Small and Medium Enterprise - 12633 Words

INTODUCTION Small and medium enterprise(SME’s) in India have a very important place in the Indian economy. Their contribution in terms of production, export, export, employment generation and all round growth of the country is well known. The role of SME sector in the nation building is well recognized not only in India, but also across the globe. The industrial engines of Japan, china, US, Germany and Taiwan are also driven by the SME sector. Finance/credit is the most critical component in any business process. Any industrial sector cannot work to its full capacity without adequate flow of funds. The SME sector is working with low capacity utilization, which, however, has now improved from 33.34% to around 52% percent. Still these†¦show more content†¦Nevertheless, the spread of SMEs is a fact, which enhances their attraction from a national or regional policy. SIGNIFICANCE OF SMEs SMEs are considered the engine of economic growth in both developed and developing countries, as they: †¢ Provide low cost employment since the unit cost of persons employed is lower for SMEs than for large-size units. †¢ Assist in regional and local development since SMEs accelerate rural industrialization by linking it with the more organized urban sector. †¢ Help achieve fair and equitable distribution of wealth by regional dispersion of economic activities. †¢ Contribute significantly to export revenues because of the low-cost labour intensive nature of its products. †¢ Have a positive effect on the trade balance since SMEs generally use indigenous raw materials. †¢ Assist in fostering a self-help and entrepreneurial culture by bringing together skills and capital through various lending and skill enhancement schemes. †¢ Impart the resilience to withstand economic upheavals and maintain a reasonable growth rate since being indigenous is the key to sustainability and self-sufficiency. IMPORTANCE OF SMEs IN VARIOUS ECONOMIES OF WORLD Small and medium enterprise has always the engine of growth for every country, in developing as well as in transition economies. Their role inShow MoreRelatedSmall and Medium Enterprises2726 Words   |  11 PagesINTRODUCTION SME Definition Presently, there is no common definition of small and medium enterprises (SME) in Malaysia. Different Agencies define SME based on their own criteria, usually bench-marking against annual sales turnover, number of full-time employees or shareholders’ funds. In addition, present definitions focus mainly on SMEs in the manufacturing sector. The establishment and adoption of standard definitions for SME will facilitate better identification of SME across sectors, thus enablingRead MoreNotes On Small And Medium Enterprises1116 Words   |  5 Pages9.Focus on Small and Medium Enterprises Although SMEs play an important role in the economy of the country (generally speaking, SMEs constitute over 90% of enterprises in the world and at the same time constitute between 50 and 60 percent of the work force), most of the information, tools, context and motivations for responsible business activities tend to apply to large companies. Small and medium enterprises are often overlooked in the discussion and establishment of policies, which leads to aRead MoreSmall and Medium Enterprise in Bangladesh1989 Words   |  8 PagesThe Small and Medium Enterprises worldwide are recognized as engines of economic growth. The commonly perceived merits often emphasized for their promotion especially in the developing countries like Bangladesh include their relatively high labor intensity, dependence on indigenous skills and technology, contributions to entrepreneurship development and innovativeness and growth of industrial linkages. Out of 11% employment of the civilian labor force provi ded by the manufacturing sector, about twoRead MoreImportance Of Small And Medium Enterprises Essay1442 Words   |  6 Pagesour life be it economical, social, professional or even if personal. Because IT offers innumerous number of benefits, it is very important to adapt IT in every fields specially Small and Medium Business(SMB). Small Business and mid-size business plays vital role in the progress of country. These small and Medium Enterprises (SME) gives significant contribution to economical growth and sound support for country s economy. And IT specially Internet is having high impact on an organization to performRead MoreSmall And Medium Sized Enterprises Essay1011 Words   |  5 PagesMany small and medium sized enterprises are involved with the manufacturing industry. They take a significant and crucial part in the growth of GDP by offering work opportunities, which help to release employment pressure. A large number of the SMEs are experiencing from the deficiency of IT related capabilities, i.e. development, operating management, research and coordination of the industrial chain. And on the other hand, most traditional IT organizations tend to be reactively in IT design, builtRead MoreSmall And Medium Enterprise Corporation3141 Words   |  13 PagesINTRODUCTION The Small and Medium Enterprise Corporation Malaysia (SME Corp. Malaysia) was formerly known as Small and Medium Industries Development Corporation (SMIDEC). It is an agency under the Ministry of International Trade and Industry (MITI). A business will be deemed as an SME if it meets either one of the two specified qualifying criteria, namely sales turnover or full-time employees, whichever is lower. Details of the new definition are as follows: 2.1 Definition by Size of Operation MicroenterprisesRead MoreSmall And Medium Enterprises ( Smes )1423 Words   |  6 PagesIntroduction Small and medium enterprises (SMEs) normally share the characteristic of limited scale in their operations, and they play significant important role in economic development in many countries around the world (Kotelnikov, 2007). Although SMEs contribute lots of stimulus to the national economy, they commonly suffer from a lack of nationwide geographical presence and an inability of provide their services 24 hours a day and 7 days a week. The implementation of e-commerce eliminate theseRead MoreSmall and Medium Sized Enterprises580 Words   |  2 PagesChapter tow Literature review In most western economics Small and medium – sized enterprise (SME) development is considered as a key to economic growth, innovations and market competition (Acs and Audretch, 1990). In transition countries, the contribution of SMEs is important for the sustaining ideology of the free market, generate income, innovation and creating jobs (Johnson and Loveman, 1995). So far, most of the transition countries still suffer from high unemployment rates even after beingRead MoreSmall And Medium Sized Enterprises2006 Words   |  9 Pagessocial-networking data that is now being produced. While it may be easier for large enterprises to adopt the use of Big Data it is unclear if many small and medium sized enterprises are firstly aware of Big Data and its uses and secondly whether it will actually be beneficial to the business. The project will look at the use, or lack thereof, of Big Data in SMEs and provide a comparison when looking at larger enterprises. 2. An analysis of Big Data i. The Three Vs So what exactly is Big Data? This canRead MoreThe Small And Medium Scale Enterprises2024 Words   |  9 Pages1.1 Background of the study The small and medium scale enterprises (SMEs) in developing countries such as Ghana have been playing very strategic role in the developmental agenda of the nations in the areas of rapid industrialization and other developmental goals as well as job creation among the youth. The interest in the role of SMEs in the development process continues to be in the forefront of policy debates in most countries. Citing Abor and Quartey (2010), Nyameet al (2013) revealed that SMEs