Pune SMEs are Inclined to Utilize Technology But Lack the Know-How

“Over the past few years, our nation has been progressing at a healthy rate of around 8-9 percent. The market was a bit sluggish during the period of downturn, but SMEs involvement in the Indian market is immense,” begins Dr. Sardeshmukh. In the preceding two years Pune witnessed a growth rate of 33 percent, while expecting 40 percent income growth in the next couple of years. The total employment in SMEs amounts to approximately 4.17 lacs. The IT section is observing an augmentation of 48 percent and is foreseeing a standard income growth of 52 percent in the coming two years. The growth of engineering and mechanical units are also quite impressive: while 20 percent of the companies have shown more than 40 percent revenue growth in the last two to three years, 32 percent companies expect more than 40 percent revenue growth in the next couple of years.
The business challenges
In spite of these developments and expansions, SMEs are facing grave hurdles like the pressure of worldwide slowdown. There has been a reduction in demand and support from creditors that has cramped the export market. “Unlike large companies, these units have resource, capital & skill constraints and cost inefficiencies. Therefore in times like this it becomes more difficult to invest in latest technologies or plan for expansion,” says Dr. Sardeshmukh.
The major challenges are the plethora of government approvals and sanctions required to start a unit. It also takes considerable time for the entrepreneur to comply with all the multiple statues. Availability of credit to a totally new, first generation entrepreneur becomes a problem.

Dr. Ananat Sardeshmukh Director General, MCCIA

Tackling the hurdles
MCCIA have been representing these problems to the government. By constant follow ups they try to engage with the concerned government department and try to get some solution on these problems. MCCIA also supports new entrepreneurs and helps them resolve their issues.

Key activities of the association
MCCIA represents industry trade and business on the different government platforms. They indulge in a dialogue with the government and its departments to seek solutions to the problems faced by the industry. “We take up proactively certain issues which need the attention of the government and which would help the industry. Our organization helps the members to network with different companies from various countries, while organizing interactive sessions for our members with the heads of different government departments,” says Dr. Sardeshmukh. “We do advocacy on behalf of the industry and organize conferences, seminars, and training programs on different subjects which are of interest to the industry,” he adds.
Building business through Ministry of MSMEs
For the past few years, the ministry of MSMEs has come up with many schemes and some of them are good. They are trying to resolve the problems of the MSME segment and must ensure that the necessary reforms are carried out immediately to guarantee the success of Make in India, where MSMEs can play a vital role. The government should come out with reforms including labor reforms at the earliest.
Role of IT and its awareness
The IT usage is fairly good in MCCIA and there is huge level of awareness for it, well above 70 percent. The organization is having a very active IT committee that organizes many imperative events on the application of IT. “In the future we want to move for more enhanced IT enabled services,” concludes Dr. Sardeshmukh.