The big companies were eating up the prospects of the Small and Medium Enterprises (SMEs) that had been struggling for a concrete policy that could bail out the small units from the challenges.
The issue was discussed in length at event organized by the Secrets of Success for Small and Medium Business - Season II that hosted its 12th event along with local trade associations in Raipur under the Flagship India SME Forum in association with Reliance commercial Capital, Bharti Airtel and Bank of India.
The SMEs are facing tough competition from large companies that had been a major stumbling block for its growth, the speakers observed at the event. The discussion brought to light many sensitive issues that were hurdles in the progress of the SME sector in the state capital of mineral rich state of Chhattisgarh.
The main points reviewed were economic environment, current state of the SME sector and its sustainability, present status of the factors for development, as well as competitiveness of enterprises. The participants drew the attention towards the major issue of policies and schemes of the state and central government not reach upto the SME’s.
The experts opined that the selected product should be allowed for manufacturing to the SMEs only as the same product were manufactured by the large companies as well that was obstructing the marketing of small units.
They also pointed out for sops to the small units as subsidies, all rules and regulations and policies were common for large companies as well as the SME’s.
The SME sector would have benefitted if more SMEs were aware about the schemes, S Rajeev, Deputy Director of MSME said. The bankers blamed SMEs' lack of financial knowledge and inconsistencies in their balance sheets.
The SMEs said the reported complicated procedures, and risk aversion from bankers had been big roadblocks that need to be addressed. They added that the SMEs were unaware of many of the schemes, but the government had to effectively propagate the schemes in an interactive way and encourage more and more SMEs to pick up the benefits.