Significance Of Micro Businesses In India

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Significance Of Micro Businesses In India
Yash Kumar Writes for search-marketing.in,
provides information on Digital marketing in
india to improve Digital marketing strategies.
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Micro Businesses play a very important role in
ensuring the processes of economic growth. They
are employment-friendly, generating more and more
employment especially rural and urban areas and
they contribute to greater regional balance in
levels of development. According to Micro, Small
and Medium Enterprises Development (MSMED) Act,
2006, an organization will be called Micro
Business, if the investment doesnt exceed more
than 25 lakh rupee in Manufacturing sector and 10
lakh rupee in Service sector. All over India
around 13 million Micro and Small Enterprises
(MSEs) have been registered with the State/UT
Directorates of Industries. These MSEs form in to
clusters in order to boost their competitiveness
and to withstand the competition from large
enterprises. India has over 400 SME clusters and
about 2000 artisan clusters. Utter Pradesh is the
state having more number (4,02,606) of MSEs and
Sikkim and Lakshadweep are the states having less
number (349 76 respectively) of MSEs.
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These MSEs produce more than 6000 products
ranging from simple consumer goods to the
manufacture of many sophisticated and precision
products like electronics control systems, micro
wave components, electro medical equipments,
etc. Contributions of MSEs in India India has a
vibrant Micro and Small Enterprise (MSEs) sector
with a total size of US140 billion, are the
driving force for the long-term growth of the
Indian economy that plays an important role in
sustaining the economic growth. According to the
World Bank Institution, MSE in India contribute
45 to employment, 40 to GDP and 35 to
exports. Around 95 of the MSEs are industrial
units and its present contribution to Industrial
production is 39 and is expected to go up to
45. MSEs share to national exports currently is
33, which will increase to over 40 in next five
years. MSEs providing employment to 322.28 lakh
persons in 2007-08 and is projected to provide
employment to 391.73 lakh persons in 2011-12.
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Financial source for MSEs The government has
identified three important areas for increasing
competitiveness in this sector technology
including quality, skills development, and
finance. Of the three, technology and quality
were to be focused, more than 15,000 MSEs have
been assisted in obtaining ISO certification. The
government is focusing on various schemes and
policies for the smooth flow of the
business. MSEs get the financial support in the
form of Incremental credits from Public sector
banks, from Pvt./Foreign Banks and SIDBI/SFCs and
from Emerging Sources (VC-PE, ECB, Factoring,
etc.) Public sector banks are the major source in
crediting the MSEs (around 58). The government
is taking measures to provide credit support and
fiscal support and the credit flow has more than
doubled from Rs.67,000 crore to Rs.1,48,000 crore
since 2005. In spite of the support given by the
Government MSEs as a whole has been lagging
behind in terms of growth and productivity.
According to the results of the Third All India
Census of MSEs with reference year 2001-02, the
number of sick units during 2004-05 and 2005-06
were 1,38,042 and 1,26,824. The number of sick
MSEs high in the states of Tamil Nadu,
Maharashtra, Madhya Pradesh, Assam and Bihar. The
main constraints, which the SME still face not
only recession but also credit crunch
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About Search-marketing Search-marketing.in
website is a useful resource which caters to
micro businesses on developments in digital
marketing in India. It provides information on
digital marketing strategies and helps Indian
micro businesses to establish strong online
presence and to leverage the Internet for
business performance and growth.
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