India has a tremendous scope and, potential for investors and, entrepreneurs, as far as business opportunities are concerned. India has always been in the limelight when it comes to SME business. By SME’s, we mean small and medium enterprises that maintain revenues or a number of employees below a certain standard. Every country would have its own set-standard of what it considers as a small and, medium-sized enterprise. In the Indian context, an industrial organisation that has investments in fixed assets, not exceeding ₹10, 00,000 falls under the category of small business. A small-sized enterprise is an organisation with less than 50 employees, while a medium-sized enterprise is one with fewer than 250 employees.
The opportunities for propagating SME business are substantially broad in every sector, be it – education, automobiles, financial services, telecom, media, food, real estate and much more. This makes India an epicenter for suitable SMEs to come out of their shell and, take advantage of the growing popularity of entrepreneurship in India. Therefore, an individual, who is striving to explore business opportunities in India, should carry out a research on the SME sector, beforehand, in order to gain useful insights regarding how to go about the rapidly evolving trade sectors in India.
SME and Indian Economy
Small and medium-sized enterprises hold a crucial importance in nurturing and, cultivating the benefits offered by the Indian economy. They are the most important source of entrepreneurial aids, modernization, and employment. SME businesses are the principal contributor to the economy of any nation and, the same goes with the Indian economy.
In fact, SME is one of the most vital sectors of Indian economy as it accounts for the largest number of employment, generated by any segment in India. Pertaining to the fact that more than 65% of Indian population, resides in Tier-2 and, Tier-3 areas, small businesses emerge out as a major source of income for many in these areas. Closely entailing agriculture, SMEs in India is the second largest employer of live resources.
New opportunities in SME business
The SME marketplace of India, presents a contradiction to the myths, as it is considerably large and, bustling with newer, more lucrative opportunities. Drastically amplified purchasing power and, consumerism is what pushes the business landscape in India. Therefore, there is an opportunity for comprehensive competence, through which investors and entrepreneurs, can accrue benefits to a large extent. An investment, in a small business opportunity, promises profitable returns and, success in a short span of time.
Reasons behind growth in SME business
There are various reasons due to which the small scale business in India has witnessed a spurt of growth. Some of these factors are:
- High contribution to domestic production
- Low investment requirements
- Significant export earnings
- Capacities to develop appropriate indigenous technology
- Competitiveness in the export markets
SMEs opportunities are getting quite exciting and, innovative with the passing of every year. There are a number of retail business ideas for entrepreneurs who are concerned to set up a SME in India. However, investors planning to invest in this sector must make sure that they make a wise choice and, use the available resources in the most pragmatic way, in order to optimise the benefits.
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