Problems and Challenges of Small And Medium Enterprises

Small and medium enterprises or SME’S accounts for considerable share of industrial enterprises, employment and production in India. Small business has low capital investment and therefore the risk of the entrepreneur is limited and he can afford to be venturesome. Moreover small businesses have a small gestation period so returns are also quick. The flexibility inherent in this sector allows the entrepreneur to work aggressively if a project seems promising or change course in case things do not work out. In his manner the small business functions as a nursery for developing entrepreneurial talent.