Top Stories

India MSME Report 2011 Twelfth Plan Needs an Aggressive Approach

SME WORLD Bureau
Jul 2011
Twelfth Five Year Plan has put forward a 'strategy triangle' involving a role for the micro, small and medium enterprises (MSMEs) but there is a need to have more aggressive approach for inclusive growth, says 'India MSME Report 2011', brought out by the Cochin-based Institute of Small Enterprises and Development (ISED).
 
The aim of the Report is to highlight the state of MSMEs sector on a yearly basis. The Report, this year, envisages on entrepreneurship budgeting, eco system financing models, responsible business, and inclusive industrialization for the sector.
 
The Twelfth Plan has a logical strategy for the MSME sector. But the implementation needs to be made more realistic and aggressive. Often, MSME programmes are considered as a stop-gap arrangement. The effectiveness of policy depend upon the different phases of the enterprise development cycle. Both governments and NGOs have a key role to make relevant interventions at these specific stages appropriately, and to ensure meaningful results.
 
The alternative approach, as above, requires a focus on human resources. The financial institutions should shift themselves to an approach of investing in entrepreneurship, than on enterprises. This will lead to better targeting of their lending policy. Women and youth should be ensured that they get the care they deserve. Entrepreneurship education is one method of bringing them into the mainstream.
 
In the States, priority should change from simply attracting FDI, to development of regions having particular advantages. The concept and strategies of 'regional regeneration' in the context of countries like UK, though historically distinct, can be adapted to the Indian context. For that, the focus on” FDI plus livelihoods” (inclusive growth), as outlined by the draft Twelfth Plan Approach Paper, is not enough. A synergy of several other components, such as BDS, new financial products, innovation, communication, and an ecosystem approach to development are vital.
Comment
Name :

Email Address :

Comment :
Enter the code :*
1 Comments >>
Jon
23 Feb 2013 (15:40:34)
StartupMalaysia.org was founded by a seairl entrepreneur, startup catalyst and evangelist Dhakshinamoorthy (aka “Dash”), and co-founded by Rebeca Hwang from the San Francisco-based firm YouNoodle. Dash’s inspiration and drive for StartupMalaysia stems from his deep desire to see more Malaysian startups going global. This desire was further ignited when he is constantly told that “Malaysian startups don’t feature in global conversations”.