Are you ready

If my 21 year old child or my 18 year old best friend were to ask me how they know they are married for marriage, I would not know what to say. I would probably talk about having the â€Å"right age† which to some can be early, but to others it can be a long time. I would explain the consequences of marrying early such as divorce. I would explain that marriage is not a game and that it should be taken seriously as it is a lifelong commitment, sure there are times where people go through divorce but you eve to live with that person every day.That gets me into my next point: the right spouse. If you are to marry, it should be with the person you are most comfortable with. This person should make you feel good when you are together. They should entertain you and put a smile on your face when you most need it. The person should make you feel like you are around your best friend whom you can confess your secrets and lend you a helping. The other person should help build you up and help you reach your personal goals.You should not feel like you are tied down to someone and that they are baggage. Another thing you should consider is If you want to settle down. To my child I would agree with their decision on getting married because they are older and have somewhat of a plan for their future, and are wiser in making their decision. As for my 18 year old friend, I would give her the advice to maybe wait a little longer. They are young and should go out into the world and explore all the different things you can do as a single person.I would also tell my best friend that they are younger and so their decisions are not set In stone. I would give them both this statement: â€Å"Are you ready to settle down†. Marriage will become your priority and you will not have time for many things Like going out with friends especially if you plan to bring children Into your home. My last advice for them would be to sit down and think If they see themselves settles with a family and giving up their life of leisure that they have now.

To What Extent Was Cavour the Architect of the Italian Unification?

To what extent is it fair to refer to Cavour as the architect of the Italian Unification? After the failures of the 1848 revolution, Count Camillo Benso Di Cavour stepped in as the Prime Minister of Piedmont as the state was considered to be agitation concentration for those who still aimed and fought for the independence and unison of Italy. His liberal leadership philosophies enabled him to contribute in the movement towards the Italian Unification. However, is it fair to consider him an Italian Nationalist who always worked with his eyes on a unitary state?Cavour certainly aimed to get rid of Austrian interference in Italy so that Piedmont would grow into the Italian leading state. To accomplish this goal, he had to modernize Piedmont and extend its influence. Yet, he was aware that success would only be achieved by gaining foreign aid as Piedmont itself lacked strength to fight Austria alone. An opportunity to ally and get support from other nations rose during the Crimean War. P iedmont took the French and British sides on a war against Russia, which got defeated in 1856.As well as gaining the sympathy of France and Britain, Piedmont got the chance to attend the Paris Peace Conference where Cavour had the opportunity to share his intentions on ending with all Austrian domination over Italy. Although his plans were not much acclaimed, he did establish friendly relations with the French Emperor, Napoleon III. The two men met at Plombieres on July 20th and an agreement was made stating that if Austria attacked Piedmont, France would send in troops to help the fighting in return for the lands of Nice and Savoy.According to the historian Mac Smith, â€Å"Britain however, mistrusted Cavour and never planned war against Russia†. But still, with the French support, Cavour now tempted Austria into war, and when an ultimatum was issued, he rejected it declaring war. Austria was defeated provoking turbulences and commotions throughout Italy. Napoleon, however, was surprised by the rate at which events were moving and concluded an armistice with Austria causing Cavour to resign, as without France, Piedmont had to hope to grow.Still, the revolutionary movements in Italy while Cavour was still in power had motivated people from Tuscany, Parma, Modena and parts of the Papal States who were calling for annexation to Piedmont. Cavour came straight back to power in 1860 offering Napoleon the states of Nice and Savoy in return for the states of Central Italy. Some historians agree that at this point Cavour even hindered the Unification process as by giving Italian states away to France he was breaking down territorial integrity.Napoleon held a plebiscite and a devastating number of voters wished for the unification to the Piedmontese-Sardinian Kingdom. At this point, Cavour had reached all he aimed for. Piedmont was now a strong constitutional monarchy, which acted as a leader over the other Italian Sates. Through war, Cavour aimed to gain nation al glory only and his idea of foreign assistance never had the intention to help Italy achieve unification, it only meant to empower Piedmont. He was able to initiate the economic transformation of the state, enlarge the merchant fleet, treble foreign trade and develop the railway network.Cavour also established a political partnership, the Cannubio, in which he was able to resist pressure from the clerical right and the revolutionary left as he had his own centre-right party and Ratzzi’s centre-left group. This indicates that he that he focused on methods to modernize and develop Piedmont, and only Piedmont. He was satisfied with what he had achieved and had no intention to expand his kingdom into the southern states. He thought that by joining Naples and Sicily he would be taking the unification idea too further away and that it would provoke foreign opposition. The historian D.Beales says, â€Å"Cavour never talked of Unification but Piedmontese Domination† and LCB Seaman agrees when he states: â€Å"All that can be safely said is that Cavour wanted to get as much as could reasonably be obtained (for Piedmont), but no more†. Later in 1860, a new Italian figure appears. Giuseppe Garibaldi, an Italian Patriot, who had been a republican under the power of Giuseppe Mazzini in 1831, steps in. He had always been very determined about uniting Italy and had spent his entire life fighting for Austrian expulsion off Italy. A contrasting figure, with its ambitions set very clear, when compared to Cavour.Garibaldi was passionate for his country and wanted to make it all into one. When a revolution broke out it Sicily, he saw the opportunity to assist it. He soon took over the capital and prepared to attack the mainland. Garibaldi entered through Messina, struck north for Naples and made plans to enter Rome. Cavour immediately sent troops south in order to prevent Garibaldi from entering Rome, as it could be a great threat to incite war with France. The fact that Cavour did not support Garibaldi’s views and aims suggests that he undoubtedly did not want the whole unification of Italy.Cavour had no sympathy for Garibaldi, as he believed he was taking the idea of unification to another level and even ordered his arrest. Cavour made it very clear that he concentrated on the affairs of Northern Italy only and did not want the Southern part to join in. The Southern Italian states, however, demanded to unify with Piedmont and Cavour held a plebiscite. A massive majority was in favour of annexation to Piedmont and Garibaldi was forced to hand in over Sicily and Naples to Victor Emmanuel II who was than proclaimed King of Italy. Later in 1870, a plebiscite was held at Rome, which was also united to Italy.The Italian Unification was never under Cavour’s policy. The fact that the Italians aimed to unify altogether made them want to unify with Piedmont beforehand as they saw it as the first step to Unification. Cavourâ€⠄¢s intention to simply achieve Piedmontization failed due to the favourable factors that made the Italian Unification so successful. It is evident that Cavour was not the architect of the Italian Unification as he even tried to hinder the process. If he had not tried to stop Garibaldi in 1860 when he tried invading Rome, the unification process might had been completed before 1870.The historian LCB Seaman says that â€Å"For him (Cavour) the idea was tainted with radicalism, and his diplomat’s sense of realities told him there were too many insurmountable obstacles in the way†. Cavour did however, to a certain extent, enable the Italian Unification, as he was the one who began fighting for it (eventhough for him it only meant Piedmontese unification). He opened the door for Garibaldi. Without him, Garibaldi would have not been able to take over Sicily and move to the mainland so easily.Cavour was able to do what Mazzini couldn’t, he was able to reach every Ital ian and motivate them with the idea of unification. However, his intentions of unifications were very limited and the people of Italy wanted more than what he proposed. When Garibaldi stepped in, he knew he had massive support as a result of what Cavour had originally suggested. We can, therefore, say that Cavour enabled and contributed to the Italian Unification, but it would a falsity to refer to him as the Architect of the Italian Unification as he made it very clear that his intentions were never to reach this point.

Is Money the Most Important Thing? Essay

Nowadays, we are living in a world where everything turns around money and luxury. People do not realize that we can find more things which are more important for our lives and happiness. Some years ago, other important things were to spend quality time with the family, talk to each other about important thing in order to be always together and be informed about what is happening to the most important people in the society: your family. To different people money is important in many ways. Money is used to do a lot, you use it to buy a house so you have somewhere to live instead of living under a bridge, you use it to keep your car running properly, and without money a lot of people wouldn’t be happy. Without money people cannot live healthy. You need money to buy food, clothing, and personal hygiene products. To me money is less important as long as I have enough to get food for my family, a roof over my head, clothing for my family and myself, power to my house, and money to ride the bus. I am completely happy and that is what is important about money to me. see more:muet essay It would be nice to have some extra here and there but as long as my family and I can survive that is all that matter. How would you pay your bills if you didn’t have money? How would sick children get the help they need without money? Both of these questions are questions that have been a big deal in my life. The answer to each is you would be able to. Even if you didn’t have money and you needed assistant – that still involves someone donating the money. Money is an important aspect to everyone in this stuff called life. Then again to other people money might be important in other ways. It all depends on who we are talking about when we ask the question â€Å"How important is money?† Without money we wouldn’t be able to go to school and prepare for life or get college degrees and further our educations. We wouldn’t be able to pay for medications that help heal us of any diseases or pain. I do subscribe to the notion that money isn’t everything but I also believe that it is a major, critical facet of life today. Some people would like to have money, not to be a rich  person, but to have the minimum things to live worthily. Even if money is important to have a good life and without it we cannot do anything, it is not the most important thing. There are other characteristics that are more important in people, such as, what other people are inside themselves. Also, the idea of getting power because of having money is an actual problem in our societies, because many people grow up with that idea, and the more money you have, the more money you want to get. This action creates selfish people who think that all their problems can be solved thanks to money but in the real life, things are very far from this concept of life. People from real life have to fight for getting things, for being successful and for being happy. So it is important to teach people while they are growing up the real value of the things that are around themselves and how they can face money problems and the main meaning of this overvalued component in the present world. None can deny the importance of money in life. However, whether or not it is actually the only thing people are interested in today is much of controversy. Some people believe that money ca n buy everything when the others assert that it cannot. From my point of view, there are a lot of achievements rather than money although I can live without it. It seems to be meaningless for me to come in for a well-to-do life without endeavor for any reason. Perhaps, for me, money is not able to buy happiness. Not only has the value of money changed, but also its importance. The importance of money has become so essential for life, that you could not survive without it. You could not even buy something to eat. You would end up being a poor homeless person. Even if you try harmonizing with the nature to survive, it would be almost impossible nowadays, except if you are living in a tribe. Tribes have learned to live naturally and have adapted to the nature, while industrial countries have invented artificial stuff for everything. Money is one of the most important things in our lives. Even if we haven’t noticed yet, living without it would be literally inconceivable. Money is very important because of its value in daily life. Without money, we do not have accommodation, food, and clothes which are considered the basic necessities. In most developing countries, children cannot go to school when their parents do not have money. They have to do manual works in bad conditions and university is definitely a far-away dream. Money seems to be the most important issue for those. For those of the middle class, money  gives a comfortable life. The most important advantage of being rich is that your health will be protected well when you have a lot of money. It is true for every social system. A millionaire can pay a lot of money for the best hospital, best doctor and best technology while a poor unemployed woman mainly depend on social subsidies with cheapest medicines. If you do not have enough money, please wait without any requirements. Life has never been equal, particularly between the rich and the poor in the society. Money has become a very crucial aspect of living. It allows us to provide ourselves with the basic needs of life as well as forcing us to make realistic choices and place priority on our needs before our wants. But money has changed society a lot. The people who do not make too much, are not t oo happy. However, those who have money are often unhappy. They can never get enough. Everything that they have needs to be updated and when they get the item it’s already old so they end up replacing it. For this reason the rich never get to sit back and enjoy what they have. They are too busy buying. For most people in our modern world, money is the first thing, and sometimes the only thing that measures success in their life. Money can buy power. Money can buy fame. Money can buy time. Sometimes money can even buy a life. Thus money has become the first common goal for everybody. However, there is something else that can be the measurement of success in life. For example, the common goal in people’s life is to be peaceful and happy. It might be having a warm family and children, having lots of friends or maybe just having someone who truly loves you. Being the richest man in the world does not mean you are the happiest man in the world, although money can buy you happiness sometimes, but not always. If we could all appreciat e the way life is, the fun, and the beauty I think the world would be better. If people weren’t power hungry maybe we’d have a lesser demand for money. Those people who is money hungry and power hungry need to relax. Money can’t buy you happiness. These individuals need to understand that.

Chemistry Paper Essay Example | Topics and Well Written Essays - 250 words

Chemistry Paper - Essay Example The treaty had over 300 stations that were used as sniffers of the radionuclides. It also had the ability to listen to the lowest frequencies, and had the ability to record the tremors. The main purpose of this treaty was to exercise the chemistry principle that went be the terms safer chemistry for accident prevention. The main reason for this concept or principle was to exercise all activities that were environment friendly. The establishment of this treaty led to more emphasis on environment consciousness by all countries including the super powers like the United States. The international monetary system supports the CTBT process with over 1 billion dollars’ worth of funds. The funding has ensured that the treaty is implemented successfully, which is attributable to the reduction of activities involving testing of explosives. The plan was set up that would enable institutions and some individuals to work with CTBT was a good step as this will enable them to learn more from each other hence making sure the environment friendly activities are exercised fully. Most of these institutions handle chemical substances. Working with CTBT will ensure proper use and exposure of these chemicals. Clery, D. (2015). Plundering a nuclear test ban treasure-trove. News.sciencemag.org. Retrieved 23 June 2015, from

Legal Mari Guiana Essay Example | Topics and Well Written Essays - 1000 words

Legal Mari Guiana - Essay Example On the other hand, some states such as California, Hawaii, Washington and New Jersey among others have passed laws to allow for the citizens to grow and use marijuana for medical purposes. Countries such as Mexico, Uruguay, Netherlands and Argentina among others have partially legalized the use of Marijuana whereby citizens are allowed to consume and possess certain amounts of the drug for recreational purposes (Bakalar, 2007). This paper is a critical evaluation of why or why not marijuana should be legalized. Marijuana should be legalized as a way of creating revenues for the government, in terms of taxation. Failing to do so encourages illegal trade whereby scrupulous dealers form organizations, through which the product is traded in secrecy and in high prices. These illegal drug dealers continue to enrich themselves and this motivates them and makes it affordable for them to operate and finance other illegal businesses such as gun trade, human trafficking among others, which include criminal activities such as gang violence. Critics in this debate may have forgotten the impact the ban on alcohol sale and use in the US in the 1920s had on the society but it may be important to remind them that it resulted to widespread illegal trade of the product and the emergence of powerful groups, mafia, which took advantage of the inability of the government to enforce the law (Rosenthal, 2003). In fact, it is believed that this formed the basis of the formation of drug lordship in the country as t hese cartels had already been accustomed to the lucrative trade and hence had to venture into other similar businesses once the ban was lifted and alcohol became accessible in the general market. In this context, criminal gangs compete over markets whereby one gang claims ownership of a certain territory and whenever any other gang member crosses this territory in search of customers, violence erupts leading to

Theology of Missions Research Paper Example | Topics and Well Written Essays - 1500 words

Theology of Missions - Research Paper Example According to the genesis 45 and 50, Joseph was never keen to revenge, rather he was swift to delivery him people from trouble. This is the making of any missionary sent by God in the history of the bible. Joseph confessed that what his brothers intended to evil, God intended for good to deliver the children of Israel from the danger of famine. This means that Joseph was commissioned by God to save the children1. The Old Testament records that for as long as Joseph was the prime minister, the children of Israel lived in Goshen, and had quality life. The role of Moses is crucial in the role of missions as accounted for in the holy bible. Prophet Moses was a leader sent by God to carry out an expansive mission to deliver the children of Israel from Egypt. Moses became the voice of God to the Jewish people. Moses had a special purpose to counter the Egyptian gods and the tyranny of pharaoh. According to exodus chapter 12, God clearly sent Moses. This indicates that Moses was a missionary acting to represent the purposes of God. His was also to deliver a living God to Israelites in Egypt. Moses was explicit to the Egyptian authority on who sent him and His mission. According to Deuteronomy, Moses’ exhortatory appeal to the children of Israel stressed on the need to obey God and the divine law. New Testament According to Mathew 28, from verse 20 Jesus commissioned His disciples to preach the gospel. This text indicates the desire of the Lord Jesus to have His kingdom spread by the disciples and those who believe in His words. Jesus explained to role of the trinity in the great commission. Jesus commissioned disciples to make other disciples around the world. The text exposes a passionate desire for Jesus to have a generation believers to carry out His mission in His physical absentia. The disciples were empowered and legally duty bound to win souls to the kingdom of God. This was God’s plan of salvation. Act1:8 explains that the desire of Jesus to have the kingdom spread from Jerusalem to Judea, Samarian and the uttermost parts of the earth. This is a New Testament text that relates to mission. Jesus explained that His sole desire was to have the world evangelized through mission work. The text explained that Jesus was focused on winning souls across the world through mission initiatives. Later, in an encounter with Saul, Jesus said he was a chosen vessel to bear His name. How the nature of God relates to mission theology It is evidently vivid the nature of God related to missions. The house of Israel was termed as the people of God. Therefore, they were the object of God’s lessons to other nations. God spoke and explicitly intended the nations to know His might by considering His dealings with Israel2. According to Deuteronomy chapter 8, God had promised that he would lift the nation of Israel above all other nations on the face of the earth. In the sight of gentile nations, God wanted to be seen as both living and Holy, ( Isaiah 61:9-11). The nature of God is revealed to the non-believers by the quality of life seen in those who are called by His Name. This is the reason God offered both blessings for obedience and curses for disobedience. The blessings indicated the desire for God to reveal His might through making the nation mighty and

Soviet Union Invasion of Afghanistan Research Paper

Soviet Union Invasion of Afghanistan - Research Paper Example The paper describes also the aftermaths of the war. With the collaboration of America-Pakistan against the USSR, Afghanistan saw an emergence of ongoing guerrilla warfare. The United states, through Pakistan, funded the Afghan insurgents and Mujahideen, financing them with weapons as well as money. The Soviets suffered enormously through the hands of this mujhahideen. The soviets had to pay a huge price because of this ferocious resistance as it turned out to be disastrous in terms of military, financially as well as diplomatically. In 1988, the Geneva accords were signed and it included in it a time table which ensured a full Soviet withdrawal from Afghanistan in 1989. Estimates of the Afghan death vary from 1 million to around 2 million. 15000 soviet soldiers were also injured and killed in the war. Around 10 million Afghans fled to Pakistan as well as Iran. Another 2 million Afghan people were displaced within the country. The Aerial bombing by the soviets destroyed important stru ctures like irrigation canals which were extremely crucial to the agriculture in and arid climate. Most of the farmers who decided to stay in Afghanistan had their fields and irrigation systems bombed and live stocks destroyed. The Landmines alone killed 25000 Afghans during the war and another 10-15 million land mines have been left scattered throughout the country. Even today, Afghan people die or are critically injured as a result of these land mines. A year after the withdrawal of troops from Afghanistan, the USSR collapsed. Similarities between the USSR and US war in Afghanistan: Of course, there are many similarities between the Soviet strategies and policies of their Afghan war of 1979 and the American tactics in Afghanistan since 2001. In 1980s, the USSR was failing in Afghanistan even after a new leadership was emerging the capital of the Soviet Union. The new leadership started to make new strategic changes in order to rescue

Personal journal Essay Example | Topics and Well Written Essays - 250 words - 3

Personal journal - Essay Example Actually, to come think of it, I don’t really know what drives people to meditate but I guess it must be life’s pressures and stress. But looking at some people I know who meditate, I am not sure if it works. The first meditation site I opened was about guided-meditation techniques. I decided to be guided to meditate using what author had recommended. There was some music that I was asked to download. Upon playing it, a nice woman’s voice came up. There was a sitar playing at the background, sounds of water flowing in the river. I must tell you that I a bit relaxed by the music. Then the woman began to guide me. She asked me to lie down on an easy chair and concentrate on my breath and this is where my problem began. No matter how hard I tried I could not concentrate on my breath, something or the other came to my mind. Contrary to what she was saying, there was no sensation in my legs. All I could think of was school assignments, a friend’s party coming u p or my pocket money. It actually stressed me more than destressing, guess meditation is not my cup of tea.

Write an annotation entry consisting of a Citation, a brief Summary, Essay - 1

Write an annotation entry consisting of a Citation, a brief Summary, and a short paragraph Evaluation of the text below - Essay Example According to Melissa, Obama does bear responsibility because he is a black in whom the African-American’s triumph is embodied. Therefore, the successes that are associated with his election can be accomplished if the blacks come out to protest the discrimination they are still subjected to by the whites. Indeed, this article can be a very invaluable resource. First, it was written by a reputable scholar who is so credible and has authored lots of books and articles and made imminent contributions to the field of journalism. Besides, it provides a lot of detailed information about the cases of alleged racism by the US police in different parts of the country. Indeed, it sensitizes me about the plight of the African-Americans who, despite constantly fighting race-based discrimination, still suffer in the hands of law enforcers. At the same time, the manner in which the author associates President Obama is challenging and thought-provoking. Since it provides all the necessary information about the plight of the blacks, the article becomes authoritative, valid and enjoyable to read. After all, the credibility of its author is not doubted at

Visit Paper on Religious Sites Essay Example | Topics and Well Written Essays - 1750 words

Visit Paper on Religious Sites - Essay Example The paper "Visit Paper on Religious Sites" gives a detailed information about the church. The scriptures that were read came from the Bible. The people attending the service without the bible were assisted with one. The provision of the Holy bible made it easy to follow along the service. The bible had no symbols on it. The church had a lot of images that were noticeable during the service. The sitting arrangement and the position of the pulpit were different from the one on musicians’ corner. The priest sat at the center of the church in front of the Isle. Behind the priest were elderly men and women who occasionally consulting with other officials. The ushers are charged with the responsibility of welcoming visitors and directing them to the vacant seats. Each bench has a number of hymns which appeared to belong to the church. Ushers were busy mopping the seats and placing the bibles and hymn books before the service began. A groups of leaders converged in the vestry where t he service was planned. The form of worship was engaging and entertaining. Different songs that worship God were sung. The pianist and other instrumentalists appeared to direct the congregation in playing the music. A group of young men were using displaying the events of the service through Laptop and projector. This meant that songs were displayed on a large screen in front of the congregation. As a result, the congregation was able to sing along. You could tell the extent of commitment through the observation.... The readings were also displayed on the screen through the electronic Bible. It was noticeable that the same readings existed in a small brochure given to the congregants upon entry. In the brochure, the name of the preacher was written and the theme of the topic. There were a number of brief singing sessions. The mode of worship demanded that people conduct deep thought through slow but rich music popularly called worship music. After worship long leader conducted the songs. Some people knelt, while others just sat on the seats. However, others remained standing. There were mummers across the congregation as some attempted to pray in soft but audible tones (Moore, 59). Initially, it was really weak but grew stronger am more prayers were made. Some people looked emotional and literary broke down. Others never seemed to have an idea what was happening. Many seemed to be praying through closing eyes and being in deep thought. All this happened simultaneously. After the session of praye r, a lead singer appeared to call people to attention through a song. The most of the congregation stopped praying and joined in singing the song (Armstrong, 41). Then a prayer was made in unison. The prayer appeared to be entirely dependent on the intercessor. He was not referring to any script but addressed some of the contemporary issues facing the society. The prayer was directed to God through Jesus Christ as a source of Help. At some point the congregation was asked to stand and recite the Apostles’ Creed. This is a piece of text which is perceived to be the cornerstone of the Christian faith. The devote members of the Christian faith were supposed to recite the proclamation of faith through the apostles creed. The preacher had a designated place while preaching. The doctrine

International Entrepreneurship Essay Example | Topics and Well Written Essays - 750 words - 1

International Entrepreneurship - Essay Example On the other hand, the government cannot implement certain regulations without involving the trade or professional association since the association affected will exert pressure on the government for omitting it from the formulation and implementation process. The formulation of the rule and policies by these two parties, the government and the trade/ professional associations, is influenced by international forces. This is because no single economy can operate in separation from other economies and fully sustain its citizens. The economy needs other economies to provide market for its surplus and provision of resources or inputs that are not found in it. No single economy has all the prerequisite resource for steady economic growth and development; thus the need for globalization. This globalization trend has forced changes in the existing institutions in order to continue utilizing the accompanying opportunities. Those institutions resistant to change or those that make inappropriate changes fail to adapt the posed challenges and thus endangered for collapse. This leaves the burden for the government to protect her economy industries. Because of numerous responsibilities facing the government, the professional and trade associations become handy. They mostly comprise of experienced and professional people who aid in thorough research, to provide the information required to formulate appropriate policies for the benefit of the country and industries therein. They propose the appropriate technology to be employed, the new markets to venture into and favorable trade agreements to be signed. The associations unite several organizations and entrepreneurs of the developing economy. They identify their needs and formulate strategies such as training and educational programs, which aid in the attainment of member goals and need satisfaction. They work together with the government in provision and improvement of the necessary infrastructure

Teams In Organizations Essay Example for Free

Teams In Organizations Essay Teams are groups of people who share a common purpose, who depend on each other to accomplish their purpose, develop relationships with each other and outsiders and eventually develop roles in the team. These teams can be intact work groups working for the same person, or can be from different functions or organizations. In these times of constant change, it is essential for teams and team members to understand their strengths and weaknesses. Effective teamwork can help a company deal with this ongoing change and can create an environment to find better ways to solve problems, resolve conflicts, and set goals, whether they be to provide the best possible service, to be the top sales district, or to plan exciting company events. Teams have an important place in our professional and personal lives. Working in teams is an inevitable life experience, even for people who prefer to work alone. Working on teams can normally prove very challenging with all of the variations in personalities, strengths, and weaknesses. An effective teamwork does not happen overnight; it takes a cooperative group of individuals and a talented leader. To avoid a stiff structure in an organization, management must learn to let people do their creative best and optimize their talent. An ideal organization consists of a team-oriented environment where people are being asked to work beyond their disciplines. Departments learn to work together, helping one another, as well as themselves, instead of behaving like rivals, only out for their personal advancement. Generally, there are three main characteristics for a team to be successful; they must share a common goal, each member must play their own particular role, and each member must be willing to make a few sacrifices (Hambrick, 1994). The most important aspect must be the common goal of the group. Even though the members of the team have different views, even though they come from different backgrounds, even if they have different ambitions, this common goal is what will unite and bind the group together. But this common goal is not enough; something more is needed: the role of the individual  team players. If the team is to truly be a success, each member will have to play his or her role properly. Conflict may arise due to specific individuals wanting more credit, power, or glory; however, that is when the importance of sacrifice becomes apparent. Each individual member has to be ready to give up something for the good of the whole team, because for a team to flourish and triumph, t he goal is greater than the individual (Hambrick, 1994). When a team works together with these three attributes, there is practically no limit to what they can accomplish. There are normally four stages that a group will have to go through before they become fully developed. They are: mutual acceptance, communication and decision-making, motivation and productivity, and control and organization (Moorehead Griffin, 285.) Each stage has its own unique features, but it is difficult to determine where one begins and one ends. There are no clear lines because one stage seems to blend into the next step. Mutual acceptance is the first step where each group member will share certain information about his or herself, in an effort to get to know the other team members. This information has almost nothing to do with the team goals; it is the members opportunity to learn something about one another. Once members begin to feel a little more comfortable together, they may attempt to discuss an overview of what they expect to accomplish within their group. They will begin to discover each others differences and similarities, their individual viewpoints on numerous concerns on relevant subject matters become apparent, and conversation about team goals and business become more prevalent. When the conversation starts to take on a more serious tone, the second stage of communication and decision-making has begun, possibly the most important stage in the process. Communication is an essential part in the development of a group culture. The types of communication structure determine leadership, roles and status within the group, group morale and cohesiveness, and it limits or enhances productivity (Hare, 1992). Different types of communication are needed for different tasks. If a groups goal is relatively simple, a centralized communication network in which interaction between members is limited tends to increase effectiveness. In a more complex environment, with a focus on  problem solving, a decentralized communication network would be more appropriate (Shaw, 1981). The choice of a communication network might be more effective if decision-making strategies are outlined in advance and if the urge to stabilize the structure too early is resisted, as there is considerable resistance to change once these structures are established. Awareness of these issues is usually low and it is one of the tasks of the group leader or facilitator to bring them to the attention of the group. Communication standards, as well as performance, are raised if the group has clear performance-oriented goals, an appropriate task strategy to accomplish those goals, and a clear set of established rules in order to tolerate inter-member conflicts and to promote feedback to ensure that information is properly interpreted and understood. When it becomes apparent that the group is united upon its goals and tasks, the third stage of motivation and productivity can begin. Motivation and productivity focus on the overall performance within the group. All groups, however, do not reach this stage. If it has been attained, their capacity, range, and depth of relations expand to true interdependence. Group members can work independently, in sub-groups, or as a total unit, while their roles and authorities dynamically adjust to the changing needs of both the group and the individual. Individual members have become self-assuring and the need for group approval has past; they are both highly task-oriented and highly people-motivated. The group has reached a level of unity, group identity is complete, morale is high, and loyalty is intense. There is a strong focus on both team cooperation and creativity. This stage places a high emphasis on problem solving and productively working towards the most optimal solutions to these problems. If a group is able to accomplish these tasks, they will move on to the final stage of control and organization (Moorehead Griff in, 287). The final stage of control and organization in group development involves the termination of task behaviors and the disengagement from group relationships. The group will work towards fully accomplishing all of their goals and tasks to the point of completion. A planned conclusion usually includes recognition for participation and achievements and an opportunity  for members to say their personal goodbyes. It may also create some apprehension from group members due to the relinquishing of control and giving up inclusion in the group. The most effective interventions throughout this stage are those that facilitate task termination and the process of disengaging oneself from the group. Members must prove to be flexible and able to adapt to whatever the next step is for the group, whether it be to transform into a mature group, or to disband altogether (Moorehead Griffin, 288). Work groups function to perform a particular task. In a work group, the task dimension is emphasized and group members pool their expertise to accomplish the task. Organizations may not realize that different groups will require different kinds of facilitation, meaning its roles, relationships, goals, functions, and capabilities. There are two main types of teams in the workplace: work unit teams and self managed teams (Parks Sanna, 1999). Work unit teams are where supervisors are retained with drastically altered roles, and employees are given much expanded responsibilities for day-to-day operations, while self managed teams are where managers and supervisors are largely eliminated and employees truly take charge. Work-unit teams and self-managed teams both shift traditional managerial and supervisory responsibilities for controlling performance and solving performance problems to employees. All employees are required to attend team meetings, work on performance improvement projects and participate in other team activities by virtue of their employment. Where these two types of teams differ is in respect to the effect of the teams on organizational structure and the role, or even existence, of managers and supervisors (Parks Sanna, 1999). The organizational chart with work-unit teams looks very much like that of a traditional organization, with perhaps some flattening of the traditional pyramid into fewer levels. Additionally, there may be no radical restructuring of the work process flow, at least initially. There is a much sharper definition of the units responsibilities and objectives, however. Work-unit team members develop a few key performance measures for the team that are linked back to company objectives and they help establish targets  for performance on these measures. Also, team members meet on a regular basis with their manager or supervisor to review performance on these measures, identify performance problems or areas needing improvement, and develop action plans or projects to solve performance problems they identify. Under work-unit teams, managers and supervisors may be reduced in number, but that position is not eliminated. They continue to perform traditional functions such as planning, budgeting, hiring, disciplining, and firing, although they may be required to seek greater employee input into these decisions. The team itself is responsible for the work groups performance. The manager or supervisors role is to provide the team with information and resources, facilitate team meetings, and coach employees in problem-solving efforts (Parks Sanna, 1999). Self-managed teams operate in a similar fashion to work-unit teams, but with employees assuming greatly expanded responsibilities. Additionally, the traditional organizational structure is drastically altered because divisions, departments, and sections drawn along functional lines may cease to exist; in its place are teams of five to fifteen employees. Each team has the responsibility, equipment, and other resources necessary to produce an entire product, deliver a service, or produce or deliver a major part of a product or service. Self-managed teams are structured to operate almost as small, independent business units. Where the work-unit team has a clearly defined set of performance objectives, the self-managed team has a mission to serve a customer or group of customers either internally or externally. Perhaps the most striking difference between self-managed teams and work-unit teams is the absence of managers and supervisors in the self-managed unit. Instead, employees in self-managed teams elect a team leader who facilitates team meetings and performs administrative functions for the team. Frequently, team leadership responsibilities rotate among team members so that eventually most, if not all, team members serve a term as team leader. Team members assume responsibility for monitoring performance and solving performance problems, planning, scheduling, budgeting, and hiring and discipline of team members. The few remaining formal managers in an organization composed of self-managed teams coordinate activities of the various teams, ensure that teams have the resources they require, advise the  teams on technical, operational, and human resource issues, and help resolve disputes that might occur within or between teams (Parks Sanna, 1999). The transition to a team-based high-performance organization is established on a basic set of six guiding principles. The first principle is to develop the support of top managers. Top managers need to learn as much as they can about the structure and management operating system of a high performance design and operating system before deciding whether or not they can support implementing a model. Without the understanding of top management and their support for a change to a team-based organization, high-performance is not possible (Wheelan, 1994). The second thing that needs to be done is to determine how a team-based organization can address company improvement needs. Organizations must identify the opportunities for improvement where teams can help with the performance in the organization. Without a defined need, there will be little or no serious motivation to establish the resources and changes required to install a high performance model (Wheelan, 1994). The third principle is to involve everyone within the organization so that they will feel a part of the surrounding changes. Since team-based high performance requires revising the organizations structure and operating system, everyone has a role to play in the transition. When senior management makes a commitment to convert to the new system, department managers, section heads, and employees all need to be involved, no one can afford to be left out. Employment groups who are not informed and involved in the process of change are likely to resist the tough changes that are needed. Calming everyones fears about change is a very important factor in making a successful transition (Wheelan, 1994). The fourth principle is to invest in establishing a learning organization. With technology and information driving change at an unprecedented pace, organizations need employees at all levels who are continually learning. Education and training must be seen as a top priority in high-performance workplaces, with a payoff in improved leadership, worker flexibility,  effectiveness, and improved product and service quality (Wheelan, 1994). The fifth principle is to measure and keep track of how the changes are taking place and the affects of the changes. Measurement is a core element of high-performance management. A measurement system must be developed and maintained to evaluate the team and company performance, and there must be a way to monitor employee feedback, as well. The improvement measures should be incorporated into team performance evaluations, promotions, and compensation plans, so as to emphasize the extreme importance of this step (Wheelan, 1994). The sixth and final principle is to get the necessary help to install a high-performance design. Teams and team-based organizations with self-managed teams are not new. Adequate information is documented and available to show that team-based operating systems consistently outperform traditional systems. The hiring of an experienced consulting and training firm to provide model design guidance, consultation, and training will reduce trial and error costs and help ensure a smooth transition and the achievement of the desired outcomes (Wheelan, 1994). Team-based high-performance involves management providing teams with the following five thing: identifying defined areas of responsibility where teams can be delegated some degree of management control, granting the authority to teams to make decisions about their groups work, providing teams with the resources and tools to continually improve their work, providing the training needed to install and maintain the new system, and providing the resources and education needed to enable employees to continually improve their job skills (Wheelan, 1994). While this sounds easy enough in practice, it is not. Most companies operate in certain well-established, traditional ways. Team-based high performance requires changes in virtually every arena of corporate life. Top management may not want to commit resources to prepare everyone for their new responsibilities. Managers, and sometimes workers, are reluctant to have decision-making authority shared between management  and employees. However, there is a new frontier available for executives interested in capturing the spirit and intellect of the total workforce for dramatic improvements in operating effectiveness. The experience of companies that are making the change to a high-performance workplace, and seeing an extraordinary return on their investment, provides compelling motivation to take the plunge. References Hambrick, D.C. (1994). Top Management Groups: A Conceptual Integration and Reconsideration of the Team Label. Research in Organizational Behaviour. Hare, A.P. (1992). Group, Teams and Social Interaction. Theories and Applications. New York: Praeger. Moorehead, Gregory, Griffin, Ricky W. (2001). Organizational Behavior: Managing People And Organizations. Boston: Houghton Mifflin Company. Parks, C.D. Sanna, L.J. (1999). Group Performance and Interaction. Boulder, Oxford: Westview Press. Shaw, M.E. (1981). Group Dynamics: The Psychology of Small Group Behaviour. New York: McGraw-Hill. Wheelan, S.A. (1994). Group Processes. A Developmental Perspective. Boston, MA: Allyn and Bacon.

Social Exclusion in Social Work

Social Exclusion in Social Work This aim of this essay is to discuss the role of the social worker in addressing social exclusion and discrimination and the impact that such issues have on individuals, groups and communities. I am also going to demonstrate my understanding of anti-oppressive practice and ethical issues that social workers face, particularly in the Welsh context. Accordingly, ever since the late 1980s there has been a rising understanding of the effect of oppression and discrimination on individuals, groups and communities (Thompson, 1997). More recently, anti-discriminatory practice has surfaced as a main focal point underpinning social work policy, theory and practice (Pierson, 2002). Hence, with the aim of carrying out their role constructively, social workers should develop and uphold an awareness of why anti-oppressive and anti-discriminatory practice standpoints are vital and the approach that they can take when dealing with discrimination, oppression and social exclusion. Wales, like other na tions, is merely an example of a multi-cultural society with various dissimilar aspects of diversity and personal experiences. Thus, gender, class, language, age, ethnic group, together with other social factors, collectively have an effect on a persons social identity, experience, and awareness of the world that they inhabit (Williams, 2007). With this in mind, discussing the effects of discrimination and social exclusion, and tackling matters of oppression, may provoke numerous difficulties for social work practitioners. Nevertheless, valuable practice tools have been developed so as to challenge inequalities and endorse social inclusion (Thompson 1997; Pierson 2002). Accordingly, it can be said that impartiality is fundamental to social equality. In this regard, persons and groups must believe that they are able to partake wholly in the community and be thought of as equal members. In situations where this is not the reality, individuals could be subjected to isolation, detachment, disadvantage and prejudice. In particular instances, this could cause generations of individuals living on the margins of society. Thus, the ideas of social exclusion and discrimination are very much in parallel. Societies lacking in equality where specific individuals or groups are discriminated against can cause exclusion. Similarly, social exclusion promotes inequality and discrimination (www.socialexclusion.gov.uk). The Social Exclusion Unit delineated social exclusion as what can occur when individuals, groups or communities experience a combination of concurrent difficulties such as unemployment, poor skills, low incomes, poor housing, high crime environments, ba d health and family breakdown (www.socialexclusion.gov.uk). Likewise, discrimination emerges when a person or group is treated unfavourably, when compared with others in similar circumstances, because of their age, sexual orientation, disability, racial or ethnic origin, religion or belief, or gender. (Adams, Dominelli and Payne, 1998). Accordingly, it can be said that socially excluded individuals or groups are incapable of playing a full part in the community due to an array of difficulties they are confronted with, such as unemployment, lack of skills, ill-health or inequality. Frequently, specific individuals or groups are more likely to encounter these difficulties. As an example, individuals that suffer from a disability or mental ill health come across apprehension and intolerance from other persons, often derived from erroneous beliefs about such conditions. Such stigma could not only intensify individual distress but could also inhibit the person from seeking necessary assi stance. Hence, such social exclusion and discrimination could obstruct access to services and resources such as housing, employment, parental rights, immigration, health care and access to justice (Sayce, 1998). These individuals or groups that are excluded from society have to conquer these obstacles to opportunities that other members of the community enjoy. It has been documented that Wales possesses some of the most disadvantaged communities throughout Europe (Williams, 2004). Moreover, the Assembly Government refers to regions of marked deprivation exemplified by dependence on benefits and a necessity for employment opportunities (National Assembly for Wales, 2009). In addition to inadequately salaried or lack of work, poor skills have also been noted as a vital cause of unemployment, economic inactivity and poverty for individuals, and in 2001, 20% of adults of working age in Wales had no qualifications (National Assembly for Wales, 2009). For 2008, the young adult (16-24) une mployment rates was 16%. Consequently, almost half of the individuals in Wales without work are under 25 (www.jrt.org.uk). Such lack of prospects underpins the probability of some individuals or groups being incapable of fully integrating into the community. Thus, those socially excluded can experience feelings of stress, poor health and isolation due to low living standards and limited access to services (National Assembly for Wales, 2009). Other members of society can encounter greater degrees of anxiety and reduced mobility due to reduced social unity and augmented concern for criminal activity (Pierson, 2002). Accordingly, the social worker has the crucial responsibility of making the quality of existence better for individuals, groups and communities and challenging the triggers of social exclusion and discrimination. Hence the role and task of the social worker is complex. The role ranges across empowerment, counselling, advocacy, partnership, needs assessment, care management and social control (Scourfield, Holland and Young, 2008). Social work practitioners should be dedicated to human rights and equality and strive to encourage and support individuals, groups and communities that experience the damaging consequences of social injustice. Thus, the social work profession promotes social change, problem-solving in human relationships, and the empowerment and liberation of people to enhance well-being. Utilising theories of human behaviour and social systems, social work intervenes at points where people interact with their environments. Principles of human rights and social justice are fundamental to social work (www.ifsw.org.uk). This indicates that social workers have a duty to confront discriminatory attitudes towards persons due to capability, age, ethnicity, gender, class, marital position, political beliefs, racial or other physical characteristics, or sexuality (www.ifsw.org.uk). Within their role, social workers should have a duty to work towards an inclusive society by confronting circumstances that promote social exclusion, oppression and/or hardship. Hence, Pierson (2002) has documented five extensive building blocks for social workers to employ in practice to effectively work with socially excluded individuals, groups and communities and ultimately promote social inclusion. The first building block encompasses the significance of concentrating on income and for the social worker to have a full understanding of the benefits system overall (Pierson, 2002: 42-47). The second building block encompasses the part played by networks jointly as a basis of reliable collective support for individuals, groups and communities and as a practical means for social workers (Pierson, 2002: 47-51). The third building block encompasses partnerships between citizens, groups, volunt ary, private and religious organisations and statutory services where holistic, coherent action can be carried out on the ground (Pierson, 2002: 51-56). The fourth building block encompasses several advantages in developing elevated levels of service user and neighbourhood participation in the community. For example, legislation such as the Children Act 1989, the NHS and Community Care Act of 1990 and the Disabled Persons Representation Act in 1996, required local authorities to consult closely with users when they undertake assessments and devise care plans, and in the follow-up reviews of how those plans are actually unfolding (Pierson 2002: 57). Also, proposals by Government, for example Quality Protects, New Deal for Communities and the Best Value framework necessitate citizen involvement (Pierson, 2002:57). Finally, the fifth building block encompasses the importance of the whole community and assisting resident ability through neighbourhood improvements. For example, involveme nt in community activities, childcare, looking after neighbours, credit unions and neighbourhood watch (Pierson 2002: 65). Moreover, in executing their role, social workers habitually face ethical issues when discovering challenging principles and obligations (Mattison, 2000). Hence, the principles or ethics of independence may be at variance with not only a responsibility of care, but also between the wellbeing for the person and the wellbeing of other members of society (Mattison, 2000). For this reason, it is crucial for social workers to carefully consider their own principles and practice. This is fundamental because even though frameworks like the professional code of ethics are made available to offer practical assistance, to a degree, using ones own discretion when making decisions is unavoidable (Mattison, 2000). Social workers must also confront ethical issues regarding confidentiality. Hence, social workers often make judgements as to whether it is deemed necessary to reveal confidential information to outside organisations without the individuals permission so as to protect society or comply with legal judgements or legislation. A further ethical issue is professional paternalism or beneficence, which means that social workers may have to make judgements about whether to place restrictions on individuals that engage in self-harming conduct, for example substance misuse or rejecting certain services (Clark, 1998). Moreover, it seems crucial to use an anti-oppressive approach when dealing with ethical issues. Hence, various fundamental principles underpinning anti-oppressive practice in Wales have been documented by Elaine Davies (1994). These include the following:Â   a service user has the right to decide which language to use with the Social Worker; individuals are able to communicate more effectively and contentedly in their preferred language; high-quality practice means offering service users an actual choice over language use; an all-embracing service of excellence in Wales means a bilingual service; and refusing this right is a way of oppressing an individual (Da vies, 1994: 60). In addition, particular sections of the Children Act 1989 place an obligation on agencies to take a childs language into consideration when assessing and providing services (Davies, 1994). The characteristics of the Act are influential with importance placed on partnership and consultation. Thus, it is stated that it is unfeasible to converse productively without using the preferred language of the child and family and their racial, cultural, religious and linguistic background must be taken into account (Davies, 1994). Moreover, Article 30 of the United Nations Convention on the Rights of the Child 1989 is comparable to the Children Act and declares that children who are members of an ethnic, religious or linguistic minority must not be deprived of the right to enjoy their culture, practice their religion, or use their language (cited in Welsh Assembly Government, 2004: 68). Therefore, every individual that converses in Welsh should be able to decide which language to use. Also, offering language choice provides the service user with appropriate power and an effective ability to speak. Effective social work practice also means undertaking assessments and providing services in the service users preferred language. Moreover, language appropriate provision should be considered under the scope of equal opportunities in the main, with the Welsh Language Act 1993 being a close comparative to other forms of legislation that advocate equality, such as, the Race Relations Act 1976 and the Human Rights Act 2000 (Scourfield, Holland and Young, 2008 ). Thus, it has been documented that language is not only a mode of communication; it is also a system by which an individual assembles their identity and their understanding of the world (Williams, 2007). Accordingly, social workers must strive to identify and respect diversity and to challenge inequalities and hardship (cited in Welsh Assembly Government, 2004: 14). To conclude, social work has the capacity to transform an individuals existence for the better due to the breadth of the role and the variety of its resources. Considerable improvements have been made by altering the way in which services are made available in Welsh communities. For example, social services in local government strive to safeguard adults who are vulnerable or at risk, promote social inclusion and support persons to live independently where this is possible (Williams, 2007). A consequence of the All-Wales Strategy for Older People was the creation of the National Service Framework for Older People in Wales and the establishment of the position of Commissioner for Older People to counteract discrimination and oppression and eventually to promote opportunities (Williams, 2007). Such standards of practice have been intensified through the Care Council for Wales and the Care and Social Services inspectorate for Wales (Scourfield et al, 2008). Additionally, the unique role enables social work practitioners to diverge from more formal practice and have contact with individuals and groups in their own homes or communities, in order to work in partnership rather than enforce solutions to difficulties (Pierson, 2002). Hence, it has been disputed that a unique quality of social work is found in the close attention it pays to individuals own understanding of their situation and to the informal processes by which client or user and social worker broker a solution (Jordan, 1987 cited in Pierson, 2002: XV). This distinctive practice approach presents numerous opportunities for social workers to address discrimination and exclusion, and ultimately promote equality and the inclusion of individuals and groups in society (Pierson, 2002). Bibliography Adams, R. , Dominelli, L. and Payne, M. (1998) Social Work: Themes, Issues and Critical Debates (Palgrave). Care Council for Wales Code of Practice (available online at http://www.ccwales.org.uk). Clark, C. (1998) Self-determination and Paternalism in Community Care: Practice and Prospects, British Journal of Social Work, 28, pp. 387-402. Davies, E. (1994) They all Speak Welsh Anyway: Yr iaith Gymraeg ac ymarfer gwrth-orthrymol; the Welsh Language and Anti-oppressive Practice (Caerdydd: CCETSW). Jordan, B. (1987) Rethinking Welfare (Oxford: Blackwell), cited in Pierson, J. (2002) Tackling Social Exclusion (Routledge). Joseph Rountree Foundation (2009) Monitoring poverty and social exclusion in Wales (available online at http://www.jrf.org.uk). International Federation of Social Workers (available online at http://www.ifsw.org.uk). Mattison, M. (2000) Ethical Decision Making: The Person in the Process, Social Work Vol.45 (3), pp.201-212. National Assembly for Wales 2009 Third Annual Report on Social Exclusion in Wales. Cardiff: National Assembly for Wales. Pierson, J. (2002) Tackling Social Exclusion (Routledge). Sayce, L. , (1998) From Psychiatric Patient to Citizen (Basingstoke: Macmillan). Scourfield, J. , Holland, S. and Young, C. (2008) Social Work in Wales Since Democratic Devolution, Australian Social Work, 61, pp. 42-56. Social Exclusion Unit (available online at http://www.social exclusion.gov.uk). Thompson, N. (1997) Anti-Discriminatory Practice (Macmillan Press LTD). Welsh Assembly Government (2004) Children and Young People: Rights to Action (available online at http://www.assemblywales.org). Welsh Assembly Government (2007) A Strategy for Social Services in Wales over the next Decade: Fulfilled Lives, Supportive Communities (available online at http://www.wales.nhs.uk/sitesplus/documents/829/WAG). Williams, C. , (2004) Access to Justice and Social Inclusion: The Policy Changes in Wales, Journal of Social Welfare and Family Law, 26(1) pp. 53-68. Williams, C. (2007) Social Policy for Social Welfare Practice in a Devolved Wales (Venture Press).

Analysis of SMEs in India

Analysis of SMEs in India What are SMEs? Small and medium enterprises (also SMEs, small and medium businesses, SMBs, and variations thereof) are companies whose headcount or turnover falls below certain limits. The lack of a universal definition for SMEs is often considered to be an obstacle for business studies and market research. Definitions in use today define thresholds in terms of employment, turnover and assets. They also incorporate a reasonable amount of flexibility around year-to-year changes in these measures so that a business qualifying as an SME in one year can have a reasonable expectation of remaining an SME in the next. The thresholds themselves, however, vary substantially between countries. As the SME thresholds dictate to some extent the provision of government support, countries in which manufacturing and labor-intensive industries are prioritized politically tend to opt for more relaxed thresholds. Definition of SMEs in Indian context The MSMED Act 2006, which came into force w.e.f. 02/10/2006, defines the Micro, Small, and Medium Enterprises. As per the Act, the activities are classified into Manufacturing and Service Category. Initially, the MSMED Act 2006 had not defined the ‘Services Sector and RBIs guidelines were awaited. However, subsequently RBI have defined the services sector and the activities that can be covered under the SME sector. The following chart indicates the threshold investment levels for both Manufacturing sector (INVESTMENT IN PLANT MACHINERY) and Services sector (INVESTMENT IN EQUIPMENT) for the above three categories of Manufacturing and Services Enterprises : While calculating the investment in plant and machinery/equipment referred to above, the original price thereof shall be taken into account,irrespective of whether the plant and machinery/equipment are new or second hand. In case of imported machinery/equipment, the following duty/charges/costs shall be included in calculating their value: Import Duty (not to include miscellaneous expenses such as transportation from the port to the site of the factory, demurrage paid at the port); Shipping Charges; Customs Clearance charges; and Sales Tax or Value-added Tax. Cost of the following plant machinery/equipments etc would be excluded:; equipments such as tools, jigs, dies, moulds, and spare parts for maintenance and the cost of consumable stores; installation of plant machinery; research and development and pollution control equipments; power generation set and extra transformer installed by the enterprises as per the Regulations of the State Electricity Board; Bank charges and Service Charges paid to the National Small Industries Corporation or the State Small Industries Corporation; Procurement or Installation of cables, wiring bus bars, electrical control panels (not mounted on individual machines) Oil circuit breakers or miniature circuit breakers which are necessarily to be used for providing electrical power to the plant and machinery or for safety measures; Gas producer plants; Transportation charges (other than sales tax or value-added tax and excise duty) for indigeneous machinery from the place of their manufacture to the site of the enterprise); Charges paid for technical know-how for erection of plant machinery; Such storage tanks which store raw materials and finished products only and are not linked with the manufacturing process; Fire-fighting equipment; and Such other items as may be specified, by notification from time to time. In case of Service Enterprises, the original cost to exclude furniture, fittings and other items not directly related to the services rendered. Land and Building would also not be included while computing the machinery/equipments cost. SME would be meant to include Micro Small and Medium Enterprises (MSMEs). The above definitions of Micro, Small and Medium Enterprises would be in place of the existing definitions of Small Medium Industries and SSSBEs/Tiny Enterprises. Micro Enterprises would include Tiny Industries also. Small Enterprises (Manufacturing) would mean Small Scale Industries (SSIs). Medium Enterprises (Manufacturing) would mean Medium Industries (MIs). Small Enterprises (Services) and Medium Enterprises(Services) would mean other Small Medium Enterprises. Thus, SME Advances would be categorised as under: All advances to segments viz. Micro, Small and Medium Enterprises in the Manufacturing sector irrespective of sanctioned limits, (including advances against TDRs/Govt. Securities etc for business purposes to these categories of Borrowers), and Advances to Services Sectors such as Professional Self-Employed, Small Business Enterprises, and Small Road/Water Transport Operators and other enterprises, engaged in providing/rendering of services, conforming to the above investment criteria and -enjoying borrowing/non-borrowing facilities with the Bank (including advances against TDRs/Govt. Securities etc for business purposes to these categories of Borrowers). Those enterprises exceeding the investment ceilings would be categorized as Large Enterprises and be outside the purview of SME. The sanctioned limits would no longer be the criteria determining the status as micro or small or medium enterprises in these cases. Reserve Bank of India has since reviewed the definition on Priority Sector and have issued revised guidelines on lending to Priority Sector vide their Master Circular dated 2nd July, 2007. As per this circular Retail Trade is excluded from the activities classified as SME. (Source: www.bankofindia.com) Importance of SMEs Small and medium-sized enterprises (SMEs) are the backbone of all economies and are a key source of economic growth, dynamism and flexibility in advanced industrialized countries, as well as in emerging and developing economies. SMEs constitute the dominant form of business organization, accounting for over 95% and up to 99% of enterprises depending on the country. They are responsible for between 60-70% net job creations in Developing countries. Small businesses are particularly important for bringing innovative products or techniques to the market. Microsoft may be a software giant today, but it started off in typical SME fashion, as a dream developed by a young student with the help of family and friends. Only when Bill Gates and his colleagues had a saleable product were they able to take it to the marketplace and look for investment from more traditional sources. SMEs are vital for economic growth and development in both industrialized and developing countries, by playing a key role in creating new jobs. Financing is necessary to help them set up and expand their operations, develop new products, and invest in new staff or production facilities. Many small businesses start out as an idea from one or two people, who invest their own money and probably turn to family and friends for financial help in return for a share in the business. But if they are successful, there comes a time for all developing SMEs when they need new investment to expand or innovate further. That is where they often run into problems, because they find it much harder than larger businesses to obtain financing from banks, capital markets or other suppliers of credit. Boosting industrial growth By enhancing existing capacities, and by delivering cost-efficient goods and services as per the requirements of the local markets, SMEs have been driving industrial growth. Inspiring Consumption and Social Change SMEs play a defining role by offering reasonable, yet revolutionary goods and services to cater to the changing market requirements. Currently, SMEs have made its presence felt in areas like education, medical care, transportation, entertainment and local infrastructure development. Minuscule investment SMEs need low capital investment, in terms of per unit of output Increased Employment Opportunities SMEs generate both direct and indirect employment opportunities, in 2006-07, for instance, for every ten million rupees invested by the SME sector spawned employment opportunities for over 150 people. However, the same amount of investment carried out by the overall economy generated employment for just 37. 4 people. As per Government statistics in 2007-08, SMEs generated employment for 31.25 million people. Fuelling the local economy SMEs make use of natural resources and domestic skills to cater to the domestic market. The growth of SME sector also helps in socio-economic upliftment as it generates employment opportunities for untapped masses, living in urban and rural regions. Discourages migration to urban areas SMEs are synonymous for entrepreneurship. And the best part being setting up an SME doesnt include much risk. If SMEs generate employment opportunities in rural and semi-urban areas, migration to urban areas can be stemmed to a great extent. Transition from Agriculture Economy to Service-oriented one SMEs can play a crucial role in achieving the transition from a dominant agricultural economy to a service oriented economy, akin to Japan. Japans agricultural workforce has gone done from 68 percent to 4.9 percent, in case of United States, from 44 percent to 9 percent. Further, Indian agriculture sector can no longer generate extra employment opportunities to meet the requirements of the ever-growing population. In such a situation, only SMEs can come to the nations rescue. SME in the global scenario Even in the global scenario SMEs have always played a crucial role in their respective countrys economy. International comparisons reveal that SMEs create the majority of jobs. In the USA, nearly half of the private workforce is employed in small firms, of which three-fifth have less than five employees. In Japan, 78 percent of jobs are generated by SMEs. The same sector in Korea accounts for 99 percent of all manufacturing enterprises and 69 percent of employment in this sector. Therefore, SMEs must play a central role in the countrys employment strategy. This will require modification of policies and programmes to level the playing field, improve availability of credit, increase productivity, raise quality consciousness and competitiveness, and enhance job quality. Recent experiences of different countries in the context of globalisation also demonstrate that SMEs are better insulated from the pressures generated by the volatility of world trade and capital markets. They are more resistant to the stresses, and more responsive to the demands of the fast-changing technologies and entrepreneurial responses. Indeed, they are observed to be a very important vehicle for new technology adoption and entrepreneurial development. Ensuring the competitiveness of the SMEs is important as it would help in overall growth of manufacturing sector as also the national economy. The Indian Context The micro, small and medium enterprises (MSME) sector contributes significantly to the manufacturing output, employment and exports of the country. It is estimated that in terms of value, the sector accounts for about 45 per cent of the manufacturing output and 40 percent of the total exports of the country. The sector is estimated to employ about 42 million persons in over 13 million units throughout the country. Further, this sector has consistently registered a higher growth rate than the rest of the industrial sector. There are over 6000 products ranging from traditional to high-tech items, which are being manufactured by the MSMEs in India. It is well known that the MSMEs provide the maximum opportunities for both self employment and jobs after agriculture. Recognizing the contribution and potential of the sector, the definitions and coverage of the MSE sector were broadened significantly under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 which recognized the concept of â€Å"enterprise† to include both manufacturing and services sector besides, defining the medium enterprises. For collecting and compiling the data for the MSME sector (including khadi, village and coir industries), the Fourth All India Census of MSMEs with reference year 2006-07, is being conducted in the country. The Census will provide the first database on the MSME sector after the enactment of MSME Development Act, 2006. PERFORMANCE OF MSEs As per the quick estimates of 4th All-India Census of MSMEs, the number ofenterprises is estimated to be about 26 million and these provide employment to an estimated60 million persons. Of the 26 million MSMEs, only 1.5 million are in theregistered segment while the remaining 24.5 million (94%) are in the unregistered segment. The State-wise distribution of MSMEs show that more than 55% of these enterprises are in 6 States, namely, Uttar Pradesh, Maharashtra, Tamil Nadu, West Bengal, Andhra Pradesh and Karnataka. Further, about 7% of MSMEs are owned by women and more than 94% of the MSMEs are proprietorships or partnerships. In view of the MSME sectors role in the economic and social development of the country, the Government has emphasized on its growth and development. It has taken various measures/initiatives from time to time which have facilitated the sectors ubiquitous growth. No discussion on MSMEs can be complete without a full treatment of the unorganized sector in which ent erprises are typically established through own funds or funds obtained through non-institutional sources, they lack managerial bandwidth, do not have established channels for marketing and are centered around a single traditional technology. More than 94 percent of MSMEs are unregistered, with a large number established in the informal or unorganized sector. The National Commission for Enterprises in the Unorganised Sector (NCEUS) defines unorganized sector as enterprise employing less than 10 workers. It has estimated such enterprises at 58 million with employment generated of 104 million persons. Of these, more than half the workers are classified as ‘self-employed. A large segment in this universe of self-employed consists of those who are engaged in non-farm activities. This segment predominantly consists of own account enterprises, i.e., where there are no hired workers and are run by self with or without the help of unpaid family members. The own account enterprises can be distinguished into those running within households and those outside the households. The household enterprises operate on the basis of family labour organizing production on its own, acquire its own raw material, use its own machinery and tools and market its products. Apart from own account enterprises, this segment also consists of enterprises having hired workers between 2 to 9. Very often, these enterprises are located in clusters but function independently without inter-firm linkages. The Office of the DC (MSME) provides estimates in respect of various performance parameters relating to the Sector. The time series data in respect of the Sector on various economic parameters, is incorporated in the following Table: MSEs Performance: Units, Investment, Production, Employment Exports The figures in brackets show the % growth over the previous year. Projected COMPARISON OF THE MSE SECTOR WITH THE OVERALL INDUSTRIAL SECTOR: The MSE sector has maintained a higher rate of growth vis-à  -vis the overall industrial sector as would be clear from the comparative growth rates of production for both the sectors during last five years as incorporated in the Table given below: Comparative Growth Rates CONTRIBUTION OF MSEs IN THE GROSS DOMESTIC PRODUCT (GDP) EMPLOYMENT IN MSE SECTOR The total employment from the MSE sector (including SSSBEs) in the country as per the Third All India Census of MSEs with reference Year 2001-02 was 249.33 lakh numbers. The units operating with fixed premises are treated as MSEs. As per the estimates compiled for the year 2007-08, the employment was 322.28 lakh persons in the sector. The share of MSEs in the total employment among units engaged in manufacturing and services is around 34.93%. Challenges faced by smes Mentoring Advocacy Even today, most small business in India are set up by first generation entrepreneurs. They often have a product or service idea, some money, a zest to hard work but limited knowledge about markets, Government or bank procedures, cash flows or how to manage labour. This is where mentoring a hand holding support becomes crucial. At times, this comes from an individual such as friend, relative, an NGO or a parent unit. This is episodic and unable to meet the vast requirement which the country has. This is sought to be institutionalized through extension/outreach efforts of central and state Governments. Trained manpower is made available for this task, right down the district levels, to act as the friend, philosopher and guide. These resource persons guide in setting up a evit, making it commercially viable, interacting with financial institutions and understanding markets, as well as the impact of globalisation with advancements in it. There is a strong more towards linking SMEs with bigger commodity or supply chain and providing acceptable quality and delivery schedules. The Central Governments agency for the task, the Small Industry Development Organisation, has accordingly moved away from its pre-reform regulatory to a direct promotional role of hand holding, advocacy and facilitation. This encompasses the legislative support put in place, fiscal incentives and protection from unequal competition. Credit Credit is the lifeline of business. Small businesses lack access to capital and money markets. Investors are unwilling to invest in proprietorships, partnerships or unlisted companies. As risk perception about small businesses is high. So is the cost of capital, institutional credit, when available, requires collateral which in turn makes the owner of the unit even more vulnerable to foreclosure. Credit guarantee funds which assist lending institution in advancing loans or mutual guarantee systems involving common guarantees from a group of people have not emerged in a significant manner. Unit finances comes under severe stress whenever an occasional event such as a large order, rejection of consignment, inordinate delay in payment occurs. The common stereotype about a banker lending an umbrella in sunshine and wanting it back as soon as it rains, gets reinforced in their dealing with small enterprises. It is, therefore, not surprising, that small enterprises prefer to first tap own resources or loans from friends and relatives and theres look for external finance. In India, many of small manufacturing enterprises do not access bank finance and only about 16% of total bank credit finds its way to the sector. Despite being a priority sector for lending, small manufacturing enterprises get just about 8% of their annual turnover as working capital requirements, as against normative requirements of 20%. Even for this, cost of credit is high. The problem is recognized and is sought to be addressed through various ways: Establishment of ISO 9000 certified, specialized SSI bank branches in districts/clusters. Directive for working capital finance @ 20% of annual normative turnover. Waiver of collateral requirements upto Rs. 0.5 million. Setting up of a credit Guarantee Trust to cover loans upto Rs. 2.5 million. Composite loans from a single agency upto Rs. 2.5 million. A national equity fund for equity to SSI units at 5 percent service charge Technology As mentioned earlier, small enterprises are often regarded for their labour intensity and the capability to work with local resources. In the part, this has often led to less emphasis on technology. Run of the mill technology coupled with functional packaging and inadequate finishing have at times led to small sector products being labeled as being of poor or substandard quality. This has a cascading impact on competitiveness. As small enterprises realize the need to link up with large ones, they are having a relook at technology options which would improve productivity, effectiveness and competitiveness. While sourcing technology, small business need to concentrate on the following essential issues: Information about Technology For small units information about technology options is often through word of mouth or from a visit to an advanced unit. With the advent of internet, new vistas are opening up through electronic journey catalogue downloads and advanced search facilities. The technology bureau for small enterprise promoted with the assistance of the UN offers access to databases and information on technology. Technology intervention in clusters offers near by units an opportunity for a look and feel of advanced technology entrepreneurs are also assisted to participate in overseas trade fairs to update tem with latest worldwide. Tool rooms, testing centres, production-cum-process centres and workshops also assist in this task. Actual procurement of technology Barriers to import technology, technology transfer issues, vendor capability, after sales support, import procedures impede procurement. In India, the Asia Pacific Centre to Transfer of Technology promotes match making between buyer and seller and facilities procurement through escort services. Encouragement to import of capital goods has also helped. Finance for Technology upgradation Small enterprises look to external sources of funding for upgrading technology as withdrawing money from business entails its own costs. In India, a technology upgradation and modernization fund and a hire purchase scheme attempts to meet this requirement. These are however, funds at normal lending costs. A new scheme called the credit linked capital subsidy scheme, for reducing the cost of funds, has now been put into place. Market Access In todays world, small enterprises can hardly match the adventising support or distribution reach of a large corporation. In India, small units sell best in limited or neighbourhood markets or when they are meeting a low volume specialized demand which no large player can effectively caterto. Increasingly, now the endeavour is to build the marketing activity of small units around their competitive advantage i.e., products which are labour intensive, items which cater to niche markets, low volume high margin products, sub assembly tasks, outsourcing jobs and ancillarisation. Sub-contracting exchanges are being established through Government and Industry associations to promote such interface. After sales service for imported products, AMCs on electronic equipment, reverse engineering (to the extent that it is WTO compatible) are the other areas being encouraged, sophisticated marketing is a task best left to large players. Small enterprises in India are realizing that the term â€Å" marketing† perhaps implies different things to different people for new SME businesses, head on competition with established giants makes little sense. Infrastructure Small units have traditionally operated from homes or a neighborhood work shed. Slowly, they began moving out and clustering together wherever electricity, water, raw materials, markets or labour were easier to access. Policy makers in India had anticipated the need for suitable infrastructure five decades ago and began a programme for setting up industrial estates. Non-assessment of economic viability, tardy implementation and poor maintenance due to drying up of funds affected these adversely. Later in the post reform period, the problem was sought to be addressed by setting up of such estates exclusively for small business. Almost 50 such estates have been set up. Because of their better infrastructure such as roads, telecommunication, power, effluent treatment plants, power, banks, watch ward, and reasonable cost, they have proved to be popular with small manufacturing for factory accommodation, allotment of sheds on hire purchase as well as outright sale etc. A concerted move h as also now been initiated for upgrading existing estates. Globalisation The globalisation of trade commerce has been given a push by agreements in the WTO and changed the business environment. It has therefore become necessary to sensitise SMEs about these changes and prepare them for the future. In India, a number of steps have been taken in this regard. Apart from setting up a WTO cell in the nodal ministry, 28 sensitization workshops were conducted across the country. Workshops have also been held on intellectual property rights and bar coding. Monitoring of imports in specific sectors where SMEs hae a significant presence and initiation of anti-dumping action where dumping was noticed, are the other steps taken in this respect. Procedures Government and bank procedures coupled with inspections remain a major hurdle in growth of small units. There are over 60 central, state and local laws which regulate small businesses in the areas of labour, factory maintenance environment, municipal bye laws, taxation, power etc. These require the maintenance of as many as 116 registers and forms. To enforce these, there is an army of inspector who visit units leading to harassment, delay, obstruction and increase in cost of production. Many small units are one man shows and cannot satisfy the letter of the law. The streamlining of such rules and regulations has become necessary if the creative genius of Indian entrepreneurs is to be fully unleashed. Some state governments have exhibited initiative in this regard. The Central Government has initiated a study to enact a single law for small businesses. This enactment should ease the situation considerably. Exit Mechanism Like products, Industries too have life cycles. There are industry segments which have seen their best days. Similarly, there are individual units where no amount of additional funds will help. Their bank loans have become bad and non performing. A sound exit policy which also safeguards labour interests has therefore, become necessary. It is anticipated that as of 1998, over Rs. 3.8 billion were locked in sick/weak units. An exit policy would help fresh circulation of a significant amount. The first steps in this regard have been taken recently by Indias central bank where by one time settlement of dues as on 31 March, 1997 was allowed. The results have been encouraging. Strategy Interventions for Revitalisation and Growth Significant charges in economic environment are being heralded in by the WTO. The removal of QRS has led to increased competition with imports. Many sectors of industry are facing competition from Chinese or Taiwanese imports within the country or from Bangladesh Srilanka or Nepal in export markets. It is the belief of the Indian Government that promotion and not protection is the answer to the issues of survival and growth. Thus, while reservation of items for exclusive production continues, the focus must now be on strengthening capabilities. This implies a holistic look at the concerns of industry. As part of this, the following strategic interventions have been initiated Easing access to general credit Introduction of options of limited partnership and factoring Subsiding cost of finance for upgrading technology Industry specific technology upgradation programmes Fund for developing and accessing overseas markets for export Expanding reach of infrastructure programmes Ushering in a regime of self certification in lien of inspections for various regulations Interventions in the future require that hurdles to growth are removed. They must encourage a seamless movement from small to medium to large. The Indian Government, therefore, is working on a new vision for the SSI sector through a flexible approach and a motivated team. The advocacy role of Government now involves new dimensions such as building up and arguing cases before the world trade body or dispute redressal for a, articulating needs of small enterprises before decision makers and other agencies. Credit is increasingly being made available at international rates. Technology upgrades at both the cluster and the individual level are being assisted. Cluster level technologies will be at Government cost with only user charges recovered credit guarantee scheme has been put in place if our market has opened up to due to WTO, we need to enable our small units established foot holds in new markets opened up for then by globalisation. Thus, along with improving quality, they are being given the opportunity of over seas travel, conducting market surveys, test marketing etc. The existing industrial centres are being revamped by involving industry associations with some government assistance and finally a migration from sunset industries to sunrise industries is being encouraged through a comprehensive and graceful exit policy, which balances interest of labour with those of the owners. Conclusion The singular contribution of SMEs is on account of their unique characteristics. Their role in economic activity is manifest in both tangible and intangible ways. If this contribution is to be sustained, then their uniqueness needs to be nurtured in an overt and explicit manner. The Indian experience has shown that it is possible to design targeted interventions be they area specific like clusters or be they sector / sub-sector or product-specific. Other countries, be they Asian or OECD, also have policies which aim at similar support. The need of the hour is for us to learn from each other, drawing upon experiences and identity best practice policies. These in turn have to meet local conditions and circumstances. A one size fits all approach will not work. Nevertheless, there can be no two opinions about the priority that SME policies deserve for achieving the socio-economic goal of employment growth and social justice, along with the individual aspirations. Recent Government Policies and Measures In addition to the growth potential of the sector and its critical role in the manufacturing and value chains, the heterogeneity and the unorganised nature of the Indian MSMEs are important aspects that need to be factored into policy making an Analysis of SMEs in India Analysis of SMEs in India What are SMEs? Small and medium enterprises (also SMEs, small and medium businesses, SMBs, and variations thereof) are companies whose headcount or turnover falls below certain limits. The lack of a universal definition for SMEs is often considered to be an obstacle for business studies and market research. Definitions in use today define thresholds in terms of employment, turnover and assets. They also incorporate a reasonable amount of flexibility around year-to-year changes in these measures so that a business qualifying as an SME in one year can have a reasonable expectation of remaining an SME in the next. The thresholds themselves, however, vary substantially between countries. As the SME thresholds dictate to some extent the provision of government support, countries in which manufacturing and labor-intensive industries are prioritized politically tend to opt for more relaxed thresholds. Definition of SMEs in Indian context The MSMED Act 2006, which came into force w.e.f. 02/10/2006, defines the Micro, Small, and Medium Enterprises. As per the Act, the activities are classified into Manufacturing and Service Category. Initially, the MSMED Act 2006 had not defined the ‘Services Sector and RBIs guidelines were awaited. However, subsequently RBI have defined the services sector and the activities that can be covered under the SME sector. The following chart indicates the threshold investment levels for both Manufacturing sector (INVESTMENT IN PLANT MACHINERY) and Services sector (INVESTMENT IN EQUIPMENT) for the above three categories of Manufacturing and Services Enterprises : While calculating the investment in plant and machinery/equipment referred to above, the original price thereof shall be taken into account,irrespective of whether the plant and machinery/equipment are new or second hand. In case of imported machinery/equipment, the following duty/charges/costs shall be included in calculating their value: Import Duty (not to include miscellaneous expenses such as transportation from the port to the site of the factory, demurrage paid at the port); Shipping Charges; Customs Clearance charges; and Sales Tax or Value-added Tax. Cost of the following plant machinery/equipments etc would be excluded:; equipments such as tools, jigs, dies, moulds, and spare parts for maintenance and the cost of consumable stores; installation of plant machinery; research and development and pollution control equipments; power generation set and extra transformer installed by the enterprises as per the Regulations of the State Electricity Board; Bank charges and Service Charges paid to the National Small Industries Corporation or the State Small Industries Corporation; Procurement or Installation of cables, wiring bus bars, electrical control panels (not mounted on individual machines) Oil circuit breakers or miniature circuit breakers which are necessarily to be used for providing electrical power to the plant and machinery or for safety measures; Gas producer plants; Transportation charges (other than sales tax or value-added tax and excise duty) for indigeneous machinery from the place of their manufacture to the site of the enterprise); Charges paid for technical know-how for erection of plant machinery; Such storage tanks which store raw materials and finished products only and are not linked with the manufacturing process; Fire-fighting equipment; and Such other items as may be specified, by notification from time to time. In case of Service Enterprises, the original cost to exclude furniture, fittings and other items not directly related to the services rendered. Land and Building would also not be included while computing the machinery/equipments cost. SME would be meant to include Micro Small and Medium Enterprises (MSMEs). The above definitions of Micro, Small and Medium Enterprises would be in place of the existing definitions of Small Medium Industries and SSSBEs/Tiny Enterprises. Micro Enterprises would include Tiny Industries also. Small Enterprises (Manufacturing) would mean Small Scale Industries (SSIs). Medium Enterprises (Manufacturing) would mean Medium Industries (MIs). Small Enterprises (Services) and Medium Enterprises(Services) would mean other Small Medium Enterprises. Thus, SME Advances would be categorised as under: All advances to segments viz. Micro, Small and Medium Enterprises in the Manufacturing sector irrespective of sanctioned limits, (including advances against TDRs/Govt. Securities etc for business purposes to these categories of Borrowers), and Advances to Services Sectors such as Professional Self-Employed, Small Business Enterprises, and Small Road/Water Transport Operators and other enterprises, engaged in providing/rendering of services, conforming to the above investment criteria and -enjoying borrowing/non-borrowing facilities with the Bank (including advances against TDRs/Govt. Securities etc for business purposes to these categories of Borrowers). Those enterprises exceeding the investment ceilings would be categorized as Large Enterprises and be outside the purview of SME. The sanctioned limits would no longer be the criteria determining the status as micro or small or medium enterprises in these cases. Reserve Bank of India has since reviewed the definition on Priority Sector and have issued revised guidelines on lending to Priority Sector vide their Master Circular dated 2nd July, 2007. As per this circular Retail Trade is excluded from the activities classified as SME. (Source: www.bankofindia.com) Importance of SMEs Small and medium-sized enterprises (SMEs) are the backbone of all economies and are a key source of economic growth, dynamism and flexibility in advanced industrialized countries, as well as in emerging and developing economies. SMEs constitute the dominant form of business organization, accounting for over 95% and up to 99% of enterprises depending on the country. They are responsible for between 60-70% net job creations in Developing countries. Small businesses are particularly important for bringing innovative products or techniques to the market. Microsoft may be a software giant today, but it started off in typical SME fashion, as a dream developed by a young student with the help of family and friends. Only when Bill Gates and his colleagues had a saleable product were they able to take it to the marketplace and look for investment from more traditional sources. SMEs are vital for economic growth and development in both industrialized and developing countries, by playing a key role in creating new jobs. Financing is necessary to help them set up and expand their operations, develop new products, and invest in new staff or production facilities. Many small businesses start out as an idea from one or two people, who invest their own money and probably turn to family and friends for financial help in return for a share in the business. But if they are successful, there comes a time for all developing SMEs when they need new investment to expand or innovate further. That is where they often run into problems, because they find it much harder than larger businesses to obtain financing from banks, capital markets or other suppliers of credit. Boosting industrial growth By enhancing existing capacities, and by delivering cost-efficient goods and services as per the requirements of the local markets, SMEs have been driving industrial growth. Inspiring Consumption and Social Change SMEs play a defining role by offering reasonable, yet revolutionary goods and services to cater to the changing market requirements. Currently, SMEs have made its presence felt in areas like education, medical care, transportation, entertainment and local infrastructure development. Minuscule investment SMEs need low capital investment, in terms of per unit of output Increased Employment Opportunities SMEs generate both direct and indirect employment opportunities, in 2006-07, for instance, for every ten million rupees invested by the SME sector spawned employment opportunities for over 150 people. However, the same amount of investment carried out by the overall economy generated employment for just 37. 4 people. As per Government statistics in 2007-08, SMEs generated employment for 31.25 million people. Fuelling the local economy SMEs make use of natural resources and domestic skills to cater to the domestic market. The growth of SME sector also helps in socio-economic upliftment as it generates employment opportunities for untapped masses, living in urban and rural regions. Discourages migration to urban areas SMEs are synonymous for entrepreneurship. And the best part being setting up an SME doesnt include much risk. If SMEs generate employment opportunities in rural and semi-urban areas, migration to urban areas can be stemmed to a great extent. Transition from Agriculture Economy to Service-oriented one SMEs can play a crucial role in achieving the transition from a dominant agricultural economy to a service oriented economy, akin to Japan. Japans agricultural workforce has gone done from 68 percent to 4.9 percent, in case of United States, from 44 percent to 9 percent. Further, Indian agriculture sector can no longer generate extra employment opportunities to meet the requirements of the ever-growing population. In such a situation, only SMEs can come to the nations rescue. SME in the global scenario Even in the global scenario SMEs have always played a crucial role in their respective countrys economy. International comparisons reveal that SMEs create the majority of jobs. In the USA, nearly half of the private workforce is employed in small firms, of which three-fifth have less than five employees. In Japan, 78 percent of jobs are generated by SMEs. The same sector in Korea accounts for 99 percent of all manufacturing enterprises and 69 percent of employment in this sector. Therefore, SMEs must play a central role in the countrys employment strategy. This will require modification of policies and programmes to level the playing field, improve availability of credit, increase productivity, raise quality consciousness and competitiveness, and enhance job quality. Recent experiences of different countries in the context of globalisation also demonstrate that SMEs are better insulated from the pressures generated by the volatility of world trade and capital markets. They are more resistant to the stresses, and more responsive to the demands of the fast-changing technologies and entrepreneurial responses. Indeed, they are observed to be a very important vehicle for new technology adoption and entrepreneurial development. Ensuring the competitiveness of the SMEs is important as it would help in overall growth of manufacturing sector as also the national economy. The Indian Context The micro, small and medium enterprises (MSME) sector contributes significantly to the manufacturing output, employment and exports of the country. It is estimated that in terms of value, the sector accounts for about 45 per cent of the manufacturing output and 40 percent of the total exports of the country. The sector is estimated to employ about 42 million persons in over 13 million units throughout the country. Further, this sector has consistently registered a higher growth rate than the rest of the industrial sector. There are over 6000 products ranging from traditional to high-tech items, which are being manufactured by the MSMEs in India. It is well known that the MSMEs provide the maximum opportunities for both self employment and jobs after agriculture. Recognizing the contribution and potential of the sector, the definitions and coverage of the MSE sector were broadened significantly under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 which recognized the concept of â€Å"enterprise† to include both manufacturing and services sector besides, defining the medium enterprises. For collecting and compiling the data for the MSME sector (including khadi, village and coir industries), the Fourth All India Census of MSMEs with reference year 2006-07, is being conducted in the country. The Census will provide the first database on the MSME sector after the enactment of MSME Development Act, 2006. PERFORMANCE OF MSEs As per the quick estimates of 4th All-India Census of MSMEs, the number ofenterprises is estimated to be about 26 million and these provide employment to an estimated60 million persons. Of the 26 million MSMEs, only 1.5 million are in theregistered segment while the remaining 24.5 million (94%) are in the unregistered segment. The State-wise distribution of MSMEs show that more than 55% of these enterprises are in 6 States, namely, Uttar Pradesh, Maharashtra, Tamil Nadu, West Bengal, Andhra Pradesh and Karnataka. Further, about 7% of MSMEs are owned by women and more than 94% of the MSMEs are proprietorships or partnerships. In view of the MSME sectors role in the economic and social development of the country, the Government has emphasized on its growth and development. It has taken various measures/initiatives from time to time which have facilitated the sectors ubiquitous growth. No discussion on MSMEs can be complete without a full treatment of the unorganized sector in which ent erprises are typically established through own funds or funds obtained through non-institutional sources, they lack managerial bandwidth, do not have established channels for marketing and are centered around a single traditional technology. More than 94 percent of MSMEs are unregistered, with a large number established in the informal or unorganized sector. The National Commission for Enterprises in the Unorganised Sector (NCEUS) defines unorganized sector as enterprise employing less than 10 workers. It has estimated such enterprises at 58 million with employment generated of 104 million persons. Of these, more than half the workers are classified as ‘self-employed. A large segment in this universe of self-employed consists of those who are engaged in non-farm activities. This segment predominantly consists of own account enterprises, i.e., where there are no hired workers and are run by self with or without the help of unpaid family members. The own account enterprises can be distinguished into those running within households and those outside the households. The household enterprises operate on the basis of family labour organizing production on its own, acquire its own raw material, use its own machinery and tools and market its products. Apart from own account enterprises, this segment also consists of enterprises having hired workers between 2 to 9. Very often, these enterprises are located in clusters but function independently without inter-firm linkages. The Office of the DC (MSME) provides estimates in respect of various performance parameters relating to the Sector. The time series data in respect of the Sector on various economic parameters, is incorporated in the following Table: MSEs Performance: Units, Investment, Production, Employment Exports The figures in brackets show the % growth over the previous year. Projected COMPARISON OF THE MSE SECTOR WITH THE OVERALL INDUSTRIAL SECTOR: The MSE sector has maintained a higher rate of growth vis-à  -vis the overall industrial sector as would be clear from the comparative growth rates of production for both the sectors during last five years as incorporated in the Table given below: Comparative Growth Rates CONTRIBUTION OF MSEs IN THE GROSS DOMESTIC PRODUCT (GDP) EMPLOYMENT IN MSE SECTOR The total employment from the MSE sector (including SSSBEs) in the country as per the Third All India Census of MSEs with reference Year 2001-02 was 249.33 lakh numbers. The units operating with fixed premises are treated as MSEs. As per the estimates compiled for the year 2007-08, the employment was 322.28 lakh persons in the sector. The share of MSEs in the total employment among units engaged in manufacturing and services is around 34.93%. Challenges faced by smes Mentoring Advocacy Even today, most small business in India are set up by first generation entrepreneurs. They often have a product or service idea, some money, a zest to hard work but limited knowledge about markets, Government or bank procedures, cash flows or how to manage labour. This is where mentoring a hand holding support becomes crucial. At times, this comes from an individual such as friend, relative, an NGO or a parent unit. This is episodic and unable to meet the vast requirement which the country has. This is sought to be institutionalized through extension/outreach efforts of central and state Governments. Trained manpower is made available for this task, right down the district levels, to act as the friend, philosopher and guide. These resource persons guide in setting up a evit, making it commercially viable, interacting with financial institutions and understanding markets, as well as the impact of globalisation with advancements in it. There is a strong more towards linking SMEs with bigger commodity or supply chain and providing acceptable quality and delivery schedules. The Central Governments agency for the task, the Small Industry Development Organisation, has accordingly moved away from its pre-reform regulatory to a direct promotional role of hand holding, advocacy and facilitation. This encompasses the legislative support put in place, fiscal incentives and protection from unequal competition. Credit Credit is the lifeline of business. Small businesses lack access to capital and money markets. Investors are unwilling to invest in proprietorships, partnerships or unlisted companies. As risk perception about small businesses is high. So is the cost of capital, institutional credit, when available, requires collateral which in turn makes the owner of the unit even more vulnerable to foreclosure. Credit guarantee funds which assist lending institution in advancing loans or mutual guarantee systems involving common guarantees from a group of people have not emerged in a significant manner. Unit finances comes under severe stress whenever an occasional event such as a large order, rejection of consignment, inordinate delay in payment occurs. The common stereotype about a banker lending an umbrella in sunshine and wanting it back as soon as it rains, gets reinforced in their dealing with small enterprises. It is, therefore, not surprising, that small enterprises prefer to first tap own resources or loans from friends and relatives and theres look for external finance. In India, many of small manufacturing enterprises do not access bank finance and only about 16% of total bank credit finds its way to the sector. Despite being a priority sector for lending, small manufacturing enterprises get just about 8% of their annual turnover as working capital requirements, as against normative requirements of 20%. Even for this, cost of credit is high. The problem is recognized and is sought to be addressed through various ways: Establishment of ISO 9000 certified, specialized SSI bank branches in districts/clusters. Directive for working capital finance @ 20% of annual normative turnover. Waiver of collateral requirements upto Rs. 0.5 million. Setting up of a credit Guarantee Trust to cover loans upto Rs. 2.5 million. Composite loans from a single agency upto Rs. 2.5 million. A national equity fund for equity to SSI units at 5 percent service charge Technology As mentioned earlier, small enterprises are often regarded for their labour intensity and the capability to work with local resources. In the part, this has often led to less emphasis on technology. Run of the mill technology coupled with functional packaging and inadequate finishing have at times led to small sector products being labeled as being of poor or substandard quality. This has a cascading impact on competitiveness. As small enterprises realize the need to link up with large ones, they are having a relook at technology options which would improve productivity, effectiveness and competitiveness. While sourcing technology, small business need to concentrate on the following essential issues: Information about Technology For small units information about technology options is often through word of mouth or from a visit to an advanced unit. With the advent of internet, new vistas are opening up through electronic journey catalogue downloads and advanced search facilities. The technology bureau for small enterprise promoted with the assistance of the UN offers access to databases and information on technology. Technology intervention in clusters offers near by units an opportunity for a look and feel of advanced technology entrepreneurs are also assisted to participate in overseas trade fairs to update tem with latest worldwide. Tool rooms, testing centres, production-cum-process centres and workshops also assist in this task. Actual procurement of technology Barriers to import technology, technology transfer issues, vendor capability, after sales support, import procedures impede procurement. In India, the Asia Pacific Centre to Transfer of Technology promotes match making between buyer and seller and facilities procurement through escort services. Encouragement to import of capital goods has also helped. Finance for Technology upgradation Small enterprises look to external sources of funding for upgrading technology as withdrawing money from business entails its own costs. In India, a technology upgradation and modernization fund and a hire purchase scheme attempts to meet this requirement. These are however, funds at normal lending costs. A new scheme called the credit linked capital subsidy scheme, for reducing the cost of funds, has now been put into place. Market Access In todays world, small enterprises can hardly match the adventising support or distribution reach of a large corporation. In India, small units sell best in limited or neighbourhood markets or when they are meeting a low volume specialized demand which no large player can effectively caterto. Increasingly, now the endeavour is to build the marketing activity of small units around their competitive advantage i.e., products which are labour intensive, items which cater to niche markets, low volume high margin products, sub assembly tasks, outsourcing jobs and ancillarisation. Sub-contracting exchanges are being established through Government and Industry associations to promote such interface. After sales service for imported products, AMCs on electronic equipment, reverse engineering (to the extent that it is WTO compatible) are the other areas being encouraged, sophisticated marketing is a task best left to large players. Small enterprises in India are realizing that the term â€Å" marketing† perhaps implies different things to different people for new SME businesses, head on competition with established giants makes little sense. Infrastructure Small units have traditionally operated from homes or a neighborhood work shed. Slowly, they began moving out and clustering together wherever electricity, water, raw materials, markets or labour were easier to access. Policy makers in India had anticipated the need for suitable infrastructure five decades ago and began a programme for setting up industrial estates. Non-assessment of economic viability, tardy implementation and poor maintenance due to drying up of funds affected these adversely. Later in the post reform period, the problem was sought to be addressed by setting up of such estates exclusively for small business. Almost 50 such estates have been set up. Because of their better infrastructure such as roads, telecommunication, power, effluent treatment plants, power, banks, watch ward, and reasonable cost, they have proved to be popular with small manufacturing for factory accommodation, allotment of sheds on hire purchase as well as outright sale etc. A concerted move h as also now been initiated for upgrading existing estates. Globalisation The globalisation of trade commerce has been given a push by agreements in the WTO and changed the business environment. It has therefore become necessary to sensitise SMEs about these changes and prepare them for the future. In India, a number of steps have been taken in this regard. Apart from setting up a WTO cell in the nodal ministry, 28 sensitization workshops were conducted across the country. Workshops have also been held on intellectual property rights and bar coding. Monitoring of imports in specific sectors where SMEs hae a significant presence and initiation of anti-dumping action where dumping was noticed, are the other steps taken in this respect. Procedures Government and bank procedures coupled with inspections remain a major hurdle in growth of small units. There are over 60 central, state and local laws which regulate small businesses in the areas of labour, factory maintenance environment, municipal bye laws, taxation, power etc. These require the maintenance of as many as 116 registers and forms. To enforce these, there is an army of inspector who visit units leading to harassment, delay, obstruction and increase in cost of production. Many small units are one man shows and cannot satisfy the letter of the law. The streamlining of such rules and regulations has become necessary if the creative genius of Indian entrepreneurs is to be fully unleashed. Some state governments have exhibited initiative in this regard. The Central Government has initiated a study to enact a single law for small businesses. This enactment should ease the situation considerably. Exit Mechanism Like products, Industries too have life cycles. There are industry segments which have seen their best days. Similarly, there are individual units where no amount of additional funds will help. Their bank loans have become bad and non performing. A sound exit policy which also safeguards labour interests has therefore, become necessary. It is anticipated that as of 1998, over Rs. 3.8 billion were locked in sick/weak units. An exit policy would help fresh circulation of a significant amount. The first steps in this regard have been taken recently by Indias central bank where by one time settlement of dues as on 31 March, 1997 was allowed. The results have been encouraging. Strategy Interventions for Revitalisation and Growth Significant charges in economic environment are being heralded in by the WTO. The removal of QRS has led to increased competition with imports. Many sectors of industry are facing competition from Chinese or Taiwanese imports within the country or from Bangladesh Srilanka or Nepal in export markets. It is the belief of the Indian Government that promotion and not protection is the answer to the issues of survival and growth. Thus, while reservation of items for exclusive production continues, the focus must now be on strengthening capabilities. This implies a holistic look at the concerns of industry. As part of this, the following strategic interventions have been initiated Easing access to general credit Introduction of options of limited partnership and factoring Subsiding cost of finance for upgrading technology Industry specific technology upgradation programmes Fund for developing and accessing overseas markets for export Expanding reach of infrastructure programmes Ushering in a regime of self certification in lien of inspections for various regulations Interventions in the future require that hurdles to growth are removed. They must encourage a seamless movement from small to medium to large. The Indian Government, therefore, is working on a new vision for the SSI sector through a flexible approach and a motivated team. The advocacy role of Government now involves new dimensions such as building up and arguing cases before the world trade body or dispute redressal for a, articulating needs of small enterprises before decision makers and other agencies. Credit is increasingly being made available at international rates. Technology upgrades at both the cluster and the individual level are being assisted. Cluster level technologies will be at Government cost with only user charges recovered credit guarantee scheme has been put in place if our market has opened up to due to WTO, we need to enable our small units established foot holds in new markets opened up for then by globalisation. Thus, along with improving quality, they are being given the opportunity of over seas travel, conducting market surveys, test marketing etc. The existing industrial centres are being revamped by involving industry associations with some government assistance and finally a migration from sunset industries to sunrise industries is being encouraged through a comprehensive and graceful exit policy, which balances interest of labour with those of the owners. Conclusion The singular contribution of SMEs is on account of their unique characteristics. Their role in economic activity is manifest in both tangible and intangible ways. If this contribution is to be sustained, then their uniqueness needs to be nurtured in an overt and explicit manner. The Indian experience has shown that it is possible to design targeted interventions be they area specific like clusters or be they sector / sub-sector or product-specific. Other countries, be they Asian or OECD, also have policies which aim at similar support. The need of the hour is for us to learn from each other, drawing upon experiences and identity best practice policies. These in turn have to meet local conditions and circumstances. A one size fits all approach will not work. Nevertheless, there can be no two opinions about the priority that SME policies deserve for achieving the socio-economic goal of employment growth and social justice, along with the individual aspirations. Recent Government Policies and Measures In addition to the growth potential of the sector and its critical role in the manufacturing and value chains, the heterogeneity and the unorganised nature of the Indian MSMEs are important aspects that need to be factored into policy making an