Innovative Approaches for MSME'S

Innovative Approaches for MSME'S

From left to right: P. Ganesh (President, TCCI), S. Adikeshavan (Chief General Manager, SBT) and Tom Jose (Additional Chief Secretary, Labour and Skill Development, Government of Kerala) at Business Standard Smart Business in Trivandrum on February 4, 2015, in association with the Trivandrum Chamber of Commerce and Industries (TCCI)
 

“Creation of job opportunities is vital not only for economic reasons, but politically too. On the social front too, employment generation is a critical factor, and the MSME sector can contribute a lot to attain this target,” said Tom Jose, Additional Chief Secretary, Department of Labour and Skill Development, Government of Kerala. Talking on ‘Issues Concerning MSMEs’ at the Business Standard Smart Business conclave at Thiruvananthapuram, organized in association with the Trivandrum Chamber of Commerce and Industries (TCCI), he said that India could have focussed more on small and micro units. “Our eyes are set more on the bigger guys in the industry,” he added. He also said that enhancement of skill is very essential for the development of MSME sector. Lack of skill makes youth to earn lower income, he said.

 

S. Adikesavan, chief general manager, State Bank of Travancore (SBT), said that there should be a separate loan policy for banks to fund MSME units. Banks should adopt a flexible loan policy towards the needs of this sector. He added that MSME units in India were reluctant to tap the capital market for raising fund for fear of losing control over their business. “This will not happen,” he said, “as most of the leading groups in India have just 15 -25 per cent holding in their respective companies. He also said that MSME units should comply with financial standards from the beginning itself. “Financial discipline is essential for the development of doing business,” he said.

P. Ganesh, president, TCCI, in his presidential address said that 40 per cent of the manufacturing business in India was done by the MSME sector. It was the single largest employer in the country, he said. He suggested that cluster development was the road forward for the growth of small units. “Corporates, NRIs and high net worth Individuals should be encouraged to participate in raising equity in MSME units,” he added.

After an active Q&A session, Suresh Mathew, honorary secretary , TCCI, proposed the vote of thanks.