Fabricating Business Friendly SMEs
Bangalore: The 11 million SME units in India collectively pitch in about 40 per cent of the country’s economic turnout. So by upgrading the SME sector into business friendly environment, a hike in the Indian economy can be accomplished.
Here are some of the influential factors, as stated by Small Enterprise India that are to be considered in order to help SMEs attain a business friendly atmosphere.
1) Taper-off Filing Time
Reducing the filing task enables SMEs to save time and rather focus on their business issues. Manual paperwork can be replaced by adopting the benefits of technology to cut down the filing hour. Indian government can accord to this issue by revising the policies which keep the SMEs engaged for about 8-9 months, in order to receive the permission to start the company.
2) Easing Up Of Taxation
Various taxes such as corporate tax, dividend tax, VAT etc, which are levied on SMEs, serve as bottleneck in achieving development. Lifting up of these taxes or by narrowing them, will aid the SMEs to gather more fund required to magnify their business. Due to the financial defalcation faced by India the best way of narrowing taxes is by dethroning unwanted government agencies that do not serve their purpose.
3) Resource Availability
One of the major challenges faced by SMEs to attain growth is unavailability of adequate resources among which money is the main constraint. Government has to initiate methods to drive in profuse capital to India that will grant SMEs an easy access to fund. Establishing such measures will encourage the SME’s to widen their business which in turn will sum up to overall Indian economy.
4) Improved Infrastructure
Rural regions of India suffer due to poor infrastructural facilities and it also restrains people to start an organization in such areas. Infrastructure includes roadways, garbage disposal and other primary requirements like water and electricity supply. Without possessing these basic needs it is not an easy task to put up a successful enterprise.
Indian government should take keen interest in providing solution to these issues and nourish SMEs to be globally competitive.
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