Welcome Guest

Home Article Features Ecosystem  5 Recommendations for Govt to Boost SMEs in India

5 Recommendations for Govt to Boost SMEs in India

SMEs have come to occupy prominent role in the economic growth in many developing countries. They contribute to growth, innovation and jobs and are major drivers of innovation and employment.

Tags: sme, msme, arvind kumar, entrepreneurship, government of india, skill development, education, india water foundation

BY Arvind Kumar  |  Sep 11, 2014 comments ( 1 ) |

SMEs have come to occupy prominent role in the economic growth in many developing countries. They contribute to growth, innovation and jobs and are major drivers of innovation and employment. 
In India, with approximately 30 million in numbers, SMEs play a critical role in generating millions of jobs, especially at the low-skill level. The SME sector should be accorded priority in our national planning.
Lack of communication to entrepreneurs about financing requirements, and education and skills shortages can serve as a potential constraint to having more business-driven employment in the country. The increasing unemployment rate is a pointer to the fact that the education system has failed many people. There are many business people who started with nothing but have built very successful companies. 
Information and communication technology is a viable gainful field for the youth as well as SMEs. Web design and development can give young people formal digital skills and direct experience in the workplace, while helping SMEs get online in the process. The low digital capability of many SMEs is a huge limitation on their growth and productivity. Many SMEs are without a website; many young people can design a website, but lack the training and experience in the workplace to be able to use these skills to get a job. Civil society can help to build a link betweenthe two.
Empowering SMEs, Reducing Unemployment
Undoubtedly, SMEs in India continue to post their growth stories, there is huge potential among Indian SMEs that still remains untapped. Once this untapped potential becomes the source for growth of these units, there would be no stopping to India posting a GDP higher than that of the US and China and becoming the world’s economic powerhouse. For this the growing youth potential in the country needs to be harnessed by SMEs.
There is need for promoting awareness among young people of the opportunities and challenges of entrepreneurship and self-employment, and the role of young people in shaping their future and that of their country’s economic and social development.
Here are some recommendations to take the youth innovation forward. Some of these recommendations to the government include:
1) National and local governments should work together to make business registration as efficient as possible.
2) Government and education authorities should include self-employment as a viable alternative within careers advice.
3) Government should use existing structures, such as chambers of commerce, to support the development of youth entrepreneurship.
4) Governments should encourage schools and colleges to run business competitions that promote start-up opportunities.
5) Government should prioritise investment in youth entrepreneurship initiative to tackle youth unemployment.
The author of this article is Dr Arvind Kumar. He is the President of India Water Foundation, New Delhi.

Please add your comment


September 19, 2014 at 10:17 pm

Thanks Sir for this good article!I request if you can give some article on Eastern Region SME sector.... as I am doing my Ph.d. in this sector..Also would request to list some of problems faced by this sector in Eastern india....

Reply |

Not readable? Change text. Enter the characters as seen on the image (case insensitive)
  Notify me of follow up comments via e-mail   Subscribe for daily newsletter

Related Articles

IIMs entrepreneurial grads

BY Entrepreneur

IIM grads have beaten the common belief that finance and marketing are the sectors for them, choosing every other possible sector and managing them...

Why Women are Better Entrepreneurs?

BY Entrepreneur

Recently a study by FICCI’s ladies organization (FLO) has found that women entrepreneurs face an uphill task when it comes to starting their ...

Small Business in India

BY Ritu Marya

Today 95 per cent country’s industrial units come under Micro, Small and Medium Enterprises (MSME). This sector has around 128.44 units (prov...

Time to Walk the Talk

BY Entrepreneur

A high level task force was set up last year under the Chairmanship of T.K.A Nair to recommend effective measures for the overall development of th...

Education: No Bar, Success: Baar Baar

BY Entrepreneur

It is not the academics that decide one’s success at business but the determination to succeed, the will to work hard and the guts to face ad...

Green with Pride

BY Entrepreneur

Going green is in vogue these days! A survey conducted by Ernst and young recently showed that companies worldwide are likely to spend 70 per cent ...

Enter the ecosystem

BY Entrepreneur

Why do 90% of startups fail within less than two years of starting up? Their ideas are brilliant but they fall sick because of lack of proper guida...

Buzzing Helpline for Enterpreuners

BY Arindam Ghosh

Entrepreneurs are now just a phone call away from getting assistance from the government towards helping them in setting up their own business vent...

Upcycling CWG waste for environment cons

BY Entrepreneur

We have often heard the phrase, “Good riddance of the bad rubbish”, how about turning the tables for once and accept the rubbish and re...

SMEs and Crime

BY Entrepreneur

What’s more, without any proper regulatory body the tentacles are alarmingly growing. Don't you think, it’s about time; we take a stock of...

CWGs waste management

BY Entrepreneur

Further, the Games signage supplier, Signage India Pty Ltd sold this flex banners and billboards which is made of polyvinyl chloride or PVC to Cons...

FISME’s Pre- Budget Wish list for FM

BY Entrepreneur

FISME has put out its wish list for the MSME Ministry and the Finance Minster to look over and react upon. It covers major issues like GST, PMEGP,NSIC...