Bengaluru, August 29 (Karnataka Information):
Micro, Small and Medium Enterprises (MSMEs) and family-owned businesses in Karnataka are driving the State’s economic growth. At present, 50 lakhs registered MSMEs are providing employment opportunities to 2.3 crores people, said Chief Secretary to the Government of Karnataka Dr. Shalini Rajneesh.
Speaking after inaugurating the ‘India Family Business Summit’ jointly organized by FICCI and UK & Co at Prestige Towers in the city today and releasing the survey report titled ‘Karnataka’s Next Wave of Growth – Unleashing the Potential of SMEs’, she highlighted the significant contribution of MSMEs to the State’s GSDP.
Significant Contribution to GSDP: The MSMEs in the State contribute 8.30 percent to the Gross State Domestic Product (GSDP). They also account for 45 percent of the manufacturing sector and 40 percent of the State’s total exports. She said that the roots of many of the country’s large companies lie in small family owned businesses.
A majority of entrepreneurs who participated in the survey of the industrial and service sectors expressed satisfaction with the policies and programs of the Karnataka Government. The Government has welcomed recommendations to strengthen talent resources in small enterprises and create greater awareness about government schemes, she said.
Changing Global Environment and Challenges: Family-owned businesses are built on decades of long-term vision and values. However, in today’s technology-driven era, global supply chains, access to finance and customer expectations are changing. Therefore, the key challenge before existing businesses is not merely to preserve the old, but also to transform them for the future.
She observed that, particularly when ownership of a business is transferred from one generation to another, it is important to transfer not only authority but also values, knowledge and responsibility. The new generation needs to be given complete freedom to innovate and be creative, she said.
Special Encouragement for Women Entrepreneurs: The Government has implemented several important schemes to promote women entrepreneurs in the State. More than 2 crores women who are heads of households are being provided an incentive of Rs. 2,000 per month, which is serving as a source of capital for small businesses. If three to four women come together to form a ‘Joint Liability Group’ (JLG), they can avail themselves of loans without any collateral security from banks. In addition, free public transport has made it more convenient for women to travel for their business and commercial activities, she said.
Commitment to Ease of Doing Business and Infrastructure: Creating a conducive environment for entrepreneurs to grow with confidence is the Government’s priority. The Government is committed to ensuring ease of doing business, strengthening infrastructure, developing a skilled human resource base and connecting local SMEs with global value chains.
The Chief Secretary called upon the entrepreneurs participating in the summit to use the platform not merely for discussions, but also to share experiences, adopt innovative ideas and explore new partnerships.
