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Micro, Small and Medium Enterprises in India: A Review of Performance

Author:
J. Rama devi   B. Ramachandra Reddy  


Issue Date:
2014


Abstract(summary):

Micro, Small and Medium enterprises (MSMEs) play a key role in the development of economies with their effective, efficient, flexible and pioneering entrepreneurial spirit. It is one of the most vital sectors of the Indian economy in terms of employment generation, the strong entrepreneurial base that helps to create its share in production and mass employment. There is enough evidence to suggest that a strong and vibrant Small and Medium Enterprises sector is one the key elements responsible for attaining 'financial inclusive growth'. Creation of higher levels of employment per capital invested, addressing the issue of employment to a large number of the under-privileged and disadvantaged sections of society, overcoming the obstacles for rural and semi- urban prosperity, optimizing utilization of locally available resources, providing an enabling environment for the millions of young Indians to participate in the nation-building task are areas of foremost concern in India's agenda for development. There are different size of the enterprises, variety of products and services and level of technology. It helps in the industrialization of rural and backward areas. It reduces regional imbalances. It provides equitable distribution of national income and wealth. MSMEs have the advantages of generating gainful employment with low investment, diversifying the industrial base, reducing regional disparities through dispersal of industries into rural, semi – urban and backward areas.


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