Astudy on the operaaced by small and medium enterprises in India – With reference to servo stabilizer manufacturingunits

Small and Medium Enterprises (SMEs) as an important segment of the Indian Industrial sector, contributing significantly to the nation in terms of creating increased output, employment and exports generation has been acknowledged on many occasions. However the Small and Medium enterprises face numerous challenges in their day to day business operations. SMEs need to identify, prioritize and effectively tackle these challenges in order to be more efficient in their business ventures. The aim of the study is to examine the various challenges faced by the SMEs which include insufficient working capital, issues in raw-materials procurement, inadequate infrastructure, lack of marketing skills, managerial inefficiency, poor quality and demand conditions with reference to Servo Stabilizer manufacturing in India. The results indicate that there is a substantial increase in the raw material prices followed by increase in working capital requirements. The study brings to light the challenges faced by SME firms and thus pinpoints the required support from the government and trade organizations to help the growth of SMEs.