Know About Small Business in India

According to the Indian Franchise Association, about 95% of the industrial units in India are Micro, Small and Medium Enterprises (MSME). A growth of 4.1 per cent was observed annually producing thousands of products. It was found that in 2006-07, there were about 128.44 units of MSMEs.

The contribution of the MSME sector to the GDP of the country was found to be 8 percent. According to estimations of UNIDO, about 90 percent of all enterprises in the world are SMEs providing 80 to 90% percent of total employment. The number of companies in SME sector were found to be greater than 95% in the entire Asia Pacific, 99% in Japan, 99.7% in Singapore, 96% in Malaysia, and 97% in the U.S.

With the increase in population in India, there is a need in increase of economy by the proliferation of free enterprises and entrepreneurial opportunities. There was a rise in business possibilities and innovation in India which lead to the entry of more enterprising people into the market arena.

It was estimated that with a possible annual per capita income of Rs. 50,000 there would be a real GDP growth of 8-9 per cent by 2012. It was also found that there would be a four-fold growth between 2005-06 and 2013-14 in the number of households with greater than Rs.12 lakh annual income.