Small and medium scale enterprise

8/19/10 1@ All the Data taken from official websites
Small and Medium
Scale Enterprise
(SME’s

Manufacturing SectorManufacturing 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
Micro, Small and Medium Enterprise (MSME’s)
definition

Service SectorService 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

What are the main factors of
SME’s?
What are the main factors of
SME’s?
Driving Force of Country Economy

Why SME’s are more
adoptable?
Why SME’s are more
adoptable?
* SME’s develop
sector, size, focus,
resource and
business
environment

SME’s role in IndiaSME’s role in India

Major Sectors of SME’sMajor Sectors of SME’s

Facing Problems by
SME’s
Facing Problems by
SME’s

Indian SME’s doesn’t get proper
support from
Indian SME’s doesn’t get proper
support from
o Government Departments
o Banking Sectors
o Financial institutions
o 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 output
o 40% of Export
o 42 million in employment generation
o More than 8000 quality products for national and
international trade

Facts and Figures of Indian
MSME’s sector (2008/09)
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

Tack a look of Europe and Indonesian
SME’s Sector
Tack a look of Europe and Indonesian
SME’s Sector

Europe’s SME’s structureEurope’s SME’s structure
Source: 2008/09 European commission

Source: 2008/09 European commission
EuropeEurope
Italy
&
Germany
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 enterprise
o Germany – More no. of employment in SME’s

Positive Points of Europe
SME’s structure
Positive Points of Europe
SME’s structure
o Business friendly environment
o European commission categories SME’s in (2005) (for simplify
administrative and management)
- Staff headcount
- Turnover and/or balance sheet
o 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.

Specific areas where European Commission give
relaxation.
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 invoicing
o The revision of the late payment directive
o To better integrate SME’s European Commission do supportive…

European Commission developed
“SME-TEST”
European Commission developed
“SME-TEST”
To analyse the impact of legislation on SME’s EU standardize specific
SME’s measures
o 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 development
o Eco- management
o Easy audit schemes
o People programming

Apart from above other European Commission
support to SME’s sector are…
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%

European Commission Target
2007 to 2013
European Commission Target
2007 to 2013

Indonesia
(SME’s role in Economy)
Indonesia
(SME’s role in Economy)

SME’s Contribution Employment and GDP of
Indonesia
SME’s Contribution Employment and GDP of
Indonesia
• SME’s share 46%
• other industries, services
and agriculture share 54%

How SME’s structure capture
Indonesia economy?
How SME’s structure capture
Indonesia economy?

SME’s Policy packages offered by Indonesia
Government
SME’s Policy packages offered by Indonesia
Government
Ease of Doing
Business
• Granting tax
incentives for
MSMEs
• Preparing
policy for the
small enterprise

Conclusion: What should India adopt from
this two country SME’s industry?
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

Continue…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.

Reference…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

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

Thank you for participation…
Presentation by Kamal Dave…

Small and medium scale enterprise

Recomendados

Recomendados

Mais conteúdo relacionado

Mais procurados

Mais procurados (20)

Semelhante a Small and medium scale enterprise

Semelhante a Small and medium scale enterprise (20)

Mais de Kalahub

Mais de Kalahub (20)

Último

Último (20)

Small and medium scale enterprise