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India MSME Report 2011 Twelfth Plan Needs an Aggressive Approach, July 2011

19 September 2011

Source :  SME World

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.