SME KNOWLEDGE INITIATIVE
Workshop
on SMEs in Asian Region : Harnessing the Growth Potential
Small & Medium Enterprises are spread all over the country and
contributing very significantly to India’s Economic Development.
Their contribution to industrial production, employment creation,
exports, and for providing seedbed for enterprise development is
well known. However, SMEs have been facing serious constraints and
problems for their growth and development, more so in the context
of globalization of the Indian economy. Although many SMEs have
withstood the onslaught of competition to a very large extent. Several
of them are closing down or are on the verge of closure due to intense
competition and particularly due to liberalized import regime. Most
of the SMEs need to improve their managerial skills and build their
capacities to sustain & growth and be a part of the globalized
Indian economy, otherwise they are being left out.
The Government of India has come out with the legislation to intensify
its support to small enterprises and broad base their spread to
include the medium enterprises and services sector apart from the
micro enterprises. The parliament passed the bill and the MSMED
Act 2006 came into effect from June 2006. Rules and Regulations
by the Government of India have now been framed for its implementation
and it has become operational w.e.f. 2nd October 2006. The concept
of small enterprises has undergone a change as follows as per the
act :
a) Enterprises in the Manufacturing Sector :
- A micro enterprise, where the investment in plant and machinery
does not exceed twenty-five lakh rupees;
- A small enterprise, where the investment in plant and machinery
is more than twenty-five lakh rupees but does not exceed five crore
rupees; or
- A medium enterprise, where the investment in plant and machinery
is more than five crore rupees but does not exceed ten crore rupees;
b) in the case of the enterprises engaged in providing or
rendering of Services -
- A micro enterprise, where the investment in equipment does not
exceed ten lakh rupees;
- A small enterprise, where the investment in equipment is more
than ten lakh rupees but does not exceed two crore rupees; or
- A medium enterprise, where the investment in equipment is more
than two crore rupees but does nor exceed five crore rupees.
AIMA has been providing inputs to SMEs in the past by organizing
National Conventions, Round Table Conferences, recognizing excellence
by SME Award and research.
Although SMEs require ample support in various management areas,
this year, AIMA is organizing Workshops to hone the Management skills
to source financing and technology as these are very much needed
for the sustainability and growth of SMEs. The objective of the
workshop is to bring awareness, knowledge and methodology how to
manage accessing funds from the banks, in respect to term loans,
working capital, bill discounting and for modernization of technology
and up-gradation of their enterprises.
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