Hyderabad: India is making efforts at Central, State, banking and ground level to improve the state of affairs of the small and medium enterprises (SMEs) by giving them a conducive system to grow their business. India SME Forum, a national body representing SMEs, is taking steps to facilitate them with market access and funding & mentoring support to reduce mortality rate.
Sushma Morthania, director general, India SME Forum, told Telangana Today, “Money, market and mentorship remain the major challenges for SMEs. India SME Forum has a pool of 90 mentors from across sectors to help our members. We have created a finance facilitation committee that helps the SMEs with banking support. We are also helping companies how to prepare project report, present business plans for loans and scale up their businesses with workshops.”
SME Forum also posts business projects that the SMEs can take up and guides them where they can procure machinery for manufacturing certain products- literally from how to set up business to grow it. The Forum says it sees the entire dynamics of business changing. Many are keen to be job creators than job seekers.
Sign of transformation
She explains, “India which had only seen small scale industries (SSIs) a decade ago is now witnessing the evolution of small and medium enterprises. There were no many business loans available for the businesses. There were only cash credit and term loans facilities that were available against collaterals and securities for businesses which is gradually seeing some transformation. Today SMEs have created their own place and are the second largest employing segment after agriculture. In the last 3-4 years, there is greater awareness and acknowledgement and recognition of the contribution made by the SMEs.”
Hema Jain, president, India SME Forum, Telangana Chapter, said, “We are seeing women entrepreneurs are helping other women to be successful in their business. Business, which traditionally has always been seen as a competitive ecosystem is transforming into a place with constructive collaborations.”
There is a gap among rural entrepreneurs to access market and are seeking help. India SME Forum is looking at this situation closely and is coming out with solutions.
Hema added, “Lack of market linkages and mentoring are the major factors causing high mortality rate among enterprises in India as high as 70 per cent. Cluster development with plug-n-play model will help product-based businesses. Services sector is becoming unviable if the services are not niche. There is also a need to improve the way books of accounts and documents are maintained by SMEs for banks to understand the real health of business to extend them lending support.”
The India SME Forum is a non-profit, non-political, non-governmental & non-trade association, initiative for small and medium entrepreneurs. With over 76,000 members and over 5,00,000 registered SMEs, the forum is India’s largest SME initiative.
Founded in May 2011, for nurturing entrepreneurship and supporting innovative, globally competitive, SMEs in India, it works on enabling them to share best practices and addresses their concerns.