Wednesday, June 4, 2008

CII Business Outlook Survey for micro,small & medium Enterprises

by Jo Black

The CII Business outlook survey (1st in the 2008 series) on Policy Impact and Future scenario for Micro, Small and Medium Enterprises (MSMEs) during January - March 2008 aims to capture in a nutshell the general prevailing mood in the MSME sector, while attempting to visualize the future of the Indian enterprises and prioritizing key policy initiatives for Indian MSMEs sector.

An analysis of the survey findings revealed that 72 % of respondents feel that simplification of labour laws, 66 % respondents feel that promoting innovations while 65 % feel that regulatory changes as the top three key enablers for repositioning of the Indian Small Industry in the changing global scenario.

On the procurement preference policy front, 81% of surveyed respondents support the development of the Procurement Preference Policy for MSEs as statutory under Section 11of MSMED Act 2006, that makes it mandatory for all the Central Government Ministries/Departments, its aided institutions and Public Sector Undertakings, etc., and must be executed by all officials to whom procurement authority has been delegated.

Only 13 % of respondents are not sure about it and only 6 percent respondents have not responded to this question. Earlier the policy was non-statutory in nature having been issued by way of executive instructions and hence it was not enforceable by law.

The poll findings further revealed that 43 % respondents of Small and Medium Industry foresee the dominant role of non traditional source of finance substituting the traditional (banking) sources.

As per survey findings , 10 % of the surveyed respondents of Small and Medium Industry are using capital markets for alternate source of finance, 12 % of respondents are using credit guarantee scheme, 8 % of respondents are using venture capital financing and factoring services for alternate source of finance where as 62 % respondents have not responded to this question.

According to Survey, 66 % respondents feel that promotion of SME cluster development programme is the key to enhance the competitiveness of the Indian Small Industry, 64 % respondents feel that facilitating business development would enhance the competitiveness of the Indian Small Industry while 57 % respondents expect promoting manufacturing innovation as a key to scale up demand.

Proactively, the CII National SME Forum had adapted the theme for the current year 2007-08 as “Building MSMEs, Building India” With the goal - over a five year cycle - to move the Indian SMEs among developed group of SMEs around the globe, the CII National SME Forum is focussing on development of competitive policy framework and adopting best practices.

 

 

 

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