Small and medium scale enterprise
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8/19/10 1 @ All the Data taken from official websites Small and Medium Scale Enterprise (SME’s
Transcript of Small and medium scale enterprise
8/19/10 1@ All the Data taken from official websites
Small and Medium Scale Enterprise
(SME’s
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Manufacturing Sector
Enterprises Investment in plant & machinery
Micro Enterprises
Does not exceed twenty five lakh rupees
Small Enterprises
More than twenty five lakh rupees but does not exceed five crore rupees
Medium Enterprises
More than five crore rupees but does not exceed ten crore rupees
http://www.dcmsme.gov.in/ssiindia/defination_msme.htm
Micro, Small and Medium Enterprise (MSME’s) definition
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Service Sector
Enterprises Investment in equipments
Micro Enterprises Does not exceed ten lakh rupees:
Small Enterprises More than ten lakh rupees but does not exceed two crore rupees
Medium Enterprises More than two crore rupees but does not exceed five core rupees
http://www.dcmsme.gov.in/ssiindia/defination_msme.htm
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What are the main factors of SME’s?
Driving Force of Country Economy
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Why SME’s are more adoptable?
* SME’s develop sector, size, focus,
resource and business
environment
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SME’s role in India
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Major Sectors of SME’s
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Facing Problems by SME’s
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Indian SME’s doesn’t get proper support from
o Government Departmentso Banking Sectorso Financial institutionso Corporate sectors
Because of this SME’s can’t trade on national and international market.
Though its contribution in Indian Economy… o 45% of Industrial outputo 40% of Exporto 42 million in employment generationo More than 8000 quality products for national and international trade
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Facts and Figures of Indian MSME’s sector (2008/09)
No of MSME enterprise 13.2 million
Employment generation 42.2 million
Production $ 174 billion (08)
Export $ 31 billion (08)
Share in GDP 8%
Share in manufacturing output
45%
Share in export 40%
www.demsme.gov.in
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Tack a look of Europe and Indonesian SME’s Sector
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Europe’s SME’s structure
Source: 2008/09 European commission
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Source: 2008/09 European commission
Europe
Italy&
Germany
Between 2002 – 2007 - 2million SME’s increase - Where as large no of enterprise 2000
o Italy and Greece – Highest SME’s, Employees and Micro enterpriseo Germany – More no. of employment in SME’s
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Positive Points of Europe SME’s structure
o Business friendly environmento European commission categories SME’s in (2005) (for simplify administrative and management) - Staff headcount - Turnover and/or balance sheeto Europe commission made Small Business Act, 2008. - In which all Europe countries became member and promote SME’s sector in structure format and develop SME friendly environment.
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Specific areas where European Commission give relaxation.
o General Block Exemption Regulation on State Aid (GBER) a statute for Europe Private Companies (SPC).o Reduce VAT rates (locally supplied services) and simplify VAT invoicing o Accepting E-invoicing as equivalent to paper invoicingo The revision of the late payment directiveo To better integrate SME’s European Commission do supportive…
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European Commission developed “SME-TEST”
To analyse the impact of legislation on SME’s EU standardize specific SME’s measureso Improve access standards of NORMAPME (European office of crafts, trades and small and medium sized enterprise for standardization) o The EU network of female entrepreneurs and mechanisms of facilitate access to market including Europe business center in China and India.o Market access database developmento Eco- management o Easy audit schemeso People programming
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Apart from above other European Commission support to SME’s sector are…
o Simplified financial and administrative procedure oPromote Education and business environment
o Government policy support
o Simplify communication, creating awareness and improve information structure
o Reduce fees structure at the time economic crisis by 50% to 75%
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European Commission Target 2007 to 2013
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Indonesia (SME’s role in Economy)
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SME’s Contribution Employment and GDP of Indonesia
• SME’s share 46%• other industries, services and agriculture share 54%
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How SME’s structure capture Indonesia economy?
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SME’s Policy packages offered by Indonesia Government
Ease of Doing Business
• Granting tax incentives for MSMEs• Preparing policy for the small enterprise
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Conclusion: What should India adopt from this two country SME’s industry?
1. Increase utilization of installed capacity
2. Increase information, orientation and facilities
3. Specialized training for administrative, local, national and world market, research and development, innovation and education
4. Improve - Management - Accounting - Consulting and supporting services - Primary and industrial education level
5. Improve quality of input output by using more innovative and economic tools in all the level
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Continue…
6. Create awareness about global trade laws
7. Subsidies import and export policy of SME’s
8. Increase the coverage of technology and up gradation fund (TUF)
9. Government should reserve rural market for SME’s and protect them from competition by big industrial houses
10. Facilitate by credit instruments support and lowering down rates for start ups and at the time of economic crises.
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Reference…
o http://igovernment.in/site/india-to-develop-1150-sme-clusters
o www.oecd.org/dataoecd/37/47/34026603.pdf
o http://ec.europa.eu
o http://www.businessworld.in/bw/ 2009_08_01_The_SME_Whitebook_20092010.html
o http://blog.optionsindia.com/2008/06/sme-sector-in-india-and-random- thoughts.htm
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o www.aseanfoundation.org/
o http://www.indonesian-products.biz/masuk.php?subpage=about
o http://en.wikipedia.org/wiki/Economy_of_Indonesia
o http://www.boddunan.com/education/19-engineering/10764-small- scale-industry.html
o European Commission guide for SME’s
o http://www.boddunan.com/education/19-engineering/10764-small- scale-industry.html
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Thank you for participation…
Presentation by Kamal Dave…
