Small business Enterprises:India and EU

1. Small Business Enterprises: India
and EU
Done by: Kocherbaeva Assel

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SME sector of India is considered as
the backbone of economy contributing
to
45% of the industrial output;
40% of India’s exports;
employing 60 million people;
create 1.3 million jobs every year
produce more than 8000 quality
products for the Indian and
international markets.
With approximately 30 million
SMEs in India, 12 million people
expected to join the workforce in next 3
years and the sector growing at a rate
of 8% per year, Government of India is
taking different measures so as to
increase their competitiveness in the
international market.

3. There are several factors that have contributed
towards the growth of Indian SMEs:
• funding of SMEs by local and foreign investors
• the new technology that is used in the market is
assisting SMEs add considerable value to their
business,
• various trade directories and trade portals help
facilitate trade between buyer and supplier and thus
reducing the barrier to trade

4. EU
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In Europe, enterprises qualify as small enterprises if they fulfill
the following conditions:
Headcount < 50 Employees
Turnover < 10 Million
They provide two out of three of the private sector jobs and contribute
to more than half of the total value addition created by businesses in EU.
Moreover, SMEs are the true backbone of the European economy and are
accountable for the wealth and economic growth of the region.
They also play a key role in innovation and R&D in the region.
There are over 23 million SMEs representing around 99.8% of all the
enterprises and 57% of them are sole proprietorships.
They provide two third of the total private sector employment, represent
80% of total job creation and produce more than half of EU’s added value.
However the EU SMEs are struggling to grow. 9 out of 10 SMEs in Europe
are microenterprises employing an average of 2 people.

5. • Considering their importance to the economy and
the role they play for increasing the competitiveness
and dynamics of the European economy;
• Union has been taking several actions.
• In order to help them realize their growth
potential, the Union is working towards promoting
entrepreneurship, creating a friendlier business
environment, providing them assistance to explore
new markets and also awarding them for
outstanding activities in their sectors.