What are SME's ?
In accordance with the provision of Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 the Micro, Small and Medium Enterprises (MSME) are classified in two Classes:
(a) Manufacturing Enterprises- The enterprises engaged in the manufacture or production of goods pertaining to any industry specified in the first schedule to the industries (Development and regulation) Act, 1951). The Manufacturing Enterprise are defined in terms of investment in Plant & Machinery.
(b) Service Enterprises- The enterprises engaged in providing or rendering of services and are defined in terms of investment in equipment.
*Investment in terms of original cost excluding land and building and the items specified by the Ministry of Small Scale Industries vide its notification no. S.O. 1722 (E) dated October 5, 2006.
#original cost excluding land and building and furniture, fittings and other items not directly related to the service rendered or as may be notified under the MSMED Act, 2006.
Role of SME's
Employs 60 million people creating 1.3 million jobs each year
The sector is worth $5 billion and is growing at 8%.
More than 8000 products are produced by 13 million SME units (According to the ministry of MSME).
The enterprises are expected to grow 20% year on year with 90% of the industrial units presently belonging to the sector.
(Source: Small & Medium Business Development Chamber of India)
Challenges faced by SME's
SME sector plays an important role in economic development i.e. constitutes a major source of employment, provides essential goods & services to the society, generates significant domestic and export earnings. SME development emerges as a key investment in poverty reduction efforts
- Access to Capital
- Factoring services
- Access to Technology
- Lack of guidance in area of financial reporting specially at international level
- Corporate Governance
- Role of MSME associations
- Skilled manpower and Managerial Talent
- Market is dynamic and regulatory environment governing SMEs is constantly changing.
Where KGS comes into action
SMEs face the challenge of assessing the risk relating to potential loss of profit on account of machinery breakdown, transit losses, workmen compensation, accidental losses and other similar areas.
SMEs need business support services as they expect delivery of professional services at multi locational areas through ‘Single point Outlet ‘. SME need adequate manpower and lack finance and hence need soft skills to provide to the diverse needs of business clients.
SMEs need assistance in system development life cycle, information security, performance measurement and monitoring, emerging standard and e-governance, preparation of policies, review of IT organization structure, risk analysis, framing of long-term and short term plans, internal control assessment, continuous and concurrent auditing, external assurance, contractual agreements, selection of software tools, outsourcing, incident identification and intrusion detection system, disaster recovery planning, document retention plans, audit of quality check, audit of application controls, audit of emerging technologies, physical, logical and environment control, IT budgeting & web trust assurance etc.
We can be your business partner for the long haul, continuously adding values to your business