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A S EM IN A R R EP O R T

ON
S M A LL B U IS EN ESS
M A N A G EM EN T
Presented by:
Priya Dey
B.Com. 6th Sem
Roll No. - 57

ENTERPRISES
A micro enterprise is the smallest size of
business enterprises in a country. Such
enterprises are mostly in informal sector and
very few of them have access to the
conventional
banking
system.
The
entrepreneurs are mostly belonging to the
economically disadvantages or weaker sections
of the society. Financing stands as a great
challenge towards growth and development of
micro enterprises. They are mostly finance
through private sources and in some countries
micro finance institutions and NGOs with
supports from government and other term
lending
institutions
give
financial
accommodations to such enterprises which

By concept SMALL ENTERPRISES are the


business entities with certain official norms or
qualifications, which may vary from one
country to another or even within the same
country at different point of times. In India, at a
time, the term SMALL ENTERPRISE was
known by different names as SMALL
INDUSTRY, SMALL UNIT, SMALL SCALE
INDUSTRY, etc.
The definition of MICRO AND SMALL ENTERPRISE
is not a universal one. Different countries of the world
at different times, have defined the term in different
ways to meet the needs of time and pace.

TOP TEN MICRO AND SMALL


BUSINESS IDEAS/UNITS
School and Office supplies
Customized Jewelry
Greeting Cards
Fast food Restaurants
Thrift Shops
Rental Service
Digital Photography
Wooden Furniture Making
Home decorations
Paintings

These are the top ten Small Scale Business


ideas in India that we ought to try. They are
almost guaranteed to give us steady sources of
income and make us earn reasonable amount
of profit.
Hence, an increase in real per capita income of
a person result in economic development of a
country.

ROLE OF MICRO AND SMALL ENTERPRISES IN


INDIAN ECONOMY:
Economic development leads to a better standard of
living, higher national income, higher per capita
income, better education and encourages higher
savings and investments. Various advantages of small
scale industries to highlight the role of this sector are:
Generation of Employment
Self Employment
Lesser Capital Requirement
Mobilization of Capital
Mobilization of Entrepreneurial Skill
Equitable Distribution of Income
Balanced Regional Development
Savings in Foreign Exchange
Quick Investment

ROLE
OF
MICRO
AND
SMALL
BUSINESS:
A
BRIEF
GLOBAL
PERSPECTIVE
The micro and small business sector has come to occupy a
pivotal position in the economic dynamism of developing
countries. A recent study indicated that in the fast advancing
economy like China Small Enterprises have been the
BACKBONE of the countrys economic transition to a market
oriented, industrialized open economy, thereby prompting a
transformation of the governments role in the economy. In the
sphere of employment generation, the contribution of small
business sector is very significant.

COUNTR SMALL ENTERPRISE SHARE PERCENTAGE OF THE TOTAL


Y
EMPLYMENT (IN %)
USA

50

JAPAN

80

TAIWAN
SINGAPO
RE

79
58

58

50

USA
79

80

JAPAN
TAIWAN
SINGAPORE

In India, Micro and Small enterprises are used


as an efficient tool of progress. In fact, today it
has become a vibrant and dynamic sector and
has been playing a significant role in the socioeconomic development of the country for more
than last six decades. Any discussion on the
role of micro and small enterprises in economic
development of a country will much better be
facilitated if we examine it with relevant
parameters. I am, therefore, presenting a data
under small scale units in India which includes
micro enterprises also.


NumberofMicroandSmall
Enterprises

1994-95

2007-08

GROWTHRATE

79.60Lac

133.68Lac

4.10%

Production
Employment
Export

109116Cr.
191.4Lac
29068Cr.

532979Cr.
322.3Lac.
17760Cr.

13.60%
4.07%
16.26%

11%
Number of Micro and Small
Enterprises

43%
36%

Production
Employment
Export

11%

From the above discussion, finally it is rightly


said that Micro and Small Enterprises are job
providers and technological innovators. They
served as the engines of growth in any
economy. Today, these units have occupied a
prominent place in the global market.
Empherical studies have shown that micro and
small enterprises are an important vehicle for
meeting the growth and equity with social
justice potential objective of developing
economies. And, at last it is encouraging to
mention that the micro and small scale
enterprises account for 35% of the gross value
of the output in the manufacturing sector,
about 80% of the total industrial employment
and about 40% of the total exports of the

BIBLIOGRAPHY
SMALL BUSINESS MANAGEMENT PRINCIPLES
AND PRACTICES RANA BIJOY DEB
A handy guide to Small Business ManagementG.B.Ds EDITORIAL BOARD

Thank You