Importance of SME’s in manufacturing industry

Talk about any industry, they cannot be said as complete even if one of their aspects is ignored. Small and Medium Enterprises may be small but as a whole, they have a huge impact on the industry!

Small and medium size enterprises in manufacturing have become a driving force for economic growth in India. It is estimated that half of total or 50% of manufacturing exports of India are accounted by the SME sector. The impetus of large scale industry is definitely more than of an SME, but the number of SME’s in India is far greater than large scale industries which derive its importance.

Talking about jobs and employment, SME’s are one of the largest job-providing sectors in India. Approx 29 million people in India are employed in this sector! Just behind the agriculture sector, they top in employing human resource. 90% of industrial units that are manufactured in India are manufactured by the SME’s. Owing to these factors, they have a high share in India’s GDP rise.

SME’s are either suppliers or manufacturers of finished goods. They are dispersed in different areas and are linked to each other to carry out the manufacturing process. On the other hand, large scale industries mostly carry out the whole manufacturing process under their roof, from managing supplies to getting the product ready. This makes SME’s to connect with several other SME’s and create a chain between them. Many large scale industries also depend upon SME’s for their supplies.

SME sector has also registered a consistent growth rate compared to the other sectors in India as it plays a dual role in the manufacturing sector in preparing the finished goods as well as supplying inputs to the heavy industries.

It is also estimated that the augmentation of SME’s will continue to flourish in the upcoming years. In the period of 20 years, the level of output by Small scale industries has increased by 20 folds and it will escalate more quickly in future.

SME’s can easily adapt to the new changes and trends that hits the market. The production process can be changed easily and shaped accordingly in an SME, but for heavy industries, customization of the whole assembly line is required. This is why SME’s can constantly introduce new products in the market and it keeps their manufacturing process continuous.

After employment, the continuity of manufacturing in SME’s forms an important prospect for the Indian economy. The labor and overhead costs are less significant in SME’s which results in operation at a better rate. Here if a function is not performed well by the designated SME, it can be substituted with another which isn’t possible in large scale ones. This is due to the ample availability of options.

Solution Buggy thereby introduces the sector’s first and only platform where these SME’s can come even with other SME’s to fulfill their requirements of industrial supplies and consulting. It is also favorable for large scale industries which look for supplies from the SME’s. The manufacturing sector has a great impact on the advancement of an economy and therefore a platform where all the manufacturing heads can address their needs and can prove very beneficial.

Industries don’t get started being large; they gradually advance and become one! The emergence of SME’s is always a good sign for the economy and the sector, as it indicates the sectors nourishing ethnicity.

The current scenario in the Indian economy is observing an upsurge in the start ups of these types of industries. If these conditions persist, soon we can say our economy will surpass the top economies of the world!

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