Small and Medium Enterprises (SMEs) have a strategic and significant role in the economy. This sector has emerged as a highly vibrant and dynamic sector of the Indian economy over the last five decades. SMEs not only play crucial role in providing large employment opportunities at comparatively lower capital cost than large industries but also help in industrialization of rural & backward areas, thereby, reducing regional imbalances, assuring more equitable distribution of national income and wealth. SMEs are complementary to large industries as ancillary units and this sector contributes enormously to the socio-economic development of the country. SME’s also play a significant role in Nation’s development through its high contribution in domestic production, significant export earnings.
However, SME sector has its own challenges. From inadequacy of capital to unavailability of quality manpower play the role of impediment in the growth of this sector. The SME’s have high potential to generate greater employment opportunities provided they have access to greater capital, quality manpower with professional competency and a suitable strategy to adapt and succeed in evolving global market place.