Relationship of Knowledge Management and Entrepreneurship

Abstract

Indian SMEs represent the model of socio-economic policies of Government, which newlineemphasise job creation at all levels of income stratum and diffusion of economic power newlinein the hands of few thereby discouraging monopolistic practices of production and newlinemarketing; and in all prospects contributing to growth of economy and foreign exchange newlineearning with low import-intensive operations. newlineIndian SMEs also play a significant role in Nation development through high contribution newlineto Domestic Production, Significant Export Earnings, Low Investment Requirements, newlineOperational Flexibility, Location Wise Mobility, Low Intensive Imports, Capacities to newlineDevelop Appropriate Indigenous Technology, Import Substitution, Contribution towards newlineDefense Production, Technology Oriented Industries, Competitiveness in Domestic and newlineExport Markets thereby generating new entrepreneurs by providing knowledge and newlinetraining. newlineDespite their high enthusiasm and inherent capabilities to grow, SMEs in India are also newlinefacing a number of problems like sub-optimal scale of operation, technological newlineobsolescence, supply chain inefficiencies, increasing domestic and global competition, newlinefund shortages, change in manufacturing strategies and turbulent and uncertain market newlinescenario. To survive with such issues and compete with large and global enterprises, newlineSMEs need to adopt innovative approaches in their operations. SMEs that are innovative, newlineinventive, international in their business outlook, have a strong technological base, newline14 newlinecompetitive spirit and a willingness to restructure themselves can withstand the present newlinechallenges and come out successfully to contribute. Thus all entrepreneurs need to be newlinewell versed with the information about the potential of each sector newlineMicro, Small and Medium Enterprises (MSMEs) in India have evolved considerably newlinesince independence. From being referred to merely as the Small Scale Industries (SSI) newlinesector in the 60s and 70s, the MSME sector has progressed in scale and in the scope of newlinebusiness activities over the years. Today, MSMEs are