By Dr.Girish Kelkar
Founder Chairman V3C3E3 Consultants Pvt Ltd, Ex Managing Director Satt-Control AB Sweden.

Today the business world has become very complex and globalization has further added to the challenges of modern organizations in India, especially for SME segments. Globalization has changed the Business World rapidly and this change has transformed the ways of conducting business in a drastic fashion for most of the industries.  Response Time and Speed of Operations, Productivity, Quality of Products and Services, Cost of Operations and Perpetuation of healthy Growth of an Enterprise have always been the watchwords for each and every CEO all over the world. One can easily appreciate that all these objectives have a direct relationship with ‘SME’ segment organizations as well. Additionally, in the new global economic order, the norms of performance “The Benchmarks” are not restricted to any single country. They have become global in the true sense of the term. In this situation the need for smart and reliable work force with self-generated accountability is the need for every professional organization. This has become a must for sheer survival and growth of any organization.

The greatest advantage of promoting small-scale industries and small businesses is that they provide employment without much government interference. SMEs encourage both urban and rural growth. This is the most vibrant sector of the economy and will contribute towards faster growth of the economy and GDP as such. SMEs by & large help the Indian economy, by generating the effervescence in Economic environment in the following ways:

One can easily appreciate that ‘SME’ sector contributes a significant portion of the Indian Economy, (around 40 of the industrial output) and around 45 % of the exports from India.  The growth potential for this sector is very promising and this needs due attention to this vital sector. However, the path for the growth of the SME sector is not full of roses, they have their own share of the problems and impediments in the real world. Hence one has to pay adequate attention to many critical issues that have been hurdles for this vital sector poised for the growth.

Challenges faced by the SME organizations in India: (Indicative List)

Strategic Issues:

Operational Issues:


SMEs will continue to play important role in the rapid progress of the Indian Economy. However, it is evident that such units will have to pay lot of attention & efforts to resolve many bottlenecks & problems specified above.