Tortoise& Hare: An MSME Parable into Action

Book ID: ISED-312

Book Type: Soft Copy

Description

The general perception in academic and policy circles today is that, under a situation of slowdown in the economy, the SMEs are more seriously affected than the large businesses. On this rationale, governments often announce uniform relief packages, assuming that the impact of a slowdown is broadly of a uniform nature among different types and categories of businesses. Such policy prescriptions are often based on a particular perception on the structural and operational linkages of enterprises of different size classes. Available evidences on the Indian experience, as given by this research, indicates distinct patterns of slowdown- effect among different types of SMEs. Based on various subsector typologies, and of the life cycle position, this paper argues for a discrete strategic approach of supporting SMEs, in order to help them to come out of the pains of a slowdown in the economy. The argument carried by this research initiative is that both the “tortoises”, and the “hares” need discrete support services, so that they can come out of such a crisis situation