United States V. Dentsply International, Inc

Name: Lei Chen Course : ACCT 362W Prof: Kenneth Ryesky Esq. Date: 11/4/2010 Case Caption: United States v. Dentsply International, Inc. , Court: United States of Appeals, Third Circuit. Date: Argued September 21, 2004. February 24, 2005 Citation: 399 F. 3d 181 Facts: This is an antitrust case that the defendant- Dentsply international, Inc. , is one of a dozen manufactures of artificial teeth for dentures and other restorative device. Dentsply dominates the industry, his market share is greater than 75 percent and is about fifteen times larger than that of its next-closest competitor.The defendant use sells his teeth to dealers of dental products; then the dealers supply the teeth to dental laboratories, which fabricate dentures for sale to dentists. As the hundreds of dealer who compete with each other on the basis of price and service; some other manufactures sell their teeth directly to the laboratories basis of on the price and service; Dentsply prohibits its dealers from marketi ng competitor’s teeth unless they were selling the teeth before 1993. The plaintiff- the federal government files a suit in a federal district court against Dentsply, alleging, a violation of Section 2 of the Sherman Act.Issue: Was the defendant’s preventing its dealer from selling competitors’ products restraint of trade and harm the market? Was the defendant’s act violating of section 2 of the Sherman Act? Decision: Yes, the district court’s judgment was reversed and the case was remanded with directions to grant the government’s request for injunctive relief. Reason: The Section 2 of the Sherman Act – the relevant market in this case was the total sales of artificial teeth to laboratories and dealers combined.The defendant’s act preventing its dealer from selling other competitors’ product was designed to block competitive distribution points, and to prevent giving the customer a choice. It was a plan to maintain mono polistic power, which it is restraints on trade, harm the market. Opinion I agree with the court decision because Dentsply’s act was not allowing dealers to handle competitors’ teeth, and then there will be few choices in the market giving the customer to choice. Dentsply’s monopolistic power could set the teeth price what their want, which the harm the economy and the whole market.

What Is Justic

What is Justice? Justice is defined in the dictionary as â€Å"the quality of being just; righteousness, equitableness, or moral rightness†. However it’s interpreted differently by different people what some people think is a just, others and disagree and believe otherwise. I believe justice is when some is held accountable for the atrocity they have committed. When it comes to the death penalty though many society believe it is just to murder someone for the crime they commit, it is my believe death penalty cannot be just.The purpose of punishment is to teach a lesson so that you can learn from your mistake. There are different forms of punishment for different crimes punishment is needed to discourage people from committing a crime. There is a positive and negative punishment. A positive punishment is when you try to help the person and help them understand and may sometimes include rehabilitation. The negative punishment is: killing the person and shaming the person. The Maori way is a positive way of punishment. And the Portion’s way is a negative punishment.In the â€Å"Maori Way† the punishment wasn’t bad like the puritan. In the â€Å"Maori way† instead of sending him to jail they gave him a second chance to change. In the Maori Way it more about in the justice side because they didn’t put him in jail or kill him they gave him a chance to pay back his grandmother by getting a job and cooking for her. in the Maori Way the kid learns from his mistake which is the whole point of punishment. The old puritan society the punishments dealt to those who committed crimes were harsh.The puritan’s punishment’s had shame in it as part of the punishment. In the novel by Nathaniel Hawthorne wrote â€Å"The Scarlet Letter† as a story shame and guilt, and how they affect people in the town. Nathaniel Hawthorne intended Hester Prynne's punishment to have to personify her guilt towards herself. It also shows how she responds to the guilt when she faced it. It is also expresses how often guilt can rip people apart from the inside out. The main protagonist was given a shameful punishment for committing adultery.In her case she was given a scarlet letter â€Å"A†. Puritans practice is very strict religion they believe that god has chosen who will go to heaven and hell from before birth and that the only way to ascend to heaven is to be the best person you can be. The death penalty is the short way out and it also does not solve the problem. By killing the person he/ she doesn’t learn anything for suffer. By killing someone will not bring back the person or really get you closer. And who are we do decide who gets to like or not.

Although continued industrial development is important and Essay

Although continued industrial development is important and inevitable,companies must take care of the environment in the process - Essay Example Environment protection is the method of preserving the natural environment regarding the interests of the stakeholders, including customers, employees, government and the other influencing bodies with utmost priority. It has often been argued in this regard that the pressure of over-population (allegedly encouraged by business sector growth within a given region) and continuous industrial development acts as the main determinants of environmental degradation (Tamazian and Rao 4-6). Subsequently, such external pressures in terms of the social responsibilities of the corporate bodies have recently been motivating them to go greener by lessening their rate of environmental degradation and at the same time, ensuring continuous growth to meet the customer demand to achieve economic development. Hence, a two way prolonged approach has to be followed in parallel by companies in the modern era. By following steps like switching from non-renewable sources of energy to renewable sources, targe ting cleaner and hygienic production procedures, reusing wastes and implementing strategies that focus on environment friendly product designing, an organization can easily maintain the sustainable growth (Koh, Ghazoul, Butler, Laurance, Sodhi, Mateo-Vega and Bradshaw 67-71). THESIS STATEMENT As can be observed from the above discussion, companies are certainly witnessing pressure to consider environmental sustainability with almost equal and even at times with more importance than their profitability concerns, in the advent of continuous industrial development. This thesis will correspondingly, aim at assessing the need for taking environmental care measures by companies and the associated challenges, by synthesizing on the argument that â€Å"Although continued industrial development is important and inevitable, companies must take care of the environment in the process†. NEED FOR ENVIRONMENTAL CARE FOR COMPANIES IN CONTINUED INDUSTRIAL DEVELOPMENT The series of debates emp hasizing industrial development implications on the natural environment in the forms of deforestation, climate change as well as air and water pollution has apparently contributed to the need for environmental care within the modern organizations (Esty & Winston 7-12). From a generalized point of view, it has been argued in the recent era that as a consequence of industrial development at a rapid and a continuous rate, need for resources among companies have also increased manifolds. In order to suffice this growing need for resources, especially energy resources and natural ingredients, companies have been sourcing large amounts of these assets from the environment. Such extractions have further resulted in various environmental challenges, majorly attributed in the form of climate change, unsustainable minimization of natural resources and imbalances in the biological cycle on earth (Esty & Winston 35-40). For instance, Geist and Lambin argues that the major proximate causes of en vironmental degradation through deforestation as a consequence of industrial development are unplanned agricultural expansion, irresponsible wood extraction and infrastructural expansion through building roadways and city areas in support of urbanization as observable in Africa, Asia and Latin America (5-15). Subsequently, these risk factors have been inhibiting the stability of the

The Black and the Blues Research Paper Example | Topics and Well Written Essays - 1000 words

The Black and the Blues - Research Paper Example † which depicts the distinct difference between their personality and insights can be considered as the focal points of the story. Truly in the trajectory of life, people are pushed and weathered with numerous battles either economically, personally, socially, or conflicts within the family. Through these most who prefer to stay on the safe side, surrender and be submissive to what is dictated by the society as they deem that this is a more practical and rational path to take. For the other free spirits, they opt to follow their dreams no matter how surreal the idea may seem yet for them it is something worth believing and following. Baldwin’s story though written in 1957 depicted a crucial message on bitter realities within the society which strongly affected him and the black community of his time and still somewhat remained unchanged in some parts of the world today. The story focused on the narration of an algebra teacher in Harlem who struggled to earn and maintain a middle class status and keep his wife and kids on a safe part of the society; and his antonym relationship with his brother Sonny, a man who elected to navigate the road less traveled and pursued to become a jazz pianist though ended up behind bars from possession and addiction to heroin. Trimmer and Urbana (p.165) discussed that the differences between the brothers represent the division within the black community where the narrator represents the middle class men who strives to live the American dream and aspires for an improved standard of living in the United States; while the other group, as represented by Sonny, are those who just accept the fact that they will forever be locked up from the privileges the white people savor. Take note that the setting happened on a post war as the narrator cited his military service to the US government. It is an era where people, particularly the blacks, are rallying for equality and their war against racism. The narrator tried to understan d his brother and struggled to reach out to find answers to his questions though remained blindly to accept the truthful answers. The story reminds us on the importance of listening and true understanding in every form of relationship and in using these rather than coercion or rigid authority. There was a scene in the story, after their mother’s funeral, when they discussed the future of the teenage Sonny. There was tension between the brothers as Sonny declared that he wants to be a jazz musician while the older brother sees that dream to be irrational. This scene together with the one when he offers his wife Isabel’s place to be Sonny’s home manifests the narrator’s sense of responsibility to his younger brother’s welfare. Throughout the story, issues on racism and inequality were strongly reflected. During his time there was strong discrimination for the black people in the racist America. On strong reflection of Baldwin’s personal strugg le is the part of the story where the narrator recollects the death of their uncle who was driven over by a group of drunken white Americans and recklessly left the carcass on the street. Depression from racism was not confined to the character’s family but it extends to the entire black community during that time (Reilly 56). Baldwin succeeded in

Music in the Afro Brazilian Religion Candomble Research Paper - 1

Music in the Afro Brazilian Religion Candomble - Research Paper Example This "Music in the Afro Brazilian Religion Candomble" essay outlines the characteristics of Brazilian religion. The features included in the religion include vigorous rituals and music that are very imperative in its development. The Capoeira is one recognized art in the Afro Brazilian setting that has the combination of music and dance. The specific ritual is martial art created in Brazil by slaves of the African continent and characterized by very fast and swift moves that are rather complex for anyone not well trained to comprehend. The power exerted in the dance is vast and thus for a person to perform the art well, strength is an important factor. One of the instruments used in the Capoeira is the berimbau. The instrument has its importance in that it brings out the rhythm of the songs in performance. Rhythm is an integral part of the ritual and without it; there can be no sense of dance in the music played in the Capoeira. The berimbau is not the only instrument played in the Capoeira but rather one of a set. The set is arranged in a row where there are three berimbeu, an agogo and two pendeiros (Rohrig 167). The full formation of the set is very important in that each of the instruments has a role that it plays in the completion of a perfect Candomble dance. All the instruments are supposed to follow the formation of the rhythm of the berimbau. The songs played in the Capoeira have different themes and purposes. There are also the songs played in various games in an effort to boost the morale of the players.

Not all Women experience oppression in a uniform way Research Paper

Not all Women experience oppression in a uniform way - Research Paper Example xperience, there is evidence that colored women have experienced the severest form of discrimination in countries such as Canada, and the White women are treated far much better. The history of gender disparities is historical and has punctuated the history of the world. Men have consistently resisted the struggle of women to take up senior positions within the community, and there is evidence that different societies have resisted differently. From this perspective, it is clear that different women have experienced oppression in different proportion and that men have been behind this ordeal. The idea that women are the enemies of their empowerment is acceptable to some extent but only contributes to a small proportion of the problems that women have encountered. Conventional politicians criticize the politics of sisterhood on different relative grounds. They argue that by encouraging women to identify their lives as shaped by patriarchal oppression, feminism has produced images of women being victims outside the forces which have consequently denied their critical involvement in most decision-making processes. Bacak (164) believes that by assimilating the differences between women into a sisterhood of common, shared experiences, power relations between women are under-theorized. Both limited and distorted analyzes of gender are in play. Convincingly, it is notable that contemporary feminists criticize the second wave of politics that promote women as victims (Crenwshaw, 2). The critique, in this case, frustrates the perceived inability of second wave feminists to explore and celebrate womens agency instead of presenting women entirely as victims of masculine prejudice. The critique stresses that women shared status as victims’ acts as a key rhetorical role in generating believes of unity and sisterhood. Nonetheless, Kirkland (89) notes a second wave of feminist driven ideology encourages a gender power relation predominantly altering the difference between men

Bonds Essay Example | Topics and Well Written Essays - 500 words

Bonds - Essay Example Bonds carrying premium are issued at a price above the face value of the bond whereas bonds issued at discount are normally below the face value of the bond. There are various reasons as to why the bonds are normally issued at face value, or at discount or at premium and this largely depends upon the different circumstances. If the overall reputation and creditworthiness of the firm is relatively good in the market and investors have relatively better expectations of the future performance of the firm than the firm may be able to sell its bonds at premium. Selling on premium may also be because of the fact that existing bond issues having similar risk characteristics may be offering lower interest rates therefore by if the issuer is willing to offer higher rate of return to the lenders than it may be possible that the bond will be issued at premium. Similarly, bonds may be offered at discount because issuing firm may not enjoy the relatively better credit ratings in the industry and investors are not willing to put more money into the firm. Selling at discount can also be due to the fact that overall yield offered by the bond may be significantly lower than the existing bonds of same risk category thus investors, in order to get compensated for the opportunity forgone to earn higher interest demand from issuing firms to offer their bonds at discount. (Navarro, 2003) Finally issuing bonds at face value indicates the indifference of the investors towards the company i.e. investors may not have relatively more trust in the future prospects of the company and may be expecting to earn normal rate of returns on their investment. Selling at face value does not however mean that the firm is not doing well or may be facing difficulties in future but in actual it indicates the ability of the firm to match its offerings according to the market expectations. There are different reporting requirements for bonds issued at premium, discount and face

Environmental Science- make up a hypothetical disaster scenario Essay

Environmental Science- make up a hypothetical disaster scenario - Essay Example This plate is not static as it moves about ten centimeters annually hence forcing its way under the South America continental plate (U S library of congress n.p). Such telluric dislodgment resulted to the Trench in Peru and Chile thereby making the country prone to earthquakes as the Nazca plate causes high stress beneath Chile. Additionally, about 50% of the nation’s terrain is mountainous and the nation’s citizens mostly live near these mountains. In relation to the issue of possible contamination, water contamination and chemical contamination are possible (U S library of congress n.p). During this disaster, the country was subjected to sudden earthquake of about 9.0 richter scale. This earthquake was more than any other experienced in the area in the recent past. On this occasion, the earthquake was so great that the high stress beneath the land caused buildings to sink as soil liquefaction occurred. During such a strong earth quake, the water and the soil mix thereby making the ground very soft and act like a quicksand. Since the South American arc extends over 7000 km from the Chilean margin and the Panama fracture zone along a triple junction (Embassy of the United States n.p). This junction marks the plate boundary between sub-ducting Nazca plate and almost static South American plate. At this point, Nazca plate’s oceanic lithosphere and crust underlie the South American mantle hence causing earthquakes and active volcanic along the deformation. This form of an earthquake was recently experienced in Japan on March 11 2011 resulting to massive damage inc luding infrastructure and damage to several Nuclear power plants (U S library of congress n.p). The main role of public health professionals is to ensure that the negative consequences associated with such an event are minimized through evacuation, in a place around the site. In terms of health, gas leaks are a very likely either a natural gas or as gas used for

Open Table System in Blackshop Restaurant Coursework

Open Table System in Blackshop Restaurant - Coursework Example The Cerny brother emphasized on the concept of human tough and considers the tremendous success of the restaurant for the same. However, it is seen that extensive work done manually gives rise to mistakes which consequently affects the quality of services and impacts on the revenue too. The project makes an analysis of the present conditions of operations for the restaurant. Based on the above it puts forth reasons why an online reservation system called Open Table must be incorporated. The relative advantages of doing the same are presented in the project. Finally, a suitable operational strategy has been recommended in the project. This includes the market analysis, marketing, and advertising plan, reservation system, and operations for the restaurant. The quality of services and the role of the front office staff have also been highlighted in this regard.In order to know whether the Open Table system should be incorporated into the organization, it is important to understand the f unctions of the system and its relevance in the organization. Open Table was established in the year 1998 and operated a website which connected numerous reservation-taking restaurants and customers who dined at the restaurants (Huber, Larmaraud, Li & Williams, 2009, p.1). Open System is a reservation, guest management, and table management software designed for the restaurants. The software and hardware systems of smoothened the process of automation of reservations, table management by replacing the conventional methods of reservations by restaurant hosts and hostesses using pen and paper. The system is used by users for the construction of customer databases which fosters guest recognition and allows targeted e-mail marketing. Moreover, the open system also helps the restaurants to save cost and time, improve their services, attract businesses, and increase revenue in terms of the numbers of diners and also improve efficiencies with tools of table management. The system was prima rily aimed at the independent restaurant groups, restaurants, hotels and resorts. The system has been adopted by numerous customers across different nations like Canada, United States, United Kingdom, France, Germany, Japan, and Spain. The main advantage offered by the system is that it allows its users to allow electronic reservations using their website.

Business Plan Issue Essay Example | Topics and Well Written Essays - 1000 words

Business Plan Issue - Essay Example A few years ago I did some consulting work for a family member that was starting a new company. The firm needed help creating an implementation plan on how to reach the commercialization phase for a new product the firm had developed. The company had already submitted a pre-patent application and the lawyers believed that that the chances of getting the patent approved was very high. Legal protection was one of the variables that were holding back the full launch. Another problem the company faced was a lack of capital. The company had been incorporated for over a year and half doing research and development without generating any revenues. A lack of operating cash led to the failure of the business. This company in its early stages needed a better implementation plan with a better timeframe and action plan. DQ3 The reason most risk management fall short of expectation is because they lack sufficient scope. A lot of managers do not have a clear understanding of all the business risks that can affect a company. For instances variables such as foreign exchange rate are not considered by many when in fact this variable can influence businesses that make many recurrent purchases of materials from foreign distributors. The risk profile of an industry changes and many managers do not keep up with current events sufficiently to realize the new risk variables may affect an industry. For instance the arrival of a wave of new green cars will adversely affect the production of pickup trucks and SUV automobiles. 4. The learning curve has many practical implications for the labor force of a business. Companies that establish themselves in an infant industry are not able to benefit from the virtues of the learning curve. On the other hand firms such as Coca-Cola have gained dominance in the market through years of experience that has enabled the firm to become an expert in the beverage industry. When a company is the first to enter a marketplace they can use that strategy as a tactical advantage to achieve higher market share. Resistance to change can slow down the employee adaption process to a new working environment. 5. I agree with you that planning on many occasions is a weak area on many firms. Not only do companies do not dedicate enough time and money into planning, they also fail to recognize that planning is not limited to the short term. Companies must develop strategic plans five to ten years into the future. I believe that Microsoft when it releases a new product already has the p lans ready for the next generation product that will replace the product that is being introduced. I also agree with you that high moral and ethical standards must be implemented into plans. Back in the late 1990’s a lack of ethics led to the Nike sweatshop fiasco. 6. The use of guidance should be followed to spread the use of strategic thinking within a corporation. Your statement about many firms formulating unrealistic vision statements is also true. Sometimes mission and vision statements are used as publicity acts. I would imagine that Enron had a positive mission statement that was obviously not followed by the corrupt executives of the company. Teamwork is a critical success factor in the business environment of the 21st century. Multi-national corporations must be run efficiently in order to maximize

Back yard burgers †the business model Essay Example for Free

Back yard burgers – the business model Essay

Analysis of Nietzsche’s Genealogy of Morals

Analysis of Nietzsche’s Genealogy of Morals When God died, what happened to the people? Therefore neither can an animal move about in the closed as such, no more than it can comport itself toward the unconcealed. The animal is excluded from the essential domain of the conflict between unconcealedness and concealedness. The sign of such an exclusion is that no animal or plant â€Å"has the word. (Heidegger: 1992:159-60) The concealed in Heidegger is that which conceals from us it’s being. What emerges in Heidegger, in his pursuit of this clearing, is the slim line – the slippery border, between human and animal. The animal in Heidegger cannot see the sun as it rushes towards it: it can never dissocial the sun as a being. It is at once open and non-open, or rather, it operates in an ambiguity between the two fields. Man in Heidegger becomes that which is produced precisely at this border: at the moment of caesura and articulation between human and animal: it is this that passes for man, and it is this than expresses well the relationship of man to language. Man is never outside language: language is always already expressed as a radical exclusion of that which is not which operates as a fundamental category of exclusion(Agamben: 2004a: 91) The last century and a half have been full of attempts to move outside of language: to pass into new notions of subjectivity that move outside of what it is to be human. Nietzsche’s attempt to destroy traditional notions of subjectivity stands out as a crystallisation point in a process that sees Delouse, Foucault and Derrida, to name the three philosophers this dissertation will discuss, move outside notions of the human trapped within language and the creation of the subject. In doing so they criticise a notion of the subject trapped within binary constructions and the hierarchical notions of the subject that one finds in Hegel; in doing so they echo the criticism of Christianity that Nietzsche made. This dissertation will analyse the reasons for which Nietzsche attempts to destroy the traditional notion of the subject and replace it with a particularism notion of the subject: forever in astute of becoming that escapes binary configurations. We will evaluate to what extent he was successful in his enterprise, and what type of subjectivity was brought forth. In analysing the ways in which Deleuze,Foucault and Derrida take up his project, we will analyse a genealogy of thought that attempts to successively move beyond what we understands human. These three methods open up a series of liberating possibilities to philosophy and politics, and the configurations of these possibilities we be analysed. However, in the radical indeterminacy of Derrida, in the pessimistic, frantic activism of Foucault, and in the schizo-analysis of Delouse we can detect the same problem that we find in Nietzsche: at work in him is that oblivion (or as Bataille would term it, that excess) â€Å"which lies at the foundation of the biologist of the nineteenth century and of psychoanalysis† and what produces â€Å"monstrous anthropomorphization of†¦ the animal and a corresponding animalization of man† (Heidegger: 1992:152). Heidegger still believed, as none of the philosophers considered in the dissertation do, in the possibility of a good project of the polis; that there was still a good historical space in which one could find a historical destiny grounded in being. He, later in life, realized his mistake. In this, he comes toe point where his criticism of Nietzsche becomes most pointed. Nietzsche’s eulogisation of man is that which pre-empts the emptying out of value we find a man at the end of history. Nietzsche is blind to what the caesura of naming man as such might mean: in doing so, and in asserting the gelatinisation of the truth of the polis, the ambiguous border between man and animal collapses. It is precisely the â€Å"essential border between the mystery of the living being and the mystery of what is historical† (Heidegger: 1992:239) that is not dealt with by Nietzsche’s work and it is thus constantly exposed to the possibility of an â€Å"unlimited and groundless anthropomorphization of the animal† that places the animal above man and makes a ‘super-man’ (ibid:160) of it. Life becomes reified over and above the precise condition of its existence; that very condition which makes it always already in dependency on those very grounds of its existence. We will find this same problem repeated in Foucault, who in his criticism of the construction of the subject in modernity illustrates the way in which modern notions of sovereignty act directly on the bios of modern man; this is where modernity begins to act on animal life(this time where equivalence has rendered the possibility of time null)and what is at stake in the construction of the subject is the possibility of his life. Yet, Foucault, like Nietzsche, illustrates this genealogy of dependence without being able to elucidate its historical specificity, which is in its construction of a zone of exclusion at the basis of ontology itself (this can be seen in Foucault’s error in treating bio power as a modern phenomenon). This same problem is manifest in the differ and of Derrida, and in Deleuze’s notion of the organs without a body: each in turns finds itself the symptom of the radical historicism. Each proclaims this symptom a cure, without realising that the cure they offer is precisely that which is the symptom. In all these theorists what this amounts to is misunderstanding of the nature of language. Thus, while Nietzsche manages to destroy stable notions of the subject, the unstable notion he replaces them with, while apparently liberating, exists within the same binaries he seeks to destroy, and moreover, allows for the exactly the same herd instinct that he seeks to overcome. I. Why I needed to kill God I.I We see ourselves in every mirror What, in all strictness, has really conquered the Christian God? (†¦) Christian morality itself, the concept of truthfulness taken more and more strictly, the confessional subtlety of the Christian conscience translated and sublimated into the scientific conscience, into intellectual cleanliness at any price. To view nature as if it were a proof of the goodness and providence of a God; to interpret history to the glory of divine reason, as the perpetual witness to a moral world order and moral intentions; to interpret one’s own experiences, as pious men long interpreted them, as if everything were preordained, everything a sign, everything sent for salvation of the soul that now belongs to the past, that has conscience against it†¦. In this way, Christianity as a dogma was destroyed by its own morality†¦. (Nietzsche: 1969:160) Nietzsche’s Genealogy of Morals outlines the way in which Christianity formulates its notion of the subject. The Christian super-ego is posited as salvation, as the point towards which one works. Thus, the Christian subject exists as, first and foremost, alack: it is not what it wishes to be. Yet, as Nietzsche points out, this lack is a condition and construction of the subject within Christianity: one resembles oneself and yet in order to find deliverance must become more of oneself and in doing so one finds justification for the present order of things. The Christian superegos to be found in God, and then, surprise, surprise, the Christian ego can be found placed in the soul of the body. This parallels the analysis that Foucault makes of the subject (1999, 1975). The law construct the subject as normal (and in doing so sets up an exclusion of the abnormal, or that which is not: that which has no voice – icon-human) and in this process creates a desiring-subject, who desires what the law has not given it. Yet these desires are what are created by the notion of the subject placed upon one: one is created absent, oars not that, not this, but always awaiting a day when one can be called by a proper name. It is this awaiting a proper name that Nietzsche attacks most strongly, and in this theory of language we shall see Nietzsche allows no place for such a proper name. A proper name relation, Nietzsche argues, is always a relationship between a creditor and a debtor; it is always typified by the dependence or lack, and as such prevents the possibility that of morality to be free and joyous. Nietzsche though, and is not commented on very much, reserves some tender thoughts for Christianity. It is a primal Christianity, a Dionysian Christianity, that Nietzsche can endorse. As much can be seen in the quote that started this section: Nietzsche’s criticism of Christianity should not be seen to be limited to Christianity. Rather, it extends to all relationships of debt and obligation to a structuring super-ego. It was not Nietzsche, he claims, that killed Christianity, it was Christianity itself, and Nietzsche loathes the nihilism that replaces it just as much. We can discern three criticisms of Christianity/nihilism in the quote that started this dissertation. Nietzsche elaborates that one of the structures of Christianity is the idea of a puritanical truthfulness, which has been sublimated into scientific consciousness. Nietzsche’s primary criticism of this truthfulness is that is relies upon a correspondence theory of truth: it requires an external state that can be matched in some way to an internal state (which then requires a subject to have such an internal state). For Nietzsche, consciousness created in such a way in simply ashram, an intentional lie: consciousness lies free and unbounded – it has no centre around which it can orientate itself. Furthermore, the mapping between a real world of existent things (Kant’s ding an such)and a subjective world of language is not possible. It is not possible because language only ever refers to itself. To use Saussure’s(1995:12) terminology, a sign can only have meaning within another setoff signs; it has no essential relationship to the world that is signified. A correspondence theory of truth attempts to hold up astatic a world that is in constant flux and in doing so negates the possibility of human freedom, which Nietzsche opposes to belief. The importance of this critique of the Christian subject will be returned to later in the dissertation when we consider Nietzsche’s theory of language. The second crucial critique of Christianity made in the quote that begins this dissertation is of history as possessing meaning, as divine providence being read into history as if it were a series of signs. This resembles the structural properties of psychoanalysis that Delouse(1983a, 1983b, 1984) was so devastatingly to criticise. One can read one’s entire life as a history of redemption, as Benjamin (1986:112)comments. In this reading, every moment of one’s life in which one fails, feels regret of guilt because one is not conterminous with the notion of the subject given to you, can be read as a sign of messianic moment to come: it is to deny the contingent and necessary existence one has in favour of a reified notion of being that removes life from life. Nietzsche realises that such a realisation about life is scary, and he realises that people will cling onto a Christian notion of belief even if it has no rational foundation: that is why in Thus Spoke Zarathustra (1 969) he attempts to convince people through rhetoric rather than argument. Several elements of Nietzsche’s thought here are important to note. While he attacks Christianity, in the long quote we started the section with he already observes that the technological-scientific paradigm replaces Christianity while adopting all of its tenants. As Nietzsche(1974:108) comments: â€Å"after Buddha was dead, his shadow was still shown for centuries in a cave a tremendous, gruesome shadow. God is dead; but given the way of men, there may still be caves for thousands of years in which his shadow will be shown. -And we- we still have to vanquish his shadow, too.† Science is this shadow: it refuses an engagement with the world in favour of a mystified detached observer who can sit back and observe the world rather than engage within its context. This DE contextualisation actually ends up relativizing the world. This is a radical historicism that believes the role of the pasties to come to the rescue of the future: temporality is shortened tallow only a pre sent, an immediate process of desiring-lack and sustenance. It allows for the feigned equivalence of all men, as they are all equal as subjects, and as all in this equivalence all notions of importance and goals are emptied of meaning by an effectively moribund set of values that deny life in favour of a search for authentic experience. This search for authentic experience is termed active nihilism in Nietzsche: it is an attempt to confront the emptiness of value categories with frenetic action: this is what Size (2001:48) calls the passion for the real: the passion for frenetic experience that ultimately culminates in its simulacrum. It culminates in its simulacrum because the passion for the real (as opposed to the empty appearance people inhabit) eventually becomes the passion for the real without risk – for one only risks if there is something one is willing to die for: for Nietzsche the chance and contingency of the eternal return – and thus we see the Nietzsche an concepts of passive and active nihilism end up, in late modern capitalism, becoming one. We can see that the co-existence of what we could term the correspondence theory of truth and the history as destiny theory (where everything is able tube reconciled to the present) inevitably end up in this structure of nihilism. Both of these theories rely on several underlying structures of thought that Nietzsche was also quick to criticise in Christianity. Innis analysis of the origins of Christianity, he notes (1956:112):â€Å"Christianity was from the beginning, essentially and fundamentally, life’s nausea and disgust with life, merely concealed behind, masked by, dressed up as, faith in another or better life.† Christianity was always underlined by a series of binary logics: this is not the right life: this one is better; hate: love, God: Satan. It is this binary thinking that comes in for a huge amount of criticism from Nietzsche. It is these binaries that ignore that the world is in astute of becoming, that it is forever in a state of flux. Nietzsche notes (1966:12): â€Å"it may be doubted, firstly whether there exists any antithesis at all, and secondly whether these popular evaluations and value anti-thesis, on which the metaphysicians have set their seal, are not perhaps foreground valuations, merely provisional perspectives. â€Å"Therefore, Nietzsche’s criticism is not simply of our values, as we have seen in the previous paragraphs, but of the way in which our values are constructed. Nietzsche’s theory of language illustrates that each of the terms in binary series is dependent on the other. Butler (1990,1993) undertakes similar enterprise inspired by Nietzsche when she investigates the dependency of the category women on the category man and vice versa. Power is exercised, Nietzsche understands, in the formation of the very categories themselves, not merely in the ascription of certain people to good and certain people to bad. It is a mistake to fight for the category of lack, because the detestable thing is the very category: by fighting against the lack (e.g. of women for rights) one is accepting the terms of the herd mentality; that one must accept the givens of the situation and its binary categories. This is why a genealogy of morals is necessary, to (Butler: 1990:ix)â€Å"investigate the political stakes in designating as an origin and cause those identity categories that are in fact the effects of institutions, practices, discourses with multiple and diffuse points of origin.† Such pursuit unseats the claim of a binary logic to an objective reality: they show them as temporal formations that constitute a world for the subject. However, such a world is always shot through with lack. One can illustrate this using Alcan’s (1981) theory of mirrors, which he derives from Nietzsche’s view of the subject. In Alcan’s view, one is never identical to the role one has been assigned in life. The social formation of life (which is an appearance) is full of inconsistency and incompleteness. As Christina Wolf (1980:151) comments in her novel: Nelly couldn’t help it: the charred building made her sad. But she didn’t know that she was feeling sad [my emphasis], because she wasn’t supposed to feel sad. She had long ago begun to cheat herself out of her true feelings†¦.Gone, forever gone, is the beautiful, free correlation between emotions and events†¦. It wouldn’t have taken much for Nelly to have succumbed to an improper emotion: compassion. But healthy German common sense built barrier against it: anxiety. The character Nelly feels the dissonance between the world she is in and the world she experiences: she experiences anxiety over it. Such anxiety is the mark of the problem of binary categorisation. This categorisation does not resemble the world, which is in flux, but it places over it a series of categories that are power relationships designed to constitute you as a subject. We can perhaps draw a parallel here between what Nietzsche analyses in his philosophy of language as the productive power of the grammar of an age and what Laplace(1989:130), following Alcan, calls the source-object of drives. These unconscious formations are an encounter between an individual whose psycho-somatic structures are situated predominantly at the level of need, and signifiers emanating from an adult. Those signifiers pertain to the satisfaction of the child’s needs, but they also convey the purely interrogative potential of other messages—and those other messages are sexual. These enigmatic messages set the child the difficult, or even impossible, task of mastery and symbolization and the attempt to perform it inevitably leaves behind unconscious residues†¦. I refer to them as the source objects of the drives. What one must be careful to do here is to distinguish between the early Nietzsche and his later work. In early work such as the Birth of Tragedy (1956), Nietzsche can still talk about an essential essence that the Christian or Apollonian reasoning hides. In his later work he fully endorses the view that consciousness is but surface: a radically anti-essentialist position that refuses the possibility of an outside of language or of consciousness. There is then, no real that one can break through the appearance to get to, as one might in psychoanalysis. However, that does not necessarily mean the psychoanalytic reading were doing here is incorrect. Laconia analysis departs from the Freudian analysis that Delouse criticizes in its conception of the subject. For Nelly, the character in Wolf’s novel, the state fore-anxiety might be referred to as true, but a sense of what it is would be to call it uninhibited: free from the strictures of power. In the later Nietzsche, the ability t o escape the possibility of the subject is ambiguous. What Nelly asks for is not an absolute escape, as Laplace does not ask that the child can master the symbolization of his parents and escape the drives. Rather, what is inferred is continual tension and thrust against that which claims to be objective and masks desire, put in a Delusion idiom: it is the consistent schizoid refusal to stasis. As such, it parallels the construction of the subject in Foucault. Like Nietzsche and Butler, Foucault performs a genealogy. Like the later Nietzsche, Foucault realizes the impossibility of breaking through language. One is always already constructed as a subject: any attempt to break out of this trap relies on an exterior moral framework that simply replicates the binaries of an existing power discourse. Foucault (1979:178) notes that â€Å"discourse creates the object of which it speaks.† Discourse gives rise to a subject, and an attempt to break out of the subject through a call to a value (such as revolutionary purity, truth) falls into the same power trap as existing political discourse. What Foucault and Nietzsche both call into question is the notion of valorisation itself: that which always assumes a dichotomousbinarisation. However, rather than placing their project within an appeal to the real outside of language, both claim the most one can does attack language thro ugh language. This task means to constantly reveal that which appears as objective as actually a temporally structured mask of power. Thus for Foucault (1984:217): The real political task in a society such as ours is to criticize the working of institutions which appear to be both neutral and independent; to criticize them in such a manner that the political violence which has always exercised itself through them will be unmasked, so that one can fight them. This task has no end or limit: indeed, an end or limit is part of the notion of the structure of power; that there is this goal that you must attain, that you are not this, though at a certain point you may indeed attain it. We can see such notions of end goal rely on the interpretation of history as divine providence (or in the secular historicist version, history being called to the rescue of the present)that Nietzsche was so quick to criticise as ignoring the contingency and chance of existence. Both of these parallel Deleuze’s criticism of hierarchical structure as that which inhibits desire and presses it into the service of power. What this entails is not simply the refutation of God at the centre of the world, defining the notion of our being. It is a refutation of a centre of the world. Secularism simply replaces God with man, and declares that the self-autonomous mains that which defines our values, when we do not act in a way accorded to by the hegemony, then it is u s who are lacking. Thus, Nietzsche(1962:346) makes a comment much like Marx when he says â€Å"we now laugh when we find ‘Man and World’ placed beside one another, separated by the sublime presumption of the little world ‘and.’ Thus, in Nietzsche it is not simply Christianity but its zombie replacement rationality that needs to be criticised. Foucault continues this task in The Order of Things (1994), attacking the Human account of causality and truth than requires a one to one mapping between things and their referents. This criticism is possible because, as Nietzsche notes (1968:616) â€Å"the world with which we are concerned . . .is not a fact . . . it is in flux, as something in a state of becoming, as a falsehood always changing but never getting near the truth: for—there is no truth.† This is the strongest statement of Nietzsche’s project. He wants to undermine the notion of truth and reveal it for a set of power constructions and particularities. With the notion of truth, the notion of the proper name (the proper place for the human subject) becomes impossible, and what opens up is decentred multitude of consciousness like that which Delouse (1980:332) outlines in Mille Plateaux . This project would have what is productive as that which is nomadic, which refuses all forms of hierarchy in favour of that which is additive. To carry out such project it is necessary to destroy the possibility of belief. I.II Our beliefs are our weakness If there is today still no lack of those who do not know how indecent it is to believeor a sign of decadence, of a broken will to livewell, they will know it tomorrow. (Nietzsche: 1990:3) For Nietzsche, belief requires something outside of oneself. Indeed, belief can be understood as the opposite to freedom in Nietzsche’s thought. To believe in something is to believe in what that thing has made you into: it is to believe that one has something internal (belief) that can be referred to the world. As Nietzsche notes (ibid:347): Once a human being reaches the fundamental conviction that he must be commanded, he becomes a believer.’ Conversely, one could conceive of such a pleasure and power of self-determination, such a freedom of the will that the spirit would take leave of all faith and every wish for certainty, being practiced in maintaining himself on insubstantial ropes and possibilities and dancing even near abysses. As we have noted above, it is not enough to simply get rid of God. What happens to the people after we get rid of God? They run together, as a herd, scared, into other formations of command, such as nationalism. It is interesting to note here Foucault’s comment, that the challenge of nationalism (1994:228) was to â€Å"establish a system of signs in congruence with the transcendence of being.† It was to believe in a new grammar that replaced the old certainties of life with new certainties: the certainty of the glory of the death of the unknown soldier for the transcendent nation. That is why Nietzsche says,(1990:15): â€Å"we are not getting rid of God because we still believe in grammar.† Nietzsche’s real challenge is almost a challenge against language: it is an attempt to consistently run up against the limit of language and refute its hegemonic possibilities (e.g. in the distribution of tenses) at every turn. A grammar forces one to give lie to a real ity: the only such lies Nietzsche thinks are acceptable are innocent lies, those lies that enable communication in contingent fashion, that are not totalising and do not exceed the moment of their own expression. What happens with the new certainties is that they still rely on a concept of will. They ask one to partake in a world in which one is necessarily excluded (you are not this, yet†¦). For Nietzsche (1924:14),to believe in the will is to believe â€Å"every individual action is isolate and indivisible .† Thus runs counter to the idea of flux Nietzsche takes from Heraclitus. Actions are not simply formed but are always already part of a social world that means individual isolatable action is impossible. As is thinking. Thinking (Nietzsche: 1968:477)â€Å"as epistemologists conceive it, simply does not occur, it is a quite arbitrary fiction, arrived at by selecting one element from the process and eliminating all the rest, an artificial arrangement for the purpose of intelligibility.† This process of intelligibility constructs a world in which one is dependent on the process of selection: thought, like and will, becomes a tool to be used: a means-end relationship that requires the a priori separation of subject and object, thought and world, that Nietzsche so convincingly refutes. He notes (1990:54) that â€Å"the man of faith, the believer of every sort is necessarily dependent mansuch as cannot out of himself posit ends at all. The ‘believer does not belong to himself, he can be only a means, he haste be used, he needs someone who will use him.† In the hands of God, or secularism, agency is always placed outside yourself in the objective world that you lack. The weak believer who does not think that he wills(which is already a mistake) at least (ibid: 18) â€Å"puts a meaning into them: that is, he believes there is a will in them already (principle of â€Å"belief†).† To change this it is not enough to attack reason (as Adorn and Horkheimer do in The Dialectic of Enlightenment [1972]) but to attack the notion of the instincts. Instinct, while normally associated with that which is most natural, is in Nietzsche a product of discourse and habit over centuries, it is an unthinking subjectivity masquerading as the natural order of things. It is given by the law, and (Nietzsche:1990:57) â€Å"the authority of the law is established by the thesis: God gave it, the ancestors lived it.† To free habit, as we noticed earlier, requires not an attack on reason but an attack on habit, on unreflexive action: we need to liberate man from cause and effect. This task requires that man be liberated from the notion of the name. As Nietzsche (1956:20) claims: The lordly right of giving names extends so far that one should allow oneself to conceive the origin of language itself as an expression of power on the part of the rulers: they say this is this and this, they seal everything and event with a sound, as it were, take possession of it This feat requires a liberation from language. Here Nietzsche is at his most powerful, for he realises that it is in the very nature of language itself that the origin of power lays. Indeed, there is strong correlation between the attack on the sovereign in Nietzsche and Foucault and Saussaurian linguistics. In both the argument relies on the non-relation between signs and what they represent, and yet the continued claim of signs to be coterminous with what they represent, taking possession of it. Against this, Nietzsche wants to liberate us from names (1990:8). That no one is any longer made accountable, that the kind of being manifested cannot be traced to a cause prima, that the world is a unity neither as sensorium nor as spirit, this alone is the great liberation. This flux of things, clearly prevents the emergence of a subject: consciousness here, and for Nietzsche’s thought as a whole has, has no predetermined pattern. What we need to fight, for Nietzsche, is the giving of the pattern, the idea that the whole is no longer whole(1974:22). What is the sign of every literary decadence? That life no longer dwells in the whole. The word becomes sovereign and leaps out of the sentence, the sentence reaches out and obscures the meaning of the page, the page gains life at the expense of the wholethe whole is no longer a whole. I.III The Grammar of the Age, or how I learned to love the Word Life (Nietzsche: 1990:11) is a â€Å"continuous, homogenous, undivided, indivisible flowing.† For it is not the world that is simple and exact(what one could call the assigning of the world to the word: or to its lieu proper), rather through words we â€Å"are still continually misled into imagining things as being simpler than they are, separate from one another, indivisible, each existing in and for itself.† When Nietzsche writes this, he has abandoned the distinction between the apparent and the real world. There is no ideal for (ibid: 6): â€Å"with the real world we have also abolished the apparent world.† Such a world allows no notions of predestination, and no correspondence theory of truth. Anyone who speaks of such things is a liar (ibid: 38): One must know today that a theologian, a priest, a pope does not merely err in every sentence he speaks, he liesthat he is no longer free to lie innocently, out of ignorance. The priest knows as well as everyone that there is no longer any God, any sinner, any ‘redeemerthat free will, moral world-order are liesintellectual seriousness, the profound self-overcoming of the intellect, no longer permits anyone not to know about these things. What do we replace this met discourse with? We cannot replace it with a singular subject: a new revolutionary ideal or perfect subject, for this would be to become but another priest. Nietzsche (1968:490)argues: â€Å"the assumption of one single subject is perhaps unnecessary; perhaps it is just as permissible to assume a multiplicity of subjects, whose interaction and struggle is the basis of our thought and our consciousness in general? . . . My hypothesis: the subject as multiplicity. . . The continual transistorizes and fleetingness of the subject.† This is precisely what Delouse echoes half a century later when he claims (1983a: 5): â€Å"production as process overtakes all idealistic categories and constitutes a cycle whose relationship to desire is that of an imminent principle.† This multiplicity, one might ask: how does one get there, and what does one do when one is multiple, when one is the Dionysian figure who Nietzsche claims (1956:45) is in constant state of becoming, who is â€Å"the nominal â€Å"I† that is always becoming and his intoxicated state sounds out the depth of Being.† In one sense for Nietzsche this is an idle question: one cannot assume multitude is something in itself, indeed (1968:560): â€Å"that things possess a constitution in themselves quite apart from interpretation and subject

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