In present era of globalization, small and
medium scale manufacturing enterprises in
India are facing intense competition. Some
industries are consistently achieving the growth
under competitive conditions while others are
not. As a result of this, new opportunities and
threats have emerged., small-scale units were
given further protection. Small scale units were
given the reservation of over 800 products
exclusive production in the small-scale sector,
reservation of some of the products produced in
the sector for purchase preference by
government agencies, supply of scarce
materials, input price concessions like lower
interest rates and numerous fiscal measures
such as excise duty exemptions and other tax
concessions. Even after 138,000 sick units
within the sector in India (Business Today,
2006)14. The survey report shows that small
sector has been growing rapidly, even in the
face of growing competition, internally and
globally (http://ssrn.com). There are numerous
problems that small scale units face today like
maintaining quality standards, access to credit,
over regulation etc.