Role of SMEs in Manufacturing Firms

Small and Medium Enterprises are also known as SMEs. These play a vital role in manufacturing industries. Almost 17% of the Indian economy’s GDP is by the contribution of these SMEs and offers employment for over 60 million people. Manufacturing industry has the second largest workforce after agriculture in India. Economic growth is seen with the increase in Small and Medium Enterprises. As compared to service sector, the SMEs are more concentrated towards manufacturing industry.
SME contribution
Photo source: Linkedin
Small and Medium Enterprises contribute towards 45% of the country’s industrial output and nearly 40% of the total exports. Also 90% of the nation’s quantum of units is contributed by SME in the manufacturing sector. This level of support helps industrial bodies to have increased focus. There are lot of policymakers and associations in India for the development of SMEs. 

Here are some of the SMEs roles in manufacturing firms:

This will advise and help Government in policy making, formulation and development of manufacturing SME sector
Extended facilities will be offered for modernization, technology upgradation, infrastructure and quality improvement
Through skill upgradation and training human resources development is easier for manufacturing firms
Economic information services will be made available
Helps in close liaison with Planning Commission, Central Ministries,  Financial Institutions, State Governments  and other Organizations for the country’s development
Co-ordinates programmes and policies for the development of large scale manufacturing industries
Assistance or Consultancy to any prospective business and existing entrepreneurs
Preparation of District Industrial Potential and State Industrial Profiles Surveys
Preparation or upgradation of Project Profiles
Motivational Campaigns
Entrepreneurship Development Programmes
Production Index
Skill Development Programmes
Management Development Programmes
Energy Conservation
Ancillary Development
Export Promotion
Intensive Technical Assistance
Common Facility Workshop or Lab

SME industry
Photo Source: Linkedin
Development of SMEs directly has an impact on the manufacturing industry. Everything ranging from raw materials to spare parts for manufacturing units is offered by these SMEs. Though at the end of the day just the manufacturing company’s brand is out in the world, there are lots of efforts put through these small and medium enterprises. SMEs are the major contributors for manufacturing firms especially in developing countries like India. Though in the statics pictures these SMEs do not come into play, they are the incubators for many well recognized manufacturing firms. By being the backbone of manufacturing firm, these SMEs will offers every essentials required for manufacturing products. The firm at the end will involve its assembling function with right proportion of raw material usage to deliver the ultimate product to end users.
SME size
Photo Source: Linkedin

While manufacturing companies are supported on one side, equal importance and attention should be offered for the development of SMEs all over the country. There is definitely a need to look on the SMEs from both micro and macro viewpoint to understand their actual contribution to the country. To conclude, SMEs are strong supporters of economic growth and development. Also it is essential to keep in mind; the strength of SMEs is not their numbers but the contribution to manufacturing firms. Make use of websites such as SolutionBuggy to get advice and assistance from industrial experts and consultants for any SME related concerns.
Register at SolutionBuggy to find manufacturing consultant / experts in quick time and get your projects done. 

SolutionBuggy is an exclusive and dedicated platform for the Manufacturing Sector in India. It seamlessly bridges the gap between the industrial sector and professionals for on-demand consultation and services including projects. It connects SMEs and Large Scaled Industries with Industrial Consultants/ Experts and Industrial Product Suppliers over the internet for collaboration and success.

It is an integrated platform wherein industries can share their issues/ problems and post requirements; consultants/ experts can showcase their capabilities and offer services and solutions and suppliers can list their products to match the industry requirements.

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About the Author: Arjun N

Founder of SolutionBuggy who has about 11+ years of experience in manufacturing industries. An entrepreneur with astute sales and marketing skills.

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