Background

Against the overall slowdown in GDp growth rates, the po_tenfial business case with the MSME sector remains mixed.

Despite all these worries, top_notch development practitio_ners and experts around the world caution that the SMEsneed to be handled carefully at this juncture. They say, whenthe economy is going bad toworse, the hope still lies with theSMEs: for these enterprises, theresilience, the potential speedof adjustment, and tfrerefore, ofrecovery is much grcater thanfor the large businesses. Thisis the stong business case forgovernments and banks to workclosely with the MSMEs and toengage them continuously. Of_course it is a painstaking effortas welllBut one need to thinkout of the box.

MSMEs cater to the vital needsof the economy in terms_of therr two specific roles: 1). as asupport base for large industry; and,2) as a stand_ alone pro_vider of goods and services (the .wa!e goods, role). As theeconomy slows down, the sub sector which is highly depen_dent on the corporate sector, is seriously impacted adverseOn the other hand, the stand_ alone sub ictor is affect

*

by the general macro economic factors, than by a slowdownin the corporate sector.The negative impact of an economic

slowdown on MSMEs need to be specifically understood.

The above variation in the speed of adjustment of the twosub sectors, on the one hand, and the differences in such

speed between the corporate sector and MSMEs on the oth-er, have important implications for corporate planning and

for shaping lending policies by the financial institutions. Therisk perception of financial institutions relating to the MSMEportfolio remain generally high, and more so, during times ofa slowdown. But, when the economy recovers, the positive

response to such recovery is likely to be at a much greater

speed in the MSMEs than in the corporate sector. Therefore,

it is in the interest of financial institutions to closely monitor

developments in the MSMEs on a day- to -day basis, and beproactive in measures that help to energize them.

Despite the above imperatives, banks in India are not ad-

equately equipped to spotlight on this vital sector. While de-

velopment banking has given way to pure retail banking,a knowledge gap has virtually taken shape during the past

two decades. This is the right time for banks to do a properhomework for reducing their non-performing assets(NPAs).This is also the time to grab the new opporhrnities with the

MSMEs, as GDP growth rate is expected to pick up by mid2013-t4.

A serious search for tapping the potential of MSMEs shouldbegin with visibility-enhanclng strategies. Such homeworkneeds to have two components: a) morale boosting; b) aclear direction on do's and dont's. This should not happen

in a top-down manner, but through a participative process.

India MSME Communication Programme(IMCP), at the In-stitute of Small Enterprises and Development, is a regularprogramme that facilitates such a home work. ISED SmallEnterprise' Observatory GSED-SEO), the unique platformand its annual reporting series, India MSME Report Series

(MSMER Series), attempt to bridge the above critical gap.

IMCP, as an integrated communication prograrnme, seeks tooffer an integrated solution to the MSME issues. This flag-ship programme ofthe Institute seeks to answerthe questions

as to how and why the MSMEs are, the way they are today.

It seeks to put forward some intelligent integrated solutionsthat touch upon many of the hitherto unexplored areas ofactiviry by MSMEs and their various stake holders. These

answers help the stake holders, like the MSME associations

and business chambers, govemments, bankers, promotionalagencies etc., and thus, offers them a common ground ofjoining together for collective action. The role of ISEp isone of a facilitator in this process of 'communication'.

MSMEs are the lowest form of enterprise in any econo-

my. They are numerous in numbers, but being atomic innature, have only limited bargaining power, both in the

market and in the policy space. While 'cluster'-basedstrategies may help them through pollective efficiency,SMEs are still subject to the more serious problem ofmacro level invisibility. An overall improvement in vis-ibility, and hence, positive changes in bargaining power

corresponding to their rcile in the economy, demands

effective communication strategies. Unlike the popularmeaning.of the term, communication, in the domain ofMSMEs, is about getting information out to particular

audiences, listening to their feedback, and respondingappropriately. The idea is to build consensus throughraising public understanding and generating well-in-formed dialogue among the various stake holders.

a

OUt ISED . SEO

IMCP is a prograrnme being implemented by the ISED Small

Enterprise Observatory GSED-SEO), a premier world-class

knowledge platform on industry and enterprise develop-

ment. Part of ISED, it is Membership- driven. Should you be

an entrepreneur, a banker, a corporate executive, an academ-

ic, it eases you from the burden of pondering over complex

MSME related issues. The benefits for members are varied:

the take-aways are in the form of word of mouth, materials

in print, and other services. Apart from regular communica-

tions, the members also enjoy discounts on selected take-

aways. For membership and further details, please contact

the Co-ordinator: e-mail: ised.seo@gmail.com or seo@

isedonline.org

d ExamplesThe global story of growth in GDP and employment, over

the last one decade, has led to a consensus on the role ofSMEs in the economy. It is now well recognised that, from

the point of view of economic security, SMEs need to be

empowered. Empowerment of SMEs means making them

part of a larger platform of communication, which enables

other stake holders to understand their problems and con-

cerns. Hence the scope of the term, 'communication'coversthe following: 1) the entrepreneurs' interest in SMEs as a

means of livelihood; 2) r}re community's interest in this sec-

tor as a means of local economic developmen! 3) the busi-

ness case identified by various stake holders, such as bank-

ers, suppliers and parent companies; and 4) the role of the

government as a key actor in the macro economy. However,

such interest -driven stake holders need to have a clear view

of the SMEs, their ecosystem, and the opportunities and

threats. This critical gap of invisibility'need to be properly

addressed for meaningful engagement of the MSMEs sec-

tor. While MSMEs, by nature, are structurally invisible, the

primary task before every stakeholder is to help make them

more visible. Some forms of visibility- enhancing strate-

gies have been practiced in the context ofEuropean Union

and North America.In the USA, the role has been actively

pursued by the U,S. Small Business Administration, which

makes regular official reporting on the sector, which forms

the backbone of public policy in that country. The European

Union, as a continent, has a common reporting strategy ap-

plicable to all countries of that region.

SME visibility leads to the overall empowerment of these en-

terprises. The example ofEuropeanUnion stands out. Europe

is just 3.1 times as big as India, but most of the nation states

in the EU are smaller than Kerala. European Union, as a con-

tinent , ensures the critical mass of visibility through its ded-

icated support systems forthe SMEs. These support systems

enable the SMEs from the member countries to vigorously

engage in foreign markets(eg : European SMEs in China).

Another positive impact of the EU strategy is the strength-

ening of SME Associations. The European Association ofCraft,Small and Medium-sized Enterprises(JBAPME) is a

powerful employers'umbrella organisation, with 80 mem-

bers from 34 countries, and representing 12 million enter-

prises. It initiates powerful campaigns from time to time, indefence of the interests of the SMEs. The UEAPME itselfhas solid tools and techniques of scientific advocacy, like

the'EU Craft and SME Batometer', and the 'SME Business

Climate Index'

The ISBD Small Enterprise Observatory over the years, has

created a significant knowledge base of the MSME scene

within India and across the globe.This knowledge capital is

being offered offered by the Institute in a socially meaning-

ful programme, the IMCP.

K uestionsIndia MSME Communica-tion Programme(IMCP)seeks to find answers to the

following questions, fromtime to time:

. |'I/hat is the carrentstatus and problems ofMSMEs in India?

MSME problems cannot

be separated easily fromthe overall problems of

'Research for SMEs' and'Research for SME Associa-

tions' are two dedicated initiatives meant for strength-

ening the innovation capacities of SMEs by providingthe support they need to outsource research critical to

their core business.The Research for SME Associations

Programme of the European Union aims at developing

technical solutions to problems common to a large num-

ber of SMEs in specific industrial sectors(eg; quality

standards, regulatory requirements etc.).The Research'

for SMEs Programme supports small groups of innova-

tive SMEs in solving technological problems and acquir-

ing technological know-how. These two Programmes,

together, ensure a reasonable knowledge base for the

common benefit of SMEs in Europe.

the-Indian economy and society. But for the government, departments and financial institutions, just an abstractunderstanding of the problem is not enough. Action _ori_ented understanding and approaches are vital. IMCp hassuch an action oriented approach and methodology.

. llthat is likely to happen in this sector during the nexttwelve months, and beyond?

Action-oriented understanding alone will help one to planfor the next one year and beyond.That is why the report_ing exercise of IMCP has a periodicity of one year, evenwhile itpresents long termperspectives and strategies.

. What needs to be the strategt for the way forward?Strategies need to be specific and concrete. They need tobe based on facts and figures that are upto date. In orderto ensure this , the IMCP employs a hybrid methodologyinvolving three components:

l) Data drawn from the ISED-SEO, which has the latestavailable data sources on the sector;

2) Field feedback, pre-project, on-project and post-project,including data from purposive suryeys, which supple_ments the above data;

3) On-project and post-project documentation of all knowl_edge resources through the IMCp National Report.

. Specification of Stake holder roles

What role can the various stakeholders, viz., the govern_ment, banks, industry associations and civil society playin shaping such a strategy on the basis of common goalsand shared values?A clarity on this is needed in order toensure ACTION. This need to be done professionally byan external agency in an independent and unbiased man_ner. ISED considers this as its responsibility to the societyin which it operates.

O ectivest Ultimate Objective

More effective, responsive and accountable governance ofthe MSME constituency with civil society participation.

t IntermediateObjectives

Creation of a strong knowledge base to engage in participa_tory govemance relating to the MSME constituency.

Increased collaboration and learning between civil societyorganisations and institutions in governance.

o Short-term Outcomes

Dialogue: Strengthened ability of civil society networks/ al_liances to engage in dialogue on participatory governance.

Replication: Enhanced ability of civil society networksi al_liances to identifu and replicate good practices on participa_tory govemance.

Increased interaction between civil societyces and institutions in govemance.

Learning: Greater understanding of and competence in par_ticipatory govemance among civil society and other stake_holders including the wider public.

Wishful thinking, rash generalizations, and sernons from thepulpit will not help. Beyond broad macro- economic judge_ments, our understanding of the MSME sector needs to beevidence- based and methodologically sound. It should en_sure knowledge creation,andflow of information and knowl_

:ff'1Til:munication.

Knowledge Build -upand ReportingISED Small EnterpriseObservatory(ISED-SEO), isa unique Knowledge Bankon the MSME sector. It is arepository of varied knowl-edge resources, includingrare data and info materialsthatare drawn, among otherthings, through the regularProgramme of the ISED.These knowledge resourcesare useful to the MSMEstake holders in their resu-

MSMEs in India are largely unaware of many publicpolicies, even if they beneflt from them. While aware_

have enough funds under their MSME programmes; buttakers are often few in number. Banks are on the look

cts, but it.ous circl re-can be, est

means of visible action and impacts. Many countries ofNorth America andEurope provide good models in thisaspect. !

lar work. The Observatoryis an independent mem-bership platform. Themembers include, MSMEentrepreneurs and their As_sociations, business cham-bers, financial institutions,researchers, NGOs etc. .

'India: Micro, Small andMedium Enterprises Re-port (MSMER) is a serieswhich was introduced asa unique initiative in thecountry bythe ISED Small

o Partnership under Event partnership Options.e Partnership underAdvertisement Options.e Bulk purchase of MSMER and allied Reports for dis_

tribution/dissemination within one,s organization oroutside.

r LogisticaVtechnical support for events under .IndiaMSME Darshan' in selected cities/centres of one,spreference.

' Inputs/data support for preparation of the .India,MSME Report'.

e Membership in the ISED Small Enterprise Observa_tory.

c Donations for IMCp Fund

Since the first issu ob

subsequent volum tllthe subject area,gl Sericome of age. It is widely quoted and reviewed in premieracademic and media circles, such as Economic and politicalWeekly, ess Review, Business Indiq, BusinessWorlL Times, Financial Express, the Hindu,the Bus

specific interests and concems. Thus, the programme, whichoriginally started as a single level reportinglndeavour has

CommunicationISED is keen that the knowledge_ base, created by the report_ing initiative of the Observatory should be beneficial to thestake holders, and to the society in general. This vision oftheInstitute is translated

now got matured into a three-tier reporting programmecovering Global, National.and State level scenarios.

The India MSME ReportSeries has generated sig-nificant interest among theState Govemments as well.The Government of Guja-rat sought the expertise ofthe Institute to prepare In-dia's first State level Reporton MSMEs, the 'Gujarat'Micro Small and MediumEnterprise Report 2013.

into action throughthe 'India MSMEDarshan', an out-reach and communi-cation programme,wherein the MSMEReport is used as animportant tool. Thiscrucial phase of theProject realizes thisobjective throughdeliberations acrossthe countr;r, cover-ng 20 centers, 16

The Report, prepared with the active participation of vari_ous stake holders in the State, was formally released by theChief Minister at the .Vibrant Gujarat Z0l3'. Various otherState Governments have approached the Institute to under_take studies on similar lines.

f,

Tamil Nadu

Kerala

Kamatak4

Maharashha

Madhya Pradesh

Rajastan

Gujarat

Jammu & Kashmir

Uttaranchal

Chhattisgarh

Bihar

Orissa

Andhra Pradesh

West Bengal

Assam

Tripura

Meghalaya

Jharkhand

Himachal Pradesh

Chennai, Coimbatore, Madurai

Trivandrum, Cochin, Calicut

Bangalore, Mangalore,Mysore, Kolar.

Pune, Mumbai, Sholapur,

AhmedNagar

Indore, Bhopal

Jaipur, Udaipur, Jodhpur

Ahmedabad, Surat, Vadodra, Rajkot

Srinagar

Dehradun

Raipur

Patna

Bhubaneswar

Hyderabad, Vishakhapatnam

Kolkata

Guwahati

Agarthala

Shillong

Ranchi

Shimla

bookish understanding, all MSME stakeholders need to have

an understanding of the matrix within which they need towork.

In a matrix, as above, the intelligent decision maker wouldconstantly try to get his actions/proposals supported with astrong business case, and would consciously try to build upa win-win situation. Such an approach is applicable both toindividuals and institutions. Misinformation and partial in-formation are the enemies of informed decision making. In-formed decision making, however, can come only through a

continuous process of dialogue and communication. IMCPdoes this through the following ways: 1) Creation of a mpltistakeholder platform; 2) Issues of debate are prioratised on

the basis of informed understanding of their scope and cov-erage; 3)The debates and areas ofconcern are channelized ina demand-driven mafller; 4) Issues and concerns are pickedup on the basis ofregional concerns and aspirations , ratherthan vagre ,enumeration of ' problem areas". 5) A ground forconciliatory talks between opposing parties are facilitated(The Institute itself mediates where needed); 6) Expert ad-

vice is given on bi-parfy relationships, wherever requested.

For the ISED Small Enterprise Observatory Reporting means

one form of output. The MSME Report has varied purposes.First, it provides an independent and unbiased analysis ofthe state of MSMEs in the particular year Secondly, beingaddressed to a multi stake holder platform, the Report needs

to maintain a balance.Thirdly, since it is meant to trigger adebate on the state of the sector and its imperatives, its styleand language has to be comprehensible to all. Therefore, thereporting exercise takes constant efforts to cross the barri-ers of language and style. The Report is meant for amateursand professionals alike. All the stakeholders, entrepreneurs,

States, and 500,0000 entrepreneurs and other stake-holders.'Darshan'has two major objectives: 1) issue-based regionallevel discussions, organized jointly with the State MSMEDepartments and MSME Associations/ Chambers; 2) pio-ratisation oflocal issues against the background ofState lev-

el and national issues; and 3) evolvingcollective strategies.

Communiation as an inevitable con-

necting link in any transaction be-

tween two parties, is approached fromvarious angles: the banker does it inpersonal banking; the governmentpromotional agency/Department does

it through EDPs or entrepreneur coun-

seling; the NGO does it through microfinance. The real -world experience is

that, in all these transactions, there are

givers and receivers, and the deals are

settled not to the optimum satisfactionof both the parties. What is often lack-ing is a demand-driven deal. Beyond

9u$".o p*blicy makers, analysts,thing to pick up, to be used in the some- semination and Stake holder feed back.

Delivery of the programmeThe process of IMCpprolect; 2) R"pd;* stages: l) Pre

n; and 3) Dis_

. The IMCp provides snapshots of the MSME scenarioal contexts,which giveseconomic environment

their subsistence hnd o"r;ltt turn' also provides for

o The MSMEs and their Associations get updated in_formation on the businer, *d ""ono_]" t "oOr,

uod uglimpse of achievements gained and issues faced bycomparable subsectors.

o As_the IMcp provides commentary on various tradeand non_trade policy and legal issues, u g"o.rut aware_ness of benefits and limitations affectin! th"i. op"ra_tions is obtained.

Policy fnsfitutions

Feedback on Initiatives; Important feedback on the ef_fect and efrcacy of legislative _""r*;;;;;;licy initia_tives is one of the major contributions of MS'MER, as therelevant information is gathered dir*a;;;the rargetpeople and their Associations.

Directions for Change: Threquirements of me rinits in

support

highlighted, lnOicatir[' tne direcrions in which,J:;;::tiation or change is desirable or needed.

Prior Knowledge: Thtives and..rooir"rio initia-

States

]: lt:]ld"^d, highlighting the achievements and issues aris_mg out of measure

repetitive trials and ' thereby avoiding

Financial Institutions

MSME opporhrnities need to ie tapp"j,n "irn

*e markerprocess only; the government prograrnmes bi themselves,cannot ensure that the major vacuum of untapped busi_ness opportunities and linkage potential that still remainsis trained to the best advantage ofa[.Risk Management: The landscape of MSME risk under_goes significant changesrisks, such as reduced-demfinancial issues like brakes isibility, and involved legislation and regulation. White

be managed to some e{ent theme all the more important in the

in its pres ent fonn, is ""r

:f;HH;'""f#:T?:lTT:tinuous scan of customer needs and new markets, whichis vital for ensuring survival and erowth. s".r^_, aar -.-L

MSMEs and Business AssociationsNew Business Opportunities and Linkages: G

3:l?i"1"3tu:l: o" devclopment bd;s io roo,u, o",

Research ; Only theEconomic Research

sues, withmuch less foc is focused on macro level is-

IMCp offers u ,*. "oo.

on the constituency ofMSMEs.

that are not availabre els ,resourcesporrunities ora"rr"toplng, tI1Y-win basis. on a wrn-

of financial in_ Civil Sociefy

ofitic

Performance improvement programme for 12 units

were initiated directly.

Reporting services extended to one State govern-

ment; three others are in progress.

Advisory services to 21 units extended.

Banker- entrepreneur disputes at the local level- 6

cases were taken up with higher authorities and ami-

cably settled.

Nine cases of infrastructure bottlenecks were brought

to the attention of State Governments and resolved

Five new project ideas identified and documented;

thirty entrepreneurs brought into the stream.

Nine critical areas of policy intervention were identi-

fied, brought to the notice of the Ministry of MSME.

Eleven cases of Institutional Development identified,

and advisory services extended.

Advisory services in livelihood development to f.ve

NGOs

Industry responses from five subsectors triggered

major subsectoral studies over the years.

The" Desk to the Field"(India MSME Darshan) stage in-volves the following five broad activities: a)Local partner-

ship initiative; b)Development of programme content based

on local prioriries; c)Resource mobilization; d)Implementa-tion; and e) Dissemination, deliberation and formulation ofapproach to issues and solutions; f) Post project reporting.

The delivery of the Project is structured under its calendar:

The state-of-the Sector Report is brought out in a high pro-

file event in one of the metro cities in June, with the active

involvement of the major stake holder institutions. This is

followed by the formal launch of the India MSME Darshan,

which runs through July to November. The IMCP National

Report covering the major field level feedback and recom-

mendations ,comes out in December. A Policy Brief, brought

out along with the IMCP National Report, is submitted to the

major echelons of policy, the Reserve Bank of India, Plan-

ning Commission, Ministry of Finance, Ministry of MSME,and the Prime Minister's Economic Advisory Council etc.

Similarly, Policy Briefs based on the Global MSME Report

and the Report on India: the State of MSMEs, are circulatedto the relevant stake holders in the same manner.

The Partnership ModelIndia MSME Communication Programme is the world'sfirst communication prograrnme of its kind, being imple-

mented on an'Inclusive Partnership'mode. The term 'inclu-sive'implies that the Parbrers'role in the programme is rated

not simply in terms of their resource contribution, but also

in terms of their commitment to the cause. The Partners are

the pillars of the programme. They help the programme inmobilizing the resources, social capital and logistical support

base, and make it to happen.

The revenue model implicit in the programme involves the

following: 1). Partners' contribution; 2). sale of reports;

and 3). the donor conkibution. The commercials of the pro-grarnme can, therefore, be in the form of physical or finan-cial resources or both.

Given the interest and willingness of a potential Partner,

there are many options to choose from. Partnership can be

in the form ofdonor contribution, technical assistance, facili-tating events, or providing support services.

Overall Benefits to PartnersBesides specific benefits to particular categories ofPartners,there are significant overall benefits to all Partners alike.

The discussions in the Events are of a high quality with sig-

nificant focus, so that all Partners and stake holders benefit.

The events organised in the context ofthe formal release ofMSMER and under the India MSME Darshan, are high pro-file initiatives with active involvement and participation ofleading institutions: Ministry of MSME, Planning Commis-sion, Reserve Bank of India, Public sector and Private sector

banks, State Government departments, IIN, and multilateralagencies. The Partners, depending upon the terms of partner-

ship concerned, get an excellent opportunity to send a se-

lected number of delegates, to participate.

The Programme has been encouraged by the Reserve Bankof India, Ministries of the Union and State Governments and

Intemational organizations. It has also been supported byvarious financial institutions and public promotional agen-

cies. who are its Partners.

The project IMCP was started as a reporting exercise on the

small scale industries sector, inl997. While the data base ofthe Sector those days was rather skeletal, there was a percep-

tion among some of the stakeholders, especially the devel-

opment banks and the government, regarding the need fora solid data base. The original initiative was to collate the

available data into a usable report form. This has undergone

significant changes over time. Reporting itselfbecarhe need-

based.

8 __-______-_______

*

Brings out India's only comprehensive source bookonMSMEs

Continuity over the last seventeen years

Regular.feed back from all States, UTs and MSMEdominant centres ofthe counhy

Coverage of500,000 entrepreneurs and other stakeholders

Regular international comparison of 15 countriesand all continents

Active Parhrership with 200(banks, promotional agencies

partner institutionsand govemments)

across the country.

High-profile fonnal launchspeakers

events and reputed

Excellent media coverage and visibility

Eight thousand print copies distributed across theglobe

Due recognition for all partner institutions

Indepth analysis of issues relating to credit, market-ing and technology, and new business opportuni_ties

Waming and projections on problem areas

Detailed analysis and documentation of clustersand promising product-lines.

Ahigh order of media sensitization.

7)

8)

e)

l0)

ll)

r2)

l3)

r4)

150

16)

r7)

l8)

for problem sectors;

Projection on issues ofpolicy relevance;

Esatablishment of a mediatory role at the field level:

Generation of State-level and industry_ level pro_files;

Synchronisation of the National with the globalMSME scenario;

Identification of MSME financial sourcing issues andproviding guidelines and suggestions(which resultedin the ultimate establishment of the SME Exchange);

Triggering women empowerment issues through,MSMEs(which led to the establishment of a Women,sBank);

Gender-specific issues pertaining to women _domi_nant indushies, such as leather tanning, footwear,ready- made garments, electronic equipments, erc;

Child labour issues in industries like, sports goods,matches, leatheq and other products;

Environmental issues and clean production;

Green production and related business opporhrnities;

MSME outward-orientation and trade issues;

Re-assirnilation and absorption of returning migrantsinto the MSME sector.

The amThe expertise embedded in theIMCPhas got evolved overthe lastsxteen years. It does not merelvreflect the expertise of ISED as aninstitution, but also intelligenceaccumulated over the years. Therich inputs from a large number of

l) Visibility of key MSME issues;

2) Articulatio s of MSMEs from genericto specific to regions and clusiers;

3) Identification of levels of capability of the entrepre_neurs and their enhancement;

4) Identification of potential business opportunities forbanks;

5) Identificition ofnew areas ofintervention by the rel_evant government Departments;

6) Identification ofproblems and suggestion of solutions

MSME& f IMCP,rgsearch. sthave\adirection. the livepressing problems of the people, there has to be a closelink between people in action and.the researcher whotries to understand their actions and concerns. The an_

stake holders across the country and outside, have helped a

synthesis of ideas, and shaping of the IMCP.

The mandate being shaped through a process of continuous

interactions with a stakeholder network, the Programme

has been operationalised through the meticulous work of the

ISED -SEO..

Advisory and Co ordination am

While the Programme is coordinated by the ISED-SEO, the

work ofthe Observatory is overseen by an International Spe-

cial Advisory Team, headed by the eminent economist and

former Union Minister of State for Science and Technology,

Dr. Yoginder K. Alagh. A large number of experts with ex-

tensive and meaningful involvement in the MSME related

fields forms the core advisory panel. Details of the panel

members is given on page 11. The programme is implement-

ed by a dedicated team of subject experts, vide details on

page 13.

SustainabiSustainability is the hallmark of IMCP. The Proj-

ect emerged and meta-

morphosed into its Presentstage of a fully oPerational

Programme. Each Particu-lar stage of its develoP-

ment was of significantappeal to particular stake

holders, and today, it is an

integrated programme re-

sulting in a synergY ofvari-ous stakes for the common

benefit of the constituencY.

From this angle, IMCP stands out as a unique model that has

significant scope for replication in similar contexts'

The sustainability of the Project arises from the following

facts:

1) Being truly participative, the Programme is demand-

driven;

2) The implicit model of inclusive partnership' ensures

the economic sustainability of the Programme;

3) The Programme has a significant potential and demand

for being scaled uP;

4) It has a great demand for horizontal and vertical inte-

gration as well as for disintegration into States and sub-

sectors.

Scaling up and RePlication

IMCP has a need and potential for scaling up and of getting

broad based and replicated. The Programme is getting scaled

up in terms of its coverage. Broad basing has happened in

terms of entering another stage of reporting, ie, State level

reporting, to be followed by district level reporting.

a

a

o

The Economic Crisis and MSMEs: Annual Analysis

Labour shortage in the MSMEs.

Skill Mapping.

MSME HealthAnalysis.

Shared Growth Commission for MSMEs.

'Dependent Enterpreneurship' and Entrepreneurship

Crisis.

Innovative solutions for Delayed Payments problem.

Competition policy for MSMEs.

'Inclusive Entrepreneurship Development' Model.

'Finance Park': a new MSME Finance Model.

Responsible Business Model for MSMEs

Alternatives in Cluster Strategy.

MSME as a regional development model.

Women empowerment in the MSME Sector.

o

o

a

a

a

o

a

International Advisory Team' Mr. Vijay G Kalantri, President, All IndiaAssociation of

Industries, Mumbai

' Dr.S.P.Gupta, former Member, Planning Commission,NewDelhi.

. Mr.Amitabha Guha, Chairman, South Indian Bank

' Dr. Dinesh Awasthi, Director, Entrepreneurship Devel-opment Institute of India (EDID, Ahmedabad

' Prof. Blili Sam, Director, Enterprise Institute , Univer-sity of Neuchdtel ,Switzerland

' Mr. H. P. Kanoria, Chairman, KanoriaGroup of Compa-nies. Kolkota.

' Mr. Lakshman Gugulothu, CEO,BSE SME Exchange,Mumbai

' Dr. T.S. Papola, Member, Prime Minister's AdvisoryCouncil on MSMEs.

' Dr. Malcom Harper, Former Director, Canfield Instituteof Management, Cranfield, U.K.

' Mr.RamVenuprasad,Adviser,EnterpriseDevelopment,Commonwealth S ecretariat, London

' Mr. Gopal Joshi, former Coordinator- Informal Enter-prises, EMP/ENTERPRISES, ILO, Geneva.

' Prof. Gordon Murray, Professor of Management (En-trepreneurship), University of Exeter Business School,UK.

' Padmabhushan Mark Tully, eminent Journalist

' Dr. Paul Shrivastava, Professor and Director,Centre forSustainable Enterprise, John Molson School of Busi-ness, Canada

' IVk Rohit. S. Mehta, President, South Gujarat Chamberof Commerce and Industry, Surat.

' Dr. Soren Jeppensen, Associate Professor, CopenhagenBusiness School.

' Ms.Uma Reddy, CEO, HiTech Magnetics Ltd, Banga-lore

' Ms. Madhura M. Chatrapathy, Director, Asian Centerfor Entrepreneurial Initiatives , Bangalore

' Dr. Rasheed Alleem, Director General, Hamariya FreeZone Authority and Seaports and Customs Authority,Shadah, UAE

' Dr. N.K.Thingalaya, former Chairman, Syndieate Bank

' Ms. Suditta Bhadra, National Project Manager, SCORE,India, ILO, New Delhi.

-_-__--________--- 1l

nal Advisory Team

' Ms. K. Saraswathi, Secretary General, Madras Chamberof Commerce and Industry, Chennai

' Mr. K.P. RamachandranNair, President, The Kerala StateSmall Industries Association

' Mr. R.S. Joshi, Chairman, Federation of Industry & Com-merce of NorthEastem Region, Guwahati

' Dr. Sripama.B. Baruah, Professor, Indian Institute of En-trepreneurship, Guwahati.

' Mr. Anurag Aggarwal, President, Mohali Industries As-sociation, Mohali.

' Mr. B.A. Nazeer, President, Kanara Small Industries As-sociation, Mangalore

' Mr. J. R. Bangera, Past President, Federation of Karna-taka Chambers of Commerce and Industry, Bangalore.

' Sri Ramesh Mohapatra, President, Utkal Chamber ofCommerce & Industry, Bhubaneswar

' MI.A.K. Saboo, President, Malabar Chamber of Com-merce, Calicut.

' Dr. K.L. Jain, Honorary Secretary General, RajasthanChamber of Commerce and Industry

' Fr. P.T. Joseph, Director, Xavier Institute of Management,Bhubaneswar

' Mr. K. Gnanasambandan , Vice President. Tamil NaduSmall and Tiny Industries Association, Chennai

' Mr. Puran Dawar, President, Agra Footwear Manufactur-ers and Exporters Chamber, Agra.

' Mr. Atul Kapasi, President, Gujarat State Small Indus-tries Federation, Ahmedabad.

' Mr. B .L. Baheti, Secretary General, IndianFederation ofTiny Enterprises, Kolkata

' Mr. AKarthikeyan, Project DirecIor,ZDH /SEeUApart-nership Program, Noida

' Mr. Dilip Sharma, Regional Director, PHD Chamber ofCommerce, Chandigarh

' Mr. V S Raju, Past President, Federation of AndhraPradesh Chambers of Commerce & Industry, Hydera-bad.

' Sri. S. Balasubramanyam , Past President, peenya Indus-tries Association, Bangalore

' Dr. G. C. Gopala Pillai, Chairman, KELTRON LimitedThiruvananthapuram

' Mr. K.P.S. Keshri, President, Bihar Industries Associa-tl0n

Mrs. Anjana Chellani. National(Programme), ILO, New Delhi.

N

Professional Offiber

Partner Organisations

All IndiaAssociation of Industries, Mumbai

Andhra Bank

Association of Leather Industries of Kanpur

Automobile Research Association, Pune

Axis Bank

Bank of Baroda

Bank of India

Bank of Maharashtra, Pune

Centre for Entrepreneurship Development, Tamil Nadu

Chandigarh Business School

Coir Board

Canara Bank

Credit Guarantee Trust Fund forMicro and Small Enter-

pnses

Commonwealth Secretariat, Commonwealth Youth Cen-

tre, Chandigarh

Confederation of Southern States Small Industries As-

sociation

Council for Leather Exports

DenaBank

Export- Import Bank of India

Export Credit Guarantee Corporation of India

Entrepreneurship Development Institute of India

Federation of Andhra Pradesh Chambers of Commerce

& lndustry (FAPCCD

Federation of Indian Chambers of Commerce and Lrdus-

try (FICCI)

Federation of Kamataka Chambers of Commerce & In-

dustry (FKCCI)

Federation of Madhya Pradesh Chambers of Commerce

and Industry(FMPCCD

Federation of Indian Export Organisations

Footwear Park Association, Bahadurgarh

Gujarat Chamber of Commerce and Industry

Gujarat Industrial Development Corporation

Hosiery Manufacturers' Association, Ludhiana

IDBI Bank

Indian Bank

Indian Institute of Entrepreneurship, Guwahati

Indian Institute of Management, Kolkata

Indian Professional Service Organization (IPSO), Kol-kata

Industries & Commerce Department, Government

Haryana

Industries & Commerce Department, Government

Maharashtra

Industries & Commerce Department,Government

Punjab

Induskies & Commerce Department,Government ofTamilNadu

Industries & Commerce Department, Government ofAndhra Pradesh

Industries & Commerce Department, Government ofKerala

Industries & Commerce Department, Government ofKarnataka

Industries & Commerce Department, Government ofGujarat

Industries & Comqrerce Department, Government ofUttar Pradesh

Indriskies & Commerce Department, Government ofMadhya Pradesh

Industries & Commerce Department, Government ofWest Bengal

Institute for Inspiration and Self Development (IISD),

Kolkata

Institute of Entrepreneurship Development, Chennai

Kerala Industrial Infraskucture Development Corpora-

tion Ltd.

Kerala State Industrial Development Corporation

Kerala State Small Industries Association

Kanoria Group of Companies, Kolkata

Kerala State Financial Enterprises Ltd.

KarurVysya Bank

Leather Tanners Association, Kanpur

Leather Manufacturers Association, Ambur

Leather Manufcaturers Association, Chennai t

of

of

of

Ma&ya Pradesh LaghuUdyogSangh

Madhya Pradesh Industrial Development Corporation

Madurai District Tiny and Small Scale Industries Asso-ciation (MADITSSIA)

Maharashtra Centre for Entrepreneurship Development

Maratha Chamber of Commerce, Industry and Agricul-ture

Marwar Chamber of Commerce and Industry

Marwar Steel Re-rollers Association

MITCON, Pune

Mohali Small scale Industries Association

MSME Development Institute, Ahmedabad

MSME Developpent Institute,Bhopal

MSME Development Institute, Chennai

MSMEDevelopment Institute,Bangalore

MSME Development Institute, Indore

MSME Development Institute, Kanpur

MSME Development Institute,Ludhiana

MSME Development Institute,Mangalore

MSME Development Institute,Trissur

National Bank forAgriculture and Rural Development

National Institute of Bank Manasement

North Eastern Council

National Institute of Design

PHD Chamber of Commerce

Pune Chamber of Commerce and Industry

Peenya Industries Association, Bangalore

Pimpri- Chinchwad Industries Association

Pimpri- Chinchwad Chamber of Industries, Commerce,Services and Agriculture.

PSG Institute of Management

Punjab & Sind Bank

Punjab National Bank (PNB)

Punjab University of Agriculture, Ludhiana

Punj ab State Induskial Development Corporation

Science & Technology Entrepreneurship Park, Chandi-garh

Siribissi Small Industries Association

Small Industries Development Bank of India

South Indian Bank Ltd.

State Bank of Hyderabad

State Bank of India

State Bank of Travancore

The Federal Bank

Tamil Nadu Small and Tiny Indushies Association(TANSTTA)

Tamil Nadu Small Industries Development CorporationLtd (TANSIDCO)

The Associated Chamber of Commerce and Industry ofIndia (ASSOCHAM)

The Malabar Chamber of Commerce, Calicut

U P State Industrial Development Corporation

United Cycle Manufacturers' Association, Ludhiana

United India Insurance Company Ltd.

ZDH I SEQUAPartnership Program

The Implementation TeamAs a national programme, the task of IMCP has been madepossible by the meticulous work of a dedicated team, at theheadquarters of ISED and in the field. The editorial teamconsist of:

Dr. P.M. Mathew: Development Economist and Editor.

Dr. K.N. Kabra, Economist and Public Policy Specialist.

Dr. J.M.I. Sait : Investment strategist and Management Ex-pert.

Dr. Bimal Arora : Economist and CSR specialist, based atNew Delhi.

Mr. Zulfikar Mark: SME Expert, based at Washington.

Dr. Manoranjan Sharma: Economist, based at Bangalore.

Dr. Antonio Caubi Ribeiro Tupinamb6: Psychologist, basedat Sao Paulo, Brazll.

Dr. Yerram Raju: Financial Expert, based at Hyderabad.

Dr. Koshy : Practicing Economist, based at New Delhi.

Mr. Amit Mitra : Gender Specialist, based at New Delhi.

Dr. Tulus Tambunan : Economist and SME expert, based atJakarta.

Dr. M.K. Sukumaran Nair : Economist based at Botswana.SouthernAfrica.

Dr. A. Selvaraj: Human Resource Specialist, based at Ma-durai. z

aaa

dus"The potential of the MSME constituency is enormous. We need the help of programmes like IMCpfor a meaningful under-standinp of such potential......

-Mr. Lakshman Gugulothu, CEO, BSE SME Exchange.

"The holistic view, with which ISED approaches MSME issues is really commendable. IMCP has great relevance at thenational level and especially to smqller states like Kerala".

-Dr. G.C. Gopala Pillai, former Chairman, EACT Ltd.

"At FKCCI' we are privileged to partner with ISED in their innovative work of communicating the MSME concerns "-Mr. J.R Bairgera, President, Federation of Karnataka Chambers of Commerce and Industry, Bangalore.

"Understanding the MSME sector in its entirety is a complex task Therefore, ISED and its work has great relevance to-doy"

- Mr. Rajanikant r( Marfatia, Member, National Executive committee. Frccr.

rnme"The Ministry's Programme need to be supported by initiatives in communication like this......

- Sri. K.H. Muniappa, Minister of State (Independent Charge) for MSME, Govt. of India.

,,IwishInstituteofSmallEnterprisesandDevelopmentandtheIMCEeverysuccess.''

- Mr. Virbhadra Singh, Former Minister of State (Independent Charge) for MSME, Govt. of India.

" The output of this highly professional exercise has come at an opportune time, the time offinalisation of the Twelfth FiveYear Plan .......- The Ministryfinds India MSME Report and India MSME Darshan extremely useful to the Government andthe public promotional agencies.......... I hope the same withfinancial institutions also".

- Mr. R.trC Mathur, Secretary, Ministry of MSME, Government of India

"It is such innovative experiments like IMCP that really matter in identifiing the problems of MSME development in WestBengal"

-Mr. Manas Ranjan Bhunia, Minister for MSME, Govt of West Bengal.

"The Government of Punjabfinds this initiative of ISED, really laudable. We extend ourfutl cooperation to Indiq MSMECommunication Programme... "

- Mr. S.S. Channy, Principal Secretary (fndustries & Commerce), Government of punjab.

"ISED has been renderingyeoman service to the cause of MSMEs in the country. Congratulations to India MSME ReportSeries and the LMCP......." , ,

- Shri. Murugesh R'udrappa Nirani, Minister for Large and Medium Scale Industries, Government of Karnataka.'ri ---.- - --

Financll Ins ns

"Providing solid data base for the MSME sector is a major challenge today......... The Institute's initiative in this regard is,of course, commendqble

- Dr. K.C. Chakrabarty, Deputy Governor, Reserve Bank of India

"This great work of ISED is laudable ... . .. . .At the Federal Bqnk, we are proud to partner with lMCp ..... "

-Mr.Shyam Srinivasan, CEO, Federal Bank.

....... a unique model of communicating the concerns of Micro, Small and Medium Enterprises"

-Dr. N. K. Thingalaya, Former Chairman, Sydicate Bank.

"Thefinancial institutions badly need the support of programmes like this, in order to shape our lending policies... ..... "

- Mr. M.G. Sanghvi, Chairman, Sydicate Bank & Former Executive Director, Bank of Maharashtra.

"Globalisation is a reality.... but still we live in communities and neighborhoods.... This Programme spealcs of thai...."

- Padmabhushan Mark Tlrlly

With all the emphasis on microfinance and microenterprise (which, I understand, to meqnpely trade, one-person survivalenterp-rises, yital,fol millions of poor people's livelihoods), the 'real' small business with potential to creaiiobs for peopleoutside thefomily, has tended to be neglected.... Hence the mission of this Programme is something great....

- Dr Malcolm Harper, Former Director, Enterprise Development Centre, Cranfield University)

"Awell researched document it is Bqtond that, MSMER does awondeful job of idenffiing the opportunitiesat the bottom of the pyramid the qccellent international analysis offers lessons to other deietopiii countries aswe||.........."

- Dr. Jose Maurel, Director, Commonwealth Secretariat, London

'IMCP is really an innovqtive programme, and lLofinds great relevancefor it today........"

- Mr. Gopal Joshi, co-ordinator, rnformal Enterprises, EMp/Enterprises, rl,o, Geneva

ediaThe uniqueness of the India MSME Report Series is that, it is being brought out by a world-class lmowledge platform, theSmall Enterprise Observatory ......

- Global Business Review

The work of ISED Small Enterprise Observatory is laudable

- The Economic Times

This exclusive lcnowledge platformfor sMEs has several innovative things to offer......

- Global MSME, Kuala Lumpur

Beyond the regtlar reporting by the India MSME Report, the ISED Small Enterprise Observatory is expected to contributemuch more valuable inputs for planning and policy making in the country-..

- The Business Line I

I

I CP Calendar

Event Announcement Launch Event Partnership

time-line

Global MSME RePort

India MSME RePort

India:Report on MSMEs in the States

India MSME Darshan

IMCPNational RePort

January

January

January

March

July

December

June

June

July- November

December

2 months prior to the launch

1 month prior to the launch

I month prior to the launch

2 months prior to the launch

1 month prior to the launch

Note: Partnership terms and condition are separately available'

St alL. -....

'A wonderful contribution... as it comes fromISED.The lucid analysis of the Report provides significantfood forthoughttothe planners.........."- Dr,S.P. Gupto, Former Member, Plan ni n g Com mission

.........a unique model of communicatingthe concerns of Micro, Small and Medium Enterprises"

- Dr. N. K.Thingolaya,F ormer Chairman, Sydicate Ban k.

"lndia MSME Darshan is truly relevant to the context ofoverall development of the North- East.l congratulate lSED

for this innovative experiment......"

-Mr. P.P. Srivastovo, Member, North-Eastern Council.

Governmentof India.

"The financial institutions badly need the support ofprogrammes like this, in order to shape our lendingoolicies........"

-Mr. M.G. Songhvi, Chairman, Sydicate Bank & Former

Executive Director, Bank of Maharashtra.

"The great work of ISED is laudable........At the Federal

Ban(we are proud to partnerwith 1MCP....."

-Mr.Shyom Srinivoson,CEO, Federal Bank.

'A well researched document it is...... does a wonderfuljob of identifying the opportunities at the bottom of thepyramid.....The excellent international analysis offerslessons to other developing countries as well. . . . . .."

(Dr. Jose Mourel, Director, Commonwealth Secretariat,London)

'At FKCCI, we are privileged to partner with ISED in theirinnovative workof communicating the MSME concerns"

-Mr. J.R. Bangera, President, Federation of Karnataka

Chambers of Commerce and Industry, Bangalore.

"l find the Report quite interesting and comprehensive.Above all,the MSEMRSeries has continuity..............andthat makes it a ready reckoner."

- Dr. T.S. Papola, Member, Prime Minister's AdvisoryCouncil on MSMEs, New Delhi

"Providing solid data base for the MSME sector is a majorchallenge today......... The lnstitute's initiative in this regard

is,of course,commendable.........."- Dr. K.C. Chakroborty, Deputy Governot,Reserve Bank ofIndia

"........... the initiative by ISED is truly relevant. . . .. .; it helps

the Ministryvery much"

-Mr.lJday Kumar Vormo, former Secretary, Ministry of

MSME,Government of India.

"Understanding the MSME sectorcomplex task. Therefore, ISED andrelevancetoday"

- Mr. Rojanikont K, Marfatia,Executive Committee, FlCCl.

in its entirety is a

its work has great

Member, National

"The Government of Punjab finds this initiative of ISED,

really laudable. We extend our full cooperation to lndiaMSME Communication Programme. . ."

- Mr. S.S. Chonny, Principal Secretary (lndustries &

Commerce),Government of Punjab.

"ISED has been rendering yeoman service to the cause ofMSMEs in the country. Congratulations to India MSME

Report Series and the 1MCP......."

- Shri. Murugesh Rudrappa Nirani, Minister for Large

and Medium Scale Industries,Government of Karnataka.

India's only state-of-the-art reporting on MSME sector. . . . . . .. . . . ' '.

TheHinduThe Report is scholarly as well as action-oriented, and will help make thedevelopment of the MSME sector, not only more inclusive, but also moresustainable and meaningful.....

Gl ob a I B u si ness Revi ew.

"The contribution by I5DED stands out.,......This Report gives significantlessonsfordevelopment policyand practice in developing countries"

(Global MSME,Malaysia)