SMEs can be vehicle for growth with equity

Despite being plagued with problems like non-availability of credit, collateral requirement for sanction of loans, difficulties in bulk procurement of raw-materials, problem of storage and design, infrastructural inadequecies, non-availability of manpower and technology, the Small and Medium Enterprises (SMEs) can be instrumental in attaining growth with equity.

Since the distribution of SMEs in the country is even, the development of this sector can lead to prosperity of different geographical regions, said S N Dash, secretary, Heavy Industries, Government of India (GoI).

Speaking at the inaugural session of the national seminar on ‘SMEs in globalised framework’, organised by Utkal University on the sidelines of the Entrepreneurs’ Week celebrations here, Dash said, the MSME sector, which employs 6 crore people in 2.6 crore units across the country, holds the key to the economic growth.

These units contribute 45 per cent of the manufacturing GDP and 43 per cent of the exports of the country.

Stating that the stimulus package announed by the Union government has helped some sectors like automobiles, he said, the industrial production figures for December point to a good growth of the manufacturing sector.

The global situation has posed some problems for the SMEs and they must face the problem with a focused purpose to turn this adverse situation to opportunities.

The implementation of the recommendations of the High Level Task Force headed by the principal secretary to the Prime Minister, T K Nair, is expected to help the SMEs to face the global challanges better.

Orissa governor, Muralidhar Chandrakant Bhandare said, new entrepreneurial activities foster change and generate employment. Stating that the SMEs are recognised as the engine of growth worlwide, the governor said, the SMEs in India are facing problems pertaining to the finance, marketing and absence of physical infrastructure. He stressed on engaging tribals of Orissa in the process of SME promotion in the state.

Binayak Rath, vice-chancellor of Utkal University said, the globalisation has not been helpful for SMEs which are now facing increased competition.

They need to be nurtured by all the stakeholders including government in a regulated regime. Similarly, the self help groups can take care of the needs of the SMEs.

Since globalisation without human values like equity and justice is going to create problems, a balance will have to be struck between efficiency and social equity aspect of the functioning of the SMEs. S Maharana, seminar director, introduced the seminar topic.