Entrepreneurship in the SME Sector

Abstract

In India nature and pattern of industrialization has been undergoing complete change in the post reform era. In a market driven economy, survival and growth of entrepreneur will mean continuous up gradation and creation of the competitiveness In a globalised world, challenges of development of competitiveness are many. For this , the new age entrepreneur needs building up core capabilities constantly in order to improve quality of products, penetrate into new markets, creating brand images, sourcing new resources, upgrade skills and innovating new technology. While success of entrepreneurship much depends upon the technical and managerial skills, it also depends on his/her capability to process and organize resources efficiently. At present there are 350 SMEs clusters in India spread over traditional as well as modern sectors. Fast growing industrial states such as Gujarat, Tamilnadu and Delhi and NCR region have witnessed a large number successful SMEs induced by favorable state policies, market growth, both domestic and international market. Yet in vast majority of the areas, SMEs are not viable due to lack of technical knowledge, inability to access changing mood of the market, inability to bear financial and market risks. All these have constrained them to share the benefits of market economy. Due to inherent constraints embedded in size of operation, development of entrepreneurship in the SME sector is conditional to the development of favourable Govt policies creating external economic environment