Small and Medium Enterprises in India

 List of SMEs - Challenges & Growth on Indian economy

 


Small and medium enterprises (SMEs) are those businesses that generate their revenues, useful assets in a restricted way due to fewer resources employees who fall below a certain threshold. The reason behind it the limited budget in their pockets. On the other hand, large firms employ a large number of people by making use of innovative technologies and high-tech resources. Still, SMEs are the backbone of Indian economic growth more than large enterprises.

The b2b business directories open the door of success for businesses all around the globe. On the basis of the rate of growth of these companies, we are going to share a small list of small and medium enterprises in India.

1.  Foods and Beverages

2.  IT Industry

3.  Textile trade

4.  Health trade

5.  Construction trade

6.  Handicrafts

7.  Banking

8.  Insurance

How SMEs affect the Indian economy?

Once upon a time, a large part of job growth used to arrive from the public sector. Many times, the opposition political parties put allegations on the government for not generating sufficient employment opportunities. And the noticeable part was that they are now mostly using data from the public sector only.

Do you know what is the greatest advantage of promoting small businesses? The small and medium enterprises in India provide more employment without any government interference. These SMEs help to boost both urban and rural growth. You need to know that small and medium enterprises in India play a major role in growing our Indian economy in the following ways:

   High employment rate

   Low poverty rate

   The less urban-rural income gap

   Cut down migration

   Urge regional development

   Increase exports

   Reduce pollution levels

   High production

   Escalate people’s purchasing power

   Revamp the quality of life

However, it is not logistically possible for large-scale businesses to establish themselves in small towns and rural areas. And if anyhow they manage to do so, they restrict themselves to limited industrial and commercial zones.

Challenges in the path of SMEs

Logistics integration is one of the most significant challenges for small and medium enterprises in India. The number of SMEs are increasing and this count comes under pressure from many large enterprises who insist these SMEs amend their old management style both operationally and organizationally.

The large organizations put pressure on small and medium enterprises in India for replacement with integrated systems to boost the speed and fluidity of workflow and manage the transactions more accurately.

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