SME Help Desk
This is a platform for interaction and exchange of ideas. We place all incoming enquiries and their responses here so that others with similar questions also may be benefited.
 

I am running a medium type retail stationery outlet in Warangal. As you know, major  retail networks by large Indian companies and MNCs are entering the major cities like Hyderabad and Cochin. How will it affect the prospects of  outlets like ours ,located in medium and small towns? What is the experience in other Countries?(P.Suryanarayana, Beta Trades, Warangal)

This is a complex question. There is mixed experience available from other countries. In countries like UK, a second stage of penetration of major retail outlets like TEXCO and Sainsbury has already started in the peripheral areas of the Country. There are apprehensions by the Asian communities(who own most of the smaller retail shops),that their very existence will be in trouble. The British media  had highlighted these issues in the recent past.

In India, large groups ,like Reliance and the Bharatis, have indicated that they will try to integrate their networks with the  small retailers, rather than try to displace them. In any case,one need to watch the happenings carefully.
One thing, however, is likely. The sourcing of Indian products by the MNCs, consequent on their entry into the Indian market, depends on the international comparative cost advantage of  many Indian products. In the retail sector, this is not likely to favour India significantly. Ofcours, more research on the subject, at this  stage, is crucial
 
The new Ministry for Micro, Small, and Medium Enterprises has come into being. What are the major changes that it may lead to policy in the country?(Y.Ramanathan,State Bank of India, Chennai)
The new Ministry has emerge from the MSME Act, that was passed by the Parliament. The Act envisages a more coordinated effort towards development of MSMEs, in the light of the new developments in the Indian economy and at the global level. At the administrative level, such co ordination has been facilitated by the merging of the two related Ministries, ie, Ministry of SSI and Ministry of ARI.
 
I understand that ISED has conducted detailed studies on the SME sector in India and the UK. What is the role of SME Associations in UK?((Jacob Sahayam, Virudhunagar Small and Tiny Industries Association)

SME sector has been undergoing rapid changes in the UK. During the Thatcher era of the 1980s,active policies for the promotion of SMEs was present. Naturally, Small Business Membership Organisations also had a prominent place. Under the current neo-liberal policies, SMEs themselves are not a priority, though policy statements continue to favour it. Naturally, the role of SME Associations also has come down. Now ,British policy is significantly anchored on value chains, not on SMEs per se.
 
i am working in an SME promotion project in Dhaka. Do you think, I can apply for an Internship in your Institute?(Rafeek Rahman, Post Box No. 312,Dhaka)

There are two programmes available at the Institute. Details are available from this website. You may request for a formal application form, available from this office.
 
Which State in India has the largest number of SMEs?

The SME sector in India has two categories of units: organized or registered,and unorganized .According to the Third Census of SSIs, Tamil Nadu has  the largest number of registered units.
 
What are industrial clusters? How can a cluster be formed? Can an NGO get any government assistance for forming a cluster?
Industrial clusters, in plain language, are groups of businesses, often geographically contiguous, and work on principles of cooperation in some common areas, while competing as individual decision making entities.
NGOs cannot get any assistance under this programme, but they can act as Cluster Development Agents, provided they have the required expertise
 
Do ISED offer any training opportunities for grass roots NGOs that are interested in livelihood promotion?

Yes, the Institute offers training programmes and act as  mentors
 
I  have seeen  from your web that ISED has an Small Enterprise Observatory? I think, this is a very important activity, especially these days when the changes in the industrial sector are so fast .How can I become a member of the Observatory?

You need to make a formal application, along with the nominal fee prescribed.
 
I read your very  important annual publication, the State of Small Enterprise Development in India-2005.This is indeed a great service ISED has been doing for entrepreneurs and NGOs. Congratulations. When  will SSEDI-2007 be published?( R.Shekhawat UNNATI, Jaipur)

Thank you for the compliments. Please pass on the message of SSEDI to your friends and colleagues. The next issue of the volume will be brought out in December,2007)
 
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