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MICRO SMALL AND MEDIUM ENTERPRISES

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MICRO SMALL AND MEDIUM ENTERPRISES Powered By Docstoc
					  MICRO SMALL AND MEDIUM
       ENTERPRISES
Group 7
Anup Kumar Rathi
Hema Prabha.S
Himani Sharma
Manish Gupta
Shivam Rastogi
Shruti Shrinivas
Vijayendra Rao
Vishal Singh
Contribution of MSMEs
              Summary
 Ministry   of MSME has recommended at least 20%
 of public procurement should be from MSMEs
 3.5% of public   procurements are from MSMEs
     Concerns for MSMEs
 Additional Investments and Capacity Expansion

 Frequently changing requirements

 Delayed waiver payments
Concerns for government

  Quality of supplies

  Formation of Cartels
FOCUS OF THE ARTICLE
   Benefits of doing business with the Government

   Level of preparedness exhibited by MSME’s

   Various associated hiccups
Government’s Stand

   Increase in Quality

   Transparency in procurement process

   E-procurement schemes
Relevance of the case in MSME
financing
The case has thrown light on following important
 issues

   Delayed payment from PSUs

   Slow refunding process

   Increased threshold amount for bidding
Current Issues w.r.t MSME
financing
   Inadequacy of working capital

   Difficulties in repaying term loans as well as interests
    due to slowdown in economy

   Access to funds for new projects/start ups

   High cost of credit and dominance of unorganized
    sector in financing
Reasons that lead to the 20% ordinance

Reduced Production in MSMEs
Risk aversion by banks
Current level of government purchases from MSMEs

Benefits to MSMEs by way of this ordinance

Increased supplier base
Assured government payment
Ease to get advances
Increased investment
   Precautionary steps to realize the
    potential of Public Procurement

    E-procurement system
    No unrealistic entry barriers to MSMEs
THANK YOU

				
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