1. B.Veerabramham
Research Scholar
SKIM, S.K university
Anantapur

2.  The micro, small and medium enterprises (MSME) sector is one
of the most vital sectors of the Indian economy in terms of
employment generation, the strong entrepreneurial base that
helps to create its share in production and mass employment.
 There is enough evidence to suggest that a strong and vibrant
Small and Medium Enterprises sector is one of the key elements
responsible for attaining 'financial inclusive growth'. Creation of
higher levels of employment per capital invested, addressing the
issue of employment to a large number of the under-privileged
and disadvantaged sections of society, overcoming the obstacles
for rural and semi-urban prosperity, optimizing utilization of
locally available resources, providing an enabling environment
for the millions of young Indians to participate in the nation-
building task are areas of foremost concern in India's agenda for
development.

3.  A Small Enterprise should be considered 'Sick' on account of the
following:
 a) Any of the borrower accounts of the unit remains substandard
for more than six months i.e. principal or interest, in respect of
any of its borrowed accounts has remained overdue for a period
exceeding one year.
 b) There is erosion in the net worth due to accumulated cash
losses to the extent of 50 per cent of its net worth during the
previous accounting year; and
 c) Unit has been in commercial production for at least two
years.

4.  1. Credit and its timely availability
 2. Lack of innovative marketing practices
 3. Need for Technology Management
 4. Need to reduce costs by cluster approach
 5. Need for Skill up gradation of manpower
 6. Need for better infrastructure through
dedicated industrial parks

5.  Private participation in economic development of
the state.
 Balanced development of tiny, Small & Heavy
sectors.
 Strengthening of traditional industries.
 Promotion of Exports.
 Attracting NRI investments.
 Attracting Foreign Investment.
 Assured Security of life & property.

6.  Recognition of the role of service sector.
 Interaction with industries.
 Formulation of industry specific Tailor made
Packages.
 Review of Tax Structure.
 Preservation of Environment and Culture Heritage.
 Revitalization of existing Investments to make them
productive.
 Up gradation of technical entrepreneurial skills.
 Credit Guarantee Fund Scheme For Small Industries

7.  For entrepreneurs, small business financial
management is a vital aspect of growing a profitable
company. Implementing sound economic principles
and keeping a close watch on cash flow will help lay a
solid financial foundation for the new venture.
Monetary policies and procedures for effective cash
management need to be part of the entrepreneur's
business plan. It is also suggested that Government
should conduct special EDP’s for training the
entrepreneurs in financial aspects.

8.  Our findings strongly suggest that the provision of
assistance to priority customers results in
inefficiencies at the firm level, making the recipients
more prone to the risk of sickness. We conclude that
increased sickness rates reflect an ongoing
adjustment process in the aftermath of the 1991
liberalization. Yet the shakeout remains incomplete as
long as de facto exit constraints remain in place and
sick firms are not actually liquidated.