Indian Sme Sector And The Environment
While SMEs have varying definitions in different countries, their characteristics are similar. Often these firms come into existence because of some particular expertise of the owner and are run single-handedly by them. Moreover, owners have low formal business experience (Deloitte, 2008). In this study the definition employed is from the 2006 Micro Small and Medium Enterprises Development Act (MSMED) of India. This defines and classifies SMEs on their investments in plant and machinery into micro, small and medium enterprises (Ministry of MSME, 2012).
Without being modest, the Indian SME sector is huge. An estimated 44.7 million units spread across a country of about 3.2 million square kilometres, inhabited by about 1.2 billion people living in 28 different states. They are significant contributors to employment, export earnings and the GDP. Their presence is a precondition for large industry, to which they serve as suppliers. This sector contributes to about 8% of the GDP, 45% of the manufactured output and 40% of exports (Special Task Force, 2010). Their sheer number alone makes offers a huge potential for improving the environment.