—Contributed by Sushant Munjal

If one reads the newspapers daily with the news about the Indian economy rising its not everyday that makes one wonder as he/she looks at the other side of the coin and wonder, how is it possible?

Big names acquiring others, new ideas are put forward by many but only a couple get selected and the rest lie in the cold. The rising economy of India has proved that it was possible at all times.

But when we talk about SMEs and SMBs there is a difference which shows and is not noticed by many. Though SMEs have been producing goods which have definitely helped the Indian economy and exports, still they are deprived of many basic facilities such as finance and infrastructure which should have been there in the first place as they are most likely to set-up certain standards which would be impossible for the world to achieve.Judging by the way the SMEs have been operating in the last five or six years its clearly evident that they have given their close counterparts a run for their money.

Some even dispute as they have been lacking with certain factors which the Government of India can provide them with ease like easy knowledge for getting themselves registered as an SME or the ways they are in safe mode regarding their finances.

Both the Sickness and SMEs go hand in hand but there has been a steady progress interms of their financial healing as for the last five years SMEs have come out well and are now stabilizing with effects on the economy which are evidently clear.

Though its not surprising to come across an SME owner who when asked whether his business is an SME replies that he/she is not actually aware of the fact how they can be classified. This is a common problem among the SMEs as they don't know about their own status. Producers who have a turnover below 2 crores also claim themselves as SME owners and those who have above 20 crores also claim the same.

Such basic business illiteracy is one example. Though there are certain benchmarks which clearly can help one classify his/her business, but still owners are not aware of these facts.

Another major problem which the SMEs face is the financial crunch as the banks and lending agencies feel reluctant and hesitate to lend a helping hand to them, simply due to their history of sickness but they have now started to help these SMEs as they have beenshowing promise in the last five years. Many foreign investors are claiming to finance and help these sick SMEs but the owners refuse to take their help as they eye for a stake ranging from minimal to nominal to a major. The mindset of the SME owner refuses to take that extra step as the operator doesn't wants to part with his business. This is solely due to the mindset of the operator, but the new operator is ready to take a plunge and see what it holds for him/her as he/she is aiming sky high and wants the best to come to them with full returns.

Slowly the age-old business sense is breaking the shackles and its good for those who can accept this as they know that it can help. But for the others it might take some time as its not everyday a businessman changes and so does the Government.

Extreme steps are required to be taken from the points of Governments if it needs to help the SMEs overcome their most major issues like proper infrastructure and opportunities for growth. Problems like electricity and logistics have to be taken into serious consideration and handed out to the industrial areas where the conditions are paralyzing.

Long power-cuts don’t help the productivity and the growth as the operator has to search and invest in other options, which forces the financial scales to tip. Social amendments like proper roads are also virtually non-existent in these areas, which again hampers logistics and transportations, charges and tolls inclusive nothing seems like a breather for these SMEs and their operators.

Until and unless the Government takes actions the conditions of the SMEs will always remain poor and in the long run, will put a hurdle in the path of the rising Indian economy.