8/19/10 @ All the Data taken from official websites Small and Medium Scale Enterprise (SMEs

8/19/10 @ All the Data taken from official websites Manufacturing Sector http://www.dcmsme.gov.in/ssiindia/defination_msme.htm Micro, Small and Medium Enterprise (MSMEs) definition Enterprises Investment in plant & machinery Micro Enterprises Does not exceed twenty five lakh rupees Small Enterprises More than twenty five lakh rupees but does not exceed five crore rupees Medium Enterprises More than five crore rupees but does not exceed ten crore rupees

8/19/10 @ All the Data taken from official websites Service Sector http://www.dcmsme.gov.in/ssiindia/defination_msme.htm Enterprises Investment in equipments Micro Enterprises Does not exceed ten lakh rupees: Small Enterprises More than ten lakh rupees but does not exceed two crore rupees Medium Enterprises More than two crore rupees but does not exceed five core rupees

8/19/10 @ All the Data taken from official websites What are the main factors of SMEs? Driving Force of Country Economy

8/19/10 @ All the Data taken from official websites Why SMEs are more adoptable? * SMEs develop sector, size, focus, resource and business environment

8/19/10 @ All the Data taken from official websites SMEs role in India

8/19/10 @ All the Data taken from official websites Major Sectors of SMEs

8/19/10 @ All the Data taken from official websites Facing Problems by SMEs

8/19/10 @ All the Data taken from official websites Indian SMEs doesnt get proper support from

• Government Departments

• Banking Sectors

• Financial institutions

• Corporate sectors

Because of this SMEs cant trade on national and international market.

• Though its contribution in Indian Economy

• 45% of Industrial output

• 40% of Export

• 42 million in employment generation

• More than 8000 quality products for national and

• international trade

8/19/10 @ All the Data taken from official websites Facts and Figures of Indian MSMEs sector (2008/09) www.demsme.gov.in No of MSME enterprise 13.2 million Employment generation 42.2 million Production $ 174 billion (08) Export $ 31 billion (08) Share in GDP 8% Share in manufacturing output 45% Share in export 40%

8/19/10 @ All the Data taken from official websites Tack a look of Europe and Indonesian SMEs Sector

8/19/10 @ All the Data taken from official websites Europes SMEs structure Source: 2008/09 European commission

8/19/10 @ All the Data taken from official websites Source: 2008/09 European commission Europe Italy & Germany Between 2002 2007 - 2million SMEs increase - Where as large no of enterprise 2000

• Italy and Greece Highest SMEs, Employees and Micro enterprise

• Germany More no. of employment in SMEs

8/19/10 @ All the Data taken from official websites Positive Points of Europe SMEs structure

• Business friendly environment

• European commission categories SMEs in (2005) (for simplify

• administrative and management)

• - Staff headcount

• - Turnover and/or balance sheet

• Europe commission made Small Business Act, 2008.

• - In which all Europe countries became member and promote SMEs

• sector in structure format and develop SME friendly environment.

8/19/10 @ All the Data taken from official websites Specific areas where European Commission give relaxation.

• General Block Exemption Regulation on State Aid (GBER) a statute

• for Europe Private Companies (SPC).

• Reduce VAT rates (locally supplied services) and simplify VAT

• invoicing

• Accepting E-invoicing as equivalent to paper invoicing

• The revision of the late payment directive

• To better integrate SMEs European Commission do supportive

8/19/10 @ All the Data taken from official websites European Commission developed SME-TEST

• To analyse the impact of legislation on SMEs EU standardize specific SMEs measures

• Improve access standards of NORMAPME (European office of crafts,

• trades and small and medium sized enterprise for standardization)

• The EU network of female entrepreneurs and mechanisms of facilitate

• access to market including Europe business center in China and India.

• Market access database development

• Eco- management

• Easy audit schemes

• People programming

8/19/10 @ All the Data taken from official websites Apart from above other European Commission support to SMEs sector are

• Simplified financial and administrative procedure

• Promote Education and business environment

• Government policy support

• Simplify communication, creating awareness and improve information structure

• Reduce fees structure at the time economic crisis by 50% to 75%

8/19/10 @ All the Data taken from official websites European Commission Target 2007 to 2013

8/19/10 @ All the Data taken from official websites Indonesia (SMEs role in Economy)

8/19/10 @ All the Data taken from official websites SMEs Contribution Employment and GDP of Indonesia

• SMEs share 46%

• other industries, services

• and agriculture share 54%

8/19/10 @ All the Data taken from official websites How SMEs structure capture Indonesia economy?

8/19/10 @ All the Data taken from official websites SMEs Policy packages offered by Indonesia Government Ease of Doing Business Granting tax incentives for MSMEs Preparing policy for the small enterprise

8/19/10 @ All the Data taken from official websites Conclusion: What should India adopt from this two country SMEs industry?

• Increase utilization of installed capacity

• Increase information, orientation and facilities

• Specialized training for administrative, local, national and world market, research and development, innovation and education

• Improve

• - Management

• - Accounting

• - Consulting and supporting services

• - Primary and industrial education level

• 5. Improve quality of input output by using more innovative and economic tools in all the level

8/19/10 @ All the Data taken from official websites Continue 6. Create awareness about global trade laws 7. Subsidies import and export policy of SMEs 8. Increase the coverage of technology and up gradation fund (TUF) 9. Government should reserve rural market for SMEs and protect them from competition by big industrial houses 10. Facilitate by credit instruments support and lowering down rates for start ups and at the time of economic crises.

8/19/10 @ All the Data taken from official websites Reference

• http://igovernment.in/site/india-to-develop-1150-sme-clusters

• www.oecd.org/dataoecd/37/47/34026603.pdf

• http://ec.europa.eu

• http://www.businessworld.in/bw/

• 2009_08_01_The_SME_Whitebook_20092010.html

• http://blog.optionsindia.com/2008/06/sme-sector-in-india-and-random-

• thoughts.htm

8/19/10 @ All the Data taken from official websites

• www.aseanfoundation.org/

• http://www.indonesian-products.biz/masuk.php?subpage=about

• http://en.wikipedia.org/wiki/Economy_of_Indonesia

• http://www.boddunan.com/education/19-engineering/10764-small-

• scale-industry.html

• European Commission guide for SMEs

• http://www.boddunan.com/education/19-engineering/10764-small-

• scale-industry.html

8/19/10 @ All the Data taken from official websites Thank you for participation Presentation by Kamal Dave