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A Study On Role Private Banks The Development Of SMEs In India

Synopsis
Submitted to

Veer Bahaduer Singh Purvanchal University, Jaunpur

In partial fulfillment of the requirements of the degree of

Bachelor of Business Administration

Summbitted By: Under the Supervision of:

Tej Kumar Ram Mrs. Nitu Singh

BBA 6th Semester Assistant Professor

Roll Number: 15128020029 Department of Business Administration

2016-17
Department of Business Administration
Technical Education & Research Institute
Post-Graduate College, Ghazipur 233001 (U.P.)

Introduction
Small and medium-sized enterprises (SMEs, also small and medium enterprises) or small

and medium-sized businesses (SMBs) are businesses whose personnel numbers fall below

certain limits. The abbreviation "SME" is used in the European Union and by international

organizations such as the World Bank, the United Nations and the World Trade

Organization (WTO). Small enterprises outnumber large companies by a wide margin and also

employ many more people. SMEs are also said to be responsible for driving innovation and

competition in many economic sectors.

A very young country India is, only 68 years of independence. It would take decades for setting

out on a path of sustainable economic growth. We already have over a billion fellow Indians.

India would be having 500 million people between the ages of 25 to 35, within the next 15 years,

which is more than the entire population of the United States! Each person, in this bold new

generation, will be having his prime of his or her life, striving for a better tomorrow. Business

Enterprise and Marketing has drastically changed at a rapid pace from the era of production to

era of relationship marketing. SMEs are a significant source of growth, employment and

economy. The development of any countrys economy truthfully depends upon the
mechanization with the help of sufficient technologies, resources and of course government

policies. SMEs offered a huge achievement in the Industrialization process for developing

economies like India. In the late 20th century with the invention of the Internet, business

enterprises observed an essential conversion in business marketing and operations by moving a

step ahead from traditional marketing and going towards relationship marketing. Over the last

five decades, Small and Medium Enterprises (SME) of Indian sector have arisen as a highly

energetic and vibrant sector of the Indian economy. SMEs not only play an important role in

providing a large number of employment opportunities in industrial sector but also help in the

development of the rural sector. SMEs are harmonizing to large industries as auxiliary units and

this sector contributes immensely to the nations socioeconomic sector for their development. As

of today, the sector comprising 35 million units provides employment to over 85 million people.

The Indian SME sector has the capability of spreading growth of industry across the country and

contributes majorly towards the comprehensive growth of the country. SMEs also plays an

important role in the development of Nation via contribution towards Contribution towards

Defence Production, Significant Export Earnings, Domestic Production, Operational Flexibility,

Appropriate Indigenous Technology, Location Wise Mobility, Import Substitution, Low

Investment Requirements, Technology Oriented Industries, Competitiveness, Low Intensive

Imports in Domestic and Export Markets thus creating new business persons by availing them

training and knowledge. In spite their high zeal to grow, Indian SMEs are facing a number of

difficulties like technological obsolescence, supply chain inefficiencies, sub-optimal scale of

operation, not getting traded receivables from large and multinational companies on time,

uncertain market scenario, insufficient skilled manpower, working capital shortages, change in

manufacturing strategies and turbulent and increasing domestic & global competition. To survive

in such problematic situations and compete with global organisations, SMEs need to adopt
creative approaches in their processes. SMEs that are creative and innovative contribute around

23% towards GDP. SMEs of India are always ready to receive and acquire new business ideas

and new state of technologies.

Objective of the study


The following are the objectives of the study

1- To study the conceptual frame of SMEs.


2- To identify constraints faced by SMEs sector.
3- To study the performance of SMEs in India.
4- To find out the difficulties which they had faced or are still facing from Recession & the

cause of such difficulties.


5- To suggest valuable measures that could help SME entrepreneurs to recover from the

global meltdown.
6- To understand the role of commercial banks in the development of SMEs in India.
7- To find out the Role Private Banks The Development Of SMEs In India
8- To offer suggestions for further development of SMEs of India.
Importance of the study
Scope of the study
RESEARCH METHODOLOGY

This section contains the methodological issues in research. It focuses primarily on providing

help with the tools and techniques used in the research. These tools and techniques differ from

discipline to discipline. Researchers also have specific blazes. Some will prefer Qualitative to

Quantitative approaches or vice-versa. Generally speaking, an integrated approach is advisable.

A study that contains only qualitative data or solely quantitative data messes the rich texture of

interpretation that an integrated approach makes possible. While this section may be organized in

a way that suggests a defined process, this is not the intention.

Research methodology is a way to systematically solve the research problem. It may be

understood as a science of studying how research is done scientifically. In it we study the various

steps that are generally adopted by a researcher in studying his research problem along with the

logic behind them. It is necessary for the researcher to know not only the research

methods/techniques but also the methodology. Researchers not only need to know how to

develop certain indices or tests, how to calculate the mean, the mode, the median or the standard

deviation or chi-square, how to apply particular research techniques, but they also need to know

which of these methods or techniques, are relevant and which are not, and what would they mean

and indicate and why.

Research Design:-
A research design is defined, as the specification of methods and procedures for acquiring the

Information needed. Mainly there are are two types of Research Design.

1-Exploratory Research

2-Descriptive Research

3-Causative Research

1. Exploratory research:-

The major purposes of exploratory studies are the identification of problems, the more precise

Formulation of problems and the formulations of new alternative courses of action. The design of

exploratory studies is characterized by a great amount of flexibility and ad-hoc veracity.

MODE OF DATA COLLECTION

Secondary data: -

The secondary data are those which have been already collected by someone else and which
have already been passed through the statistical tool. "Secondary data are statistics not gathered
for the immediate study at hand but for some other purposes."

The sources of secondary data were internet, books and newspaper articles.
Secondary data can be classified into:-

1) Internal Secondary Data:

Data that are originated within the firm for which the research is being conducted are internal
data. If they were collected for some other purposes, they are internal secondary data."

2) External Secondary Data:

The second form of secondary data is external sources, which are generally published and are
available in different form and different sources.

Tools of secondary data collection: Various books, management literature, magazines. Journals,
company files and records and websites have been used as a means to collect secondary data.

Tools & Techniques of Analysis: Data has been tabulated using a number of statistical tools like
average, percentage and so on. Finally it has been represented pictorially using Pie-charts.

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