data

How many machines do you have?

From the collected data we have found that there are 65% of Xerox centers use 1 to 3 machines, 30% uses 4 to 6 machines and only 5% uses more than 6 machines. But in case of Net caf scenario is change. 6% of net cafes uses 1 to 3 computers, 18% of net cafes uses 4 to 6 computers, 25% of net cafes uses 7 to 9 computers, 40% are uses 10 to 12 computers and only 10% uses more than 12 computers.

What is your monthly turnover?

60%

50%

40%

30%

XEROX CENTER NET CAF

20%

10%

0% Be low 25000 25000 -50000 50000 -75000 A bove 75000

45% of Xerox centers and 18% of Net caf have monthly turnover of below Rs. 25000 and there are 37% of Xerox centers and 52% of Net caf having turnover of Rs. 25000 to Rs. 50000. Whereas 14% of Xerox centers and 22% of Net caf have turnover of Rs. 50000 to Rs 75000. And it is found that only 4% of Xerox centers and 8% of Net caf have turnover of more than Rs. 75000.

What is your initial capital?

There are 30% Xerox centers and 12% of

Net caf invest below than Rs 1 lakh to start their

business, 44% of Xerox centers and 25% of Net caf invest capital of Rs 1 lakh to 2 lakh, 18% of Xerox centers and 40 % of Net caf invest 2 lakh to 3 lakh and 8% of Xerox centers and 23% of Net caf invest more than Rs 3 lakh.

Did you avail any bank facility?

From the survey it is found that 30% Xerox centers and Net caf avail loan facilities from the Bank.

Conclusions
y Due to slow & long process of okaying loans in the Public Sector

Undertaking Banks, the SMEs avail loans from private lenders.

y It is estimated that SMEs account for almost 90% of industrial units in

India and 40% of value addition in the manufacturing sector. The SMEs in India need a big push from the government so that it can compete with the increasing Chinese dominance in SME market all over the world.
y Government facilities and schemes encourage people to enter into

SME sector. This is only on paper but the actual situation is somewhat different which is having negative effect on SME growth.

Cont
y Awareness level of the SMEs regarding various schemes of

government also needs to be increased. There should be regular programs conducted for this purpose.
y SME forums, trade associations should raise their concerns related to

problems faced by SMEs.

y SMEs form the backbone of the Indian manufacturing sector and have

become engine of economic growth in India. But, the support of government is still found lacking inspite of government promises, schemes, plans.

Suggestion
y Loan allotment process to SME sector should be faster.

y Policies relating to economy should be taken keeping into mind the

SME sector.

y For better governance a separate regulator has to be established, so that

SMEs can get proper attention of the government or bodies like FICCI & NASSCOM should have independently/autonomous department, so that SMEs get due attention.

Cont
y Successful strategies adopted by foreign countries for promotion of

SMEs sector can be adopted & implemented according to the Indian Scenario.

y The regulator mention above should insure that government facilities

& schemes for encouragement of SME sector are being implemented on ground.

y Platform for entrepreneurial education should be organize on regular

basis.