...PROLOGUE: An MSME (Micro, Small and Medium Enterprise) is defined by RBI/GOI differently for the Manufacturing and the Services Sector, as follows: * Manufacturing Sector: Manufacturing sector refers to enterprises engaged in manufacture or production, processing or preservation of goods. The definition of Micro, Small and Medium Enterprises under the manufacturing sector is as below: | | * A micro enterprise is an enterprise where investment in plant and machinery does not exceed Rs.25 lakh; | | * A small enterprise is an enterprise where the investment in plant and machinery is more than Rs.25 lakh but does not exceed Rs.5 crore; and | | * A medium enterprise is an enterprise where the investment in plant and machinery is more than Rs.5 crore but does not exceed Rs.10 crore. | * Services Sector: Services sector refers to enterprises engaged in providing or rendering of services. These will include small road & water transport operators, small business and professional & self-employed.The definition of Micro, Small and Medium Enterprises under the services sector is as below: | | * A microenterprise is an enterprise where the investment in equipment does not exceed Rs.10 lakh; | | * A smallenterprise is an enterprise where the investment in equipment is more than Rs.10 lakh but does not exceed Rs.2 crore; and | | * A medium enterprise is an enterprise where the investment in equipment is more than Rs.2 crore but does not...
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...Preamble: | The Micro, Small and Medium Enterprises (MSME) Sector, particularly the tiny segment of the small enterprises, faces huge challenges as under: * Competition from both domestic & multi-national companies. * Inadequate access to finance due to lack of financial information and non-formal business practices * Lack of access to private equity and venture capital * Lack of access to inter-state and international markets; * Limited access to secondary market instruments * Fragmented markets in respect of their inputs as well as products * Vulnerability to market fluctuations * Limited access to technology and product innovations * Lack of awareness of global best practices * Considerable delays in the settlement of dues/payment of bills by the large scale buyersThe MSME sector therefore looks to the Banks for * Single window dispensation. * Quick decision with least Turnaround Time, and above all, * Better service.It is therefore the Bank’s priority:- * to provide timely and adequate credit to the MSMEs, * to encourage their Technology Upgradation, for better quality and competitiveness of their product(s), and * even pro-actively detect sick and viable units in time, so as to nurse them back to health through appropriate restructuring.With the deregulation of the financial sector, the ability of the bank to service the credit requirements of the MSME sector depends on the underlying transaction costs, efficient recovery processes and...
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...Vol . IV : Issue. 14 ISSN:0975-9999 MICRO, SMALL AND MEDIUM ENTERPRISES (MSME) IN INDIA: AN APPRAISAL Dr.S,Ganapathy Associate professor C.Mayilsamy Doctoral research scholar, Department of International Business and commerce, Alagappa University, karaikudi. ABSTRACT Micro small and medium enterprises help in promoting economic growth and employment opportunity. Before 2006 this sector was called as a Small Scale Industry. Thereafter it was converted as an MSME sector. The MSME growth is incomparable by the help of bank credit. Micro small and medium enterprises and their role in economic growth and employment generation in the Indian context .the article how policy environment for promoting MSMEs changed from ‘protectionism ‘during the pre-1990s to ‘export orientation’ during the post-1990s. The key constraint faced by the MSMEs including access to credit and technology, redtapism and the like. The MSEs to promote the rural economy for in general and rural women empowerment in particularly the rural women are taken ,economic improvement ,social development, and individual decision making through the . MSEs.the MSEs are promoting the rural entrepreneurship. Key words: MSME, SME , SSI, Credit Rating Introduction Indian economy based on rural economy .Father of nation mahatma Gandhi told India “lives in village”. T he r eal national development through the rural economy .the development of rural economy through the r ur al bas ed micr o, small a nd medium enterprises...
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...Responsibility & MSMEs: A study of Corporate Social Responsibility Trends and Practices in India”. Author: Prof. (Mrs.) Mrinal Sanjay Rao Associated with Sinhgad Institute of Business Administration & Research, Pune, as Assistant Professor. Educational Qualifications: LL.M, M.P.M., D.L.L. & L.W. (Pune University) Work Experience Details:- Industry: 3 years. Academics: 4.5 years. Contact: C/o P R Kashikar, flat no. 206, Om Alankar Housing society, Opp. Chintamani Nagar, Bibwewadi, Pune- 411037. Maharashtra. India Ph.- 020- 24281627/ 9049241146. Email: mrinal.rao241@gmail.com Title of Paper: “Social Responsibility & SMEs: A study of Corporate Social Responsibility Trends and Practices in India”. ABSTRACT: The past twenty years have seen a radical change in the relationship between business and society. Key drivers of this change have been the globalization of trade, the increased size and influence of companies, the repositioning of government and the rise in strategic importance of stakeholder relationships, knowledge and brand reputation. Businesses have come under increasing pressure to demonstrably engage in activities which are described as corporate social responsibility (CSR). The term CSR can be defined in terms of the responsiveness of businesses to stakeholders’ legal, ethical, social and environmental expectations, is one outcome of these developments. The contribution of MSMEs to the economic...
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...MECHANISM FOR REVIVAL OF SICK MSMEs *Dr. Sadiqua Tabassum Asst. Professor The Crescents College of Business Management e-mail: sadiquatabassum@yahoo.com ABSTRACT In the pursuit to create a vibrant MSME sector Ministry of MSME, Government of India has taken multi-pronged strategy. The focus is not only on the issues related to starting and growth of MSMEs but ensuring that they sustain their business. However, due to various reason MSMEs are prone to sickness. There has been an increase in MSME sickness. There have been internal causes relating to Planning, Implementation & Production and external causes like Infrastructural bottlenecks, Finance Constraints, Marketing Constraints...
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...ni-msme - the premier institute ni-msme, the pioneer institute in the field of MSME is playing a major role in providing probusiness environment to foster the progress of MSME towards success and prosperity. The raison detre of this Institute is to assist the Government in formulating policies for micro, small and medium enterprises and to help the practising and potential entrepreneurs through a host of services like training, research, consultancy, information, education and extension. The Institute is a training ground for senior technocrats, bureaucrats and bankers who come here to gain expertise and knowledge in order to equip themselves with the latest practices and streamline their operations. Set up in 1960, ni-msme has made valuable contributions by creating an impressive record of achievements beyond the Indian shores, enabling other developing countries to get the benefit of the Institute’s facilities and expertise. ni-msme’s activities are changing from time to time to meet the needs of enterprises in the context of globalisation. Training Programme on MARKETING STRATEGIES FOR SHG PRODUCTS IN THE MODERN ERA (16-18 March 2016) Located in a sprawling and enthralling campus amidst a rich natural setting, ni-msme is well equipped with both physical and academic infrastructure. In keeping with the changing times and technological changes, the Institute has updated its style of functioning by focusing on the use of IT in every aspect of its activities...
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...and dynamic sector of the Indian economy. SME’s not only play crucial role in providing large employment opportunities at comparatively lower capital cost than large industries but also help in industrialization of rural & backward areas, thereby, reducing regional imbalances, assuring more equitable distribution of national income and wealth. SME’s are complementary to large industries as ancillary units and this sector contributes enormously to the socioeconomic development of the country. XIV. References: [1]Annual Reports 2013-14, Ministry of Micro Small and Medium Enterprise, Government of India. [2]“Ministry of Micro, Small & Medium Enterprises, 2007: Micro, Small and Medium Enterprises in India: An Overview”, Ministry of Micro Small and Medium Enterprise, Government of India. [3]MSME Development Act 2006, Ministry of MSME, Government of India. [4]“Final Results: fourth All India Census of Micro Small and...
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...Empowerment OF MSME INDEX: 1. What is MSME & Its role in country 2. Problem facing by MSME 3. Solution to the problem 4. Empowerment of macro & micro economy Empowerment of MSME The Government of India has enacted the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 in terms of which the definition of micro, small and medium enterprises is as under: (I) Enterprises engaged in the manufacture or production, processing or preservation of goods as specified below: (i) A micro enterprise is an enterprise where investment in plant and machinery does not exceed Rs. 25 lakh; (ii) A small enterprise is an enterprise where the investment in plant and machinery is more than Rs. 25 lakh but does not exceed Rs. 5 crore; and (iii) A medium enterprise is an enterprise where the investment in plant and machinery is more than Rs.5 crore but does not exceed Rs.10 crore. (II) Enterprises engaged in providing or rendering of services and whose investment in equipment (original cost excluding land and building and furniture, fittings and other items not directly related to the service rendered or as may be notified under the MSMED Act, 2006 are specified below. (i) A micro enterprise is an enterprise where the investment in equipment does not exceed Rs. 10 lakh; (ii) A small enterprise is an enterprise where the investment in equipment is more than Rs.10...
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...www.nitie.ac.in Volume 7 Issue 1 StreetAtNITIE In-Fin-NITIE ALSO INCLUDES: Bank Loan for Startups MSME Sector Development Global Turmoil and Indian Capital Market IN-FIN-NITIE Vol 7 Issue 1 IN-FIN-NITIE Vol 7 Issue 1 MESSAGE FROM THE CONVENOR Want to become an Investment Banker or a Financial Research Analyst Stop dreaming…Add the skill sets required to become one… IIQF is the pioneer of high-end finance education in India. It is an education initiative of top industry practitioners who have pioneered the most sophisticated financial technologies in India like Portfolio Risk Management Models and Systems and Algorithmic Trading Systems using High Performance Parallel Computing. “A mere 25% of graduates that India produces every year is actually employable. Even though India is poised to become the third largest economy in the world by 2050, out of all the graduates that pass out in an academic year, only 25% are suitable for getting inducted into the industry.” Jeffrey Fuller, Principal Advisor of Human Capital. There exists a huge gap between the skills that are required by the industry and what the Indian academic system produces. The objective of IIQF is to impart training to students in those skill-sets that are in demand in the industry and make them industry ready, or as we call them “The Street-Ready”. Certificate Program in Advanced Financial Modelling in Excel and VBA Certificate Program in Financial Modelling in Excel ...
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...TOYS – NOT A CHILD'S PLAY TO INDIA Lakshmi Assistant Professor Chinmaya Institute of Technology, Kannur Introduction:- Indian toy industry which is more than 75 years old is on a path of economic recovery. Owing to the downturn in Indian economy this industry has witnessed a stagnation and degrowth for the past few years . In 2012 the current value growth of toys fell to 17%. The major contributiroies to this fall was inflation and influx of cheap chinese toys. However it is pertinent to note that despite the...
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...Factors influencing ERP implementation in manufacturing industries in India Introduction The global financial crisis provided an opportunity to many small and medium scale Indian enterprises to expand their business operations to other countries by acquiring businesses overseas. The crisis made many such companies change their way of conducting business by adopting sophisticated business practices. Such an initiative has taken them a step closer to their larger business conglomerates in terms of enhanced competitiveness and efficiencies. By implementing enterprise wide information technology (IT) solutions, Indian micro, small and medium scale enterprises (MSMEs) are giving themselves a chance to emerge as big players. This technology enhancement boosts their overall brand image amongst their export partners and increases their chance to grow bigger in the domestic market as well. ERP systems (a very popular form of enterprise-wide IT solution) are designed to achieve integration and streamlining of internal processes by providing a suite of software modules that cover all the functional areas of a business. However, increasingly we hear of the failure of ERP implementations (Davenport, 1998). The authors have studied MSME organizations in the manufacturing sector and have reported failure at ERP implementation. As a result, there has been expanded research focusing on the implementation process. Objective The purpose...
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...money to the borrowers for a purposeful task, and provides a facility to deposit and withdraw money when needed and charge for it. HISTORY OF BANKING IN INDIA Phase I The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. These three banks were amalgamated in 1920 and Imperial Bank of India was established which started as private shareholders banks, mostly Europeans shareholders. In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up. Reserve Bank of India came in 1935. During the first phase the growth was very slow and banks also experienced periodic failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To streamline the functioning and activities of commercial banks, the Government of India came up with The Banking Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was vested...
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...ICC Banking Summit Kolkata 18 May 2013 Foreword Over the past couple of years, the Indian banking sector has displayed a high level of resilience in the face of high domestic inflation, rupee depreciation and fiscal uncertainty in the US and Europe. In order to stimulate the economy and support growth of the banking sector, the Reserve Bank of India (RBI) adopted several policy measures. © 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Asset quality, capital adequacy, financial inclusion and talent management are some of the key issues facing the Indian banking industry, which despite serving the second largest populated country in the world with a total of 87 banks (including 26 public sector banks, 20 private banks and 41 foreign banks), as per the RBI, reaches out to only about half of the country’s households, scripting a nominal global footprint. The rising consumerism from the emerging ‘middle’ India and the higher purchasing power in rural India on account of rising employment provides opportunities for banks to look beyond the traditional customer segments. However, these segments would require flexible operating models which would ensure responsiveness at the last mile and at the same time be viable for the banks. On the other hand, global aspirations of Indian corporates calls for funding...
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...International Conference on Technology and Business Management March 18-20, 2013 Problems affecting the growth of small and Medium Enterprises (SMEs) in India Lubina Zaidi Lubina.zaidi@gmail.com Faculty of Management Studies, University of Delhi Small and Medium Enterprises (SMEs) play a pivotal role in the development of the country. It has made significant contribution to industrial production, export and employment generation. In developing countries as well as developed countries they are important from the point of view of employment generations, which is very important in countries like India with huge backlog of unemployment in the urban sections of the economy. It has been observed that their composition depends upon the way the production is being organized in the economy .However in India Government deliberately planned the growth of SMEs to achieve certain economic and non-economic objectives. India has registered a consistent high economic growth (6-9%) over the last decade and was able to survive and sustain world recession triggered in 2008. For the sustainability of this kind of growth proper nurturing of SME sector is imperative. This paper will detail various challenges being faced by Indian SMEs, the role of government in upliftment of staggering Indian SMEs as well as the impact of government initiatives and policies on the upliftment of Indian SMEs. This paper also highlights the recommended solutions so that SME sector is empowered to perform better...
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...Priority Sector Schemes- a) Credit assistance to women entrepreneurs in tiny and SSI sector b) Credit Assistance to women beneficiaries in other Priority Sector Schemes c) Credit facilities to women entrepreneurs under various Govt. sponsored schemes like -Prime Minister's Rozgar Yojana(PMRY) -Swarnjayanti Gram Swarozgar Yojana(SGSY) -Swarnjayanti Shahari Rozgar Yojana(SJSRY) -Differential Rate of Interest Scheme(DRI) -Micro Credit to Self-Help Groups(SHGs) PNB Finance for Women (Including Housewives) [pic] PNB enables housewives and other ladies to supplement family incomes and to use their spare time profitably through this scheme by taking up projects as artisans, or under village and cottage industries, SSI, small business and retail trade. Industrial projects requiring higher assistance may also be considered under the scheme of financing small-scale industries. Eligibility Any Woman/Housewife, 18 years of age and above, living at a place for more than 6 months, who has not been a member of any industrial co-operative society and not indebted to any cooperative or state agency. |Amount of loan | | |[pic] | Need based, subject to ceiling of Rs.25,000/- per borrower for purchase of machinery/equipment etc. and meeting...
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