Role of Government Schemes in the Growth of SMES with Special Reference to Bihar

Abstract

A quiet revolution is taking place in India. The significance of Small and Medium Enterprises (SMEs) in the Indian Economy is inevitable as the Indian economy has been boosted greatly by the SME sector. Small and medium-sized businesses, which number over 63 million and are dispersed throughout the nation, helped around 40% of the overall exports and 30% of the GDP of India (6.11 % of GDP comes from manufacturing and 24.633 % from services, respectively). It also creates a lot of employment, and export prospects and also contributes to the industrialization of rural areas at the lowest possible capital cost as compared to large-scale businesses. Additionally, they produce one-third of the nation’s manufacturing output. Although MSMEs have made a phenomenal contribution to the expansion of the Indian economy, they are also under tremendous pressure to maintain their competitiveness in a highly globalized world. One of the primary issues SMEs confront is the absence of timely and adequate financing facilities. The two main factors hindering the expansion and development of SMEs are finance and marketing. Through this research paper, an endeavour will be made to present the analysis and interpretation of problems related to finance of SMEs. The present research article has been divided into several different sub-topics like introduction, literature review, research methodology, objectives and finally conclusion findings and suggestions. It also deals with identifying the different Government initiatives and their role in the development of SMEs. Further, an attempt have been made to find out the grievance and give some important suggestions for improving them.