SMEs: Backbone of Economy

S. Mohini Ratna,
Editor-VARIndia

There is no denying that small and medium enterprises (SMEs) form the backbone of any economy, be it developed or developing ones. And anyone who takes a lackadaisical attitude to this sector of the economy does so at his own peril. Hence, it is an absolute must that we should keep updating our skills on this happening sector of the economy. According to estimates, more than 90 per cent of the companies in the US have less than 50 employees and more than 50 per cent of exports from the country are done by companies with less than 20 employees. 

In India, contribution of micro, small and medium enterprises (MSMEs) towards generation of employment is immense. This sector contributes significantly to the manufacturing output and national exports in the range of 45 per cent and 40 per cent, respectively. It is incumbent on the Government to encourage entrepreneurship and the growth of such ventures. This can be done by providing access to capital.

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