SCMS
Centre for Research on
‘Small and Medium Enterprises’
Center for SME in SCMS has been established with
the objective of developing expertise in the management
of SMEs through intensive research. Our mission
with regard to research is to develop SCMS as
an international centre of academic excellence
to help industry and profession and to benefit
the society in general. The research activities
of the centre will incorporate both studies of
direct relevance to the needs of SMEs as well
as more scholarly work aiming at expanding the
stock of knowledge in this field. Active partnership
of the Institute with the SMEs is envisaged so
that meaningful research will result in providing
inputs to develop complete entrepreneurs in the
Small and Medium Entrerprises.
Many developing countries are now recognizing
that the Small and Medium Enterprises (SMEs) are
crucial to economic growth and are implementing
policy measures to foster and encourage them.
Even in developed countries, there is increasing
awareness of the vital role such enterprises can
play in the economic life of those countries.
An organization is considered an SME or a large
corporate based on its annual turnover. But the
turnover varies from country to country. For instance,
in the West businesses with a turnover of less
than $1 billion (Rs 5,000 crore) are designated
as SMEs. Whereas in India the cut-off is as low
as $20 million (Rs 100 crore). By this definition,
IDC India estimates that over 70 percent of enterprises
in India fall under the SME segment.
In India, SMEs have shown phenomenal growth in
the last four decades and have emerged as the
backbone of the Industrial economy. The SSI sector
alone accounts for 34% of the nation’s exports
and 40% of the industrial production. It is a
vibrant segment of the Indian economy and employs
over 27.1m people across more than 11.4m units,
spread across both rural and urban areas.
The major contribution of the sector is in creating
employment opportunities at lower capital cost.
During 2003-2004, the sector registered a growth
rate of 8.6%, compared to 6.9% for the entire
industrial sector. The SSI sector accounted for
6.81% of the 25% the manufacturing sector contributed
to GDP in 2002-2003. Total budgetary allocation
for ‘04-‘05 is Rs.414 crores and RBI has directed
banks and FIs to provide corporate – linked SME
cluster models. On the anvil is also the creation
of a separate trading platform for SMEs.
SMEs get started with a low capital investment
and get commissioned within a short gestation
period due to the high degree of entrepreneuarial
spirit. The success of the enterprise primarily
depends upon the managerial competence and many
enterprises do face problems of acquiring these
competencies. As the enterprise grows and expands,
such inputs are all the more important since the
entrepreneur have to acquire capabilities to exercise
multiple functions or delegate these functions
to professionals
In a competitive environment, the difference between
success and failure of an enterprise rests in
the acquisition and exercise of management knowledge,
skills, and techniques in its business, especially
the SMEs.
Current Research
The center is already into research on “Sickness
in SSI units in and around Kalamassery – an entrepreneur
perspective”.
