1. SME Small & Medium Scale Enterprise www.tendersinfo.com

2. MICRO, Medium & SmALL Scale Enterprise: SME finance is the funding of small and medium-sized enterprises and represents a major function of the general business finance market in which capital for different types of firms are supplied, acquired, and coasted or priced. Capital is supplied through the business finance market in the form of bank loans and overdrafts; leasing and hire-purchase arrangements; equity and asset-based finance such as factoring and invoice discounting.

3. www.tendersinfo.com Micro Enterprises Medium Scale Enterprises Small Scale Enterprises SMESME

4. www.tendersinfo.com Micro Scale Enterprise: Small-scale enterprise is a business that employs a small number of workers and does not have a high volume of sales. Such enterprises are generally privately owned and operated sole proprietorships, corporations or partnerships. Micro-scale enterprise is a business that employs a small number of workers Not more than 25,00,000 (Rupees Twenty Five Lakhs only). Medium Scale Enterprise:

5. www.tendersinfo.com SMALL Scale Enterprise: A medium enterprise is an enterprise where the investment in plant and machinery is more than Rs.5 crore but does not exceed Rs.10 crore.

6. www.tendersinfo.com Production and Investment in SMEs The total production of the SMEs showed a phenomenal growth in FY07 as compared to the previous year. The production at current prices experienced a growth rate of around 18% against 15.8% in the previous year, thereby raising its share to India's GDP up to15.5% during the year. The SME sector has also registered a consistently higher growth rate than the overall manufacturing sector. In fact, it plays a dual role since the output produced by SMEs is not only about final consumption but also a source of capital goods in the form of inputs to heavy industries.

7. www.tendersinfo.com STRENGTH AND WEAKNESSES OF SMEs STRENGTH: Flexibility : Small and Medium Enterprises can easily absorb new innovation and adapt new method. The cost of changing the existing system is also relatively less. Owner management : In Small and Medium Enterprises owner management is a possibility, which ensures quick decision making. This ensures speed and reduces redtapism.

8. www.tendersinfo.com STRENGTH AND WEAKNESSES OF SME’s WEAKNESS: Lack of Financial Strength : The Small and Mediunor brand image and hence mobilizing capital through other sources is a challenge m Enterprises depend largely on banking finance. They don’t have corporate image. Lack of Industrial Work Culture : Labors give more weight-age to their personal work and don‟t maintain regularity, discipline in reporting on time. Getting and continuing with trained workers and satisfying them is difficult.

9. www.tendersinfo.com Typical Barriers for SME to access Public Procurement Large Contract volumes and broad capabilities required Over- emphasis on price and costly industry standards and certifications Insufficient access to information about opportunities Lack of knowledge about procedures Limited tendering skills and experience Lack of time to prepare bids Little dialogue with procurer and feedback Late payments

10. www.tendersinfo.com Channels for SME’s participation However, SMEs may also take part in the delivery of public contracts through other channels: 1.as member (but not leader) of a consortium or other joint bid arrangement 2. as a subcontractor 3. as a generic supplier not named as subcontractor

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