Small and Medium Enterprises (SMEs) form the backbone of any economy, even the most developed ones. Studies indicate that over 90% of the companies in the US have less than 50 employees and more than 50% of exports from the US are done by companies with less than 20 employees.
In India, Micro, Small and Medium Enterprises (MSMEs) constitute one of the most employment-intensive segments of the economy, contributing significantly to the manufacturing output and national exports.
It is estimated that this sector accounts for about 45% of the manufacturing output and 40% of the total exports of the country. There are several steps that the Government can take to encourage entrepreneurship and the growth of such ventures, especially by providing access to capital.