Erik Erikson s Development Theory - 1603 Words

Erik Erikson’s lifespan development theory has proven to be popular and applicable to many people. However, Erikson’s theory was a bit bias and generalized groups of people whose cultures, genders and environments did not apply to his theory. This paper will focus on Erikson’s last four stages of development, and discuss how each stage may be impacted by these various factors. Identity vs. Role Confusion The adolescence stage of development in Erikson’s theory was labeled as identity vs. role confusion. Teenagers begin developing a sense of who they are in the world by testing different roles and forming them into a single identity (Erikson Handout, 2017). However, Erikson’s idea of the typical adolescent and identity does not completely†¦show more content†¦The term homosexual was not even officially part of the English language until the 1950’s (Levy, 2009). Homosexuality may not be accepted into one’s society or household, leading a teenager to feel highly insecure about their sexual identity. Feelings of confusion may be difficult for some teens to discuss because of fear that others will reject them. Some people may withhold these feelings for many years and possibly for the rest of their lives. A theorist named Vivian Cass created a model of development that depicts the stages one goes through when they become aw are of same-sex behaviors and eventually accept their homosexual identity. This theory suggests that a person goes through six stages which include identity confusion, identity comparison, identity tolerance, identity acceptance, identity pride, and identity synthesis (Levy, 2009). The theory also emphasizes the importance of one’s interpersonal environment during this process. The stability and change in this process is highly influenced by the congruence or incongruence that occurs in one’s interpersonal environment (Levy, 2009). Intimacy vs. Isolation Erikson’s theory states that young adulthood is faced with the struggle to form close relationships and gain the capacity for intimate love (Erikson Handout, 2017). Successful development through this stages leads to intimacy while the inability to work through crises leads to isolation. Putting Off Adulthood Around the timeShow MoreRelatedErik Erikson s Development Theory1408 Words   |  6 Pages Erik Erikson’s Development theory Erik Erikson’s was born June 15, 1902, in southern Germany, His Jewish mother Karla Abrahamsen and to biological father, who was on unnamed Darnish man. Erikson’s biological abandoned him before he was born. Erikson was brought up by his mother and stepfather, Theodor Homberger, who was Erikson’s pediatrician. He never knew the true identity of his biological father. He always was in search of his identity; Erikson’s search for identity took him through someRead MoreErik Erikson s Theory Of Development Essay1635 Words   |  7 PagesMany theories have been written on the subject of human development. Each theory has been further postulated and dissected to include: social, emotional, mental, and biological development. Many theoretical approaches and frameworks have been formulated to offer possible explanations for human behavior. It is paramount for social workers to have a working knowledge of these various theoretical approaches in order to ide ntify and assess their client’s needs effectively. Theories provide basic hypothesesRead MoreErik Erikson s Theory Of Psychosocial Development Essay1366 Words   |  6 PagesAbstract Erik Erikson (1902-1994) provided a new perspective of psychosocial behavior and development while expanding on the works of other theorists. Erikson believed there to be eight stages of psychosocial development which a person transitions through. These stages start at birth and end with old age/death. Erikson’s work is used throughout many outlets of social work. Social workers use this information to help them figure out what is going on with clients and how best to help them. Erikson providesRead MoreErik Erikson s Theory Of Psychosocial Development Essay1177 Words   |  5 Pages Erik Erikson was born in Greman in 1902-1994, American psychoanalyst; known for psychosocial theory of emotional development of human beings. His theory looks at the impact of parents and society on personality development from childhood to adulthood. Erikson believes, each person has to pass through a series of eight stages over there entire life cycle. I will look at the first 3 stages that cover the childhood years. There are set of conflict at each stage, which allows individual to developRead MoreErik Erikson s Theory Of Psychosocial Development884 Words   |  4 PagesErik Erikson Erik Erikson was born June 15, 1902. Erikson is best-known for his famous theory of psychosocial development and the concept of the identity crisis. His theories marked an important shift in thinking on personality; instead of focusing simply on early childhood event, his psychosocial theory looked at how social influences contribute to personality throughout the entire lifespan. Erik Erikson died May 12, 1994 due to prostate cancer. (Erik Erikson, 2015). Stages of Psychosocial DevelopmentRead MoreErik Erikson s Psychosocial Development Theory1518 Words   |  7 PagesABSTRACT This research paper will show a thorough review of Erik Erikson s Psychosocial Development Theory, specifically the transition from adolescence to adulthood. Psychosocial Development, according to Erik Erikson, is a continuity of crisis throughout our lifespan; these challenges will shape our personality and the way we perceive our surroundings. In addition to this, the different stages mentioned in this Theory complement each other and help us to develop the tools to achieve a sense ofRead MoreErik Erikson s Theory Of Psychosocial Development1445 Words   |  6 PagesErik Erikson was an ego psychologists who developed one of the utmost popular and prominent theories of development. While Erikson’s theory was influenced by psychoanalyst Sigmund Freud s work, Erikson s theory centered on psychosocial development rather than psychosexual development. Erik Erikson s theory of psychosocial development is one of the best-known theories of personality in psychology. Much like Sigmu nd Freud, Erikson believed that personality develops in a series of stages. UnlikeRead MoreErik Erikson s Theory Of Psychosocial Development1818 Words   |  8 Pagesinfluential theories in developmental psychology, which is Erik Erikson’s theory of psychosocial development. It is a very interesting theory, and although it was influenced by Sigmund Freud, it centers more on the social component rather than the psychosexual stand of Freud. According to Erikson, our personal development occurs as we interact daily with others and have new experiences that shape us throughout our lives. This paper will review the eight stages of the psychosocial theory: 1. TrustRead MoreErik Erikson s Theory Of Human Development Essay1750 Words   |  7 PagesIntroduction The eight stages of Erik Erikson’s psychosocial theory of human development is a theory which describes different stages of a person’s life and the challenges which they must overcome in that specific stage (Arnett, 2016). There will be two interviews conducted with individuals that are in age groups ranging from early adulthood to middle adulthood and that are in different stages of Erikson’s theory. The interviews will be connected to the stages Erikson said they should be in accordingRead MoreErik Erikson s Theory Of Psychological Development2113 Words   |  9 PagesErik Erikson has been classified as one of the greatest and most influential psychoanalysts of all time. His theory is one of the best known theories of psychological development. Erikson’s theory talks about how personalities develop over different stages of life, compared to Sigmund Freud’s theory of psychosexual stages of life (Sharkey, 1997). One of the greatest reasons why Erikson was interested in psychology was because of things that happened in his early life. Erikson learned a lot from just

A Clean, Well Lighted Place By Ernest Hemingway - 1024 Words

When profound emotions and heartfelt experiences lay beneath a narrative subtext, a simple short story can become an elaborate puzzle where one continues to discover new pieces. Ernest Hemingway’s, â€Å"A Clean, Well-Lighted Place† is a fascinating short story that has a powerful theme of ‘nothingness’ and ‘loneliness’ enveloped beneath its dialogue. This short story’s re-readability pulls us, the reader, back into its’ text just to discover that a specific character’s dialogue could elude to yet another much darker theme. Hemingway’s writing is minimalistic, consisting of numerous underlying subtext the reader needs to interpret for themselves; however, the writing style contrived throughout the short story grasps the readers every thought†¦show more content†¦Naming the short story â€Å"A Clean, Well-Lighted Place† is the perfect description for what the cafà © represents. The cafà © is a sanct uary, therefore a little place to escape from the nothingness laying within some of the characters. A bar couldn’t compare to the beautiful, bright, clean, and calming effects the cafà © has, consequently there is where the gentlemen and the older waiter wasn’t subjected to feel alone. They did not force themselves to be uncomfortable in a loud dark bar, and to the older waiter, drinking at the cafà © was still somewhat dignified (Hemingway). The elderly man has a place to drink, forget about his worries even for a minute moment in the night. Suicide, an action only attempted by those who have nothing left to live for. The word ‘nothing’, or ‘nada’, appears numerous times within the short story. The first time ‘nothing’ was said, the waiters are discussing the man’s attempt on suicide (Hemingway). On an individual’s first time reading the short story they may not acknowledge how significant the word ‘nothing’ is, as the young waiter’s harsh response to his despair; for how can the old man be in despair when He has plenty of money (Hemingway). However, looking deeper into the contexts, the word nothing can be foreshowing giving the reader a glimpse into the role nothingness, loneliness, and ‘lack of’ has throughout the short story. We the readers can tell there is something emotional and deep missing fromShow MoreRelatedA Clean Well-Lighted Place, by Ernest Hemingway990 Words   |  4 Pages Ernest Hemingway’s short story, A Clean Well Lighted Place, created literary controversy when it was initially published in 1933. During this time, there were several literary critics concerned with the dialogue inconsistencies. In the original story, the reader would not be able to distinguish between the two waiters. Hemingway failure to identify the characters by name leaves the story flawed according to the literary critics. Hemingway does not go into the mind of any characters butRead MoreA Clean, Well Lighted Place By Ernest Hemingway1640 Words   |  7 Pages â€Å"A Clean, Well-Lighted Place† is possibly one of Hemingway’s most excellent short stories. It depicts the techniques of his signature writing style. The narrative is a perfect example of an initiation story, a short story that focuses on the key character that comes across a concept, encounter, practice or knowledge he never knew. The characters in his story are the old man, young waiter, and the old waiter. Hemingway employs a number of literary tools in the story to convey his themes of lifeRead MoreA Clean, Well Lighted Place By Ernest Hemingway1034 Words   |  5 PagesErnest Hemingway developed his own style of writing and follows it in â€Å"A Clean, Well-Lighted Place†. Hemingway’s elegance in writing is such that he indirectly gives all of the information to the reader without making any judgment; thus allowing one to create an opinion about every minute detail of the story. Hemingway illustrates his foundations of writing in â€Å"A Clean, Well-Lighted Place† by providing small clues that provide an indirect view of the larger meaning. Hemingway illustrates one ofRead MoreA Clean, Well Lighted Place By Ernest Hemingway1950 Words   |  8 Pageseverything humanity values in life is utterly meaningless. The author Ernest Hemingway is one of the few people who understands this concept of a pointless life. In his short story, â€Å"A Clean, Well-Lighted Place,† Hemingway reveals the principle of existentialism, that life is inherently meaningless and people must attempt to give their own lives purpose, through an analysis of the inner workings of life as a human. Hemingway first reveals life’s meaningless nature through a description of the coreRead MoreA Clean, Well Lighted Place By Ernest Hemingway1628 Words   |  7 PagesIn Ernest Hemingway’s â€Å"A Clean, Well-Lighted Place† the use of plot, symbolism, characters, and theme creates an intricate and complex story line. The elements of plot keep the readers engaged by guiding the reader though the story. Hemingway emphasizes on despair, loneliness, and isolation as major themes in his short story to help the reader understand the main idea. The themes represent the challenge of finding meaning in life. He also challenges the reader’s understanding of compassion thoughRead MoreA Clean, Well Lighted Place By Ernest Hemingway1854 Words   |  8 PagesErnest Hemingway is a noble prize winner that is noticed as one of the great American twentieth century writers, and is known for works like â€Å"The Sun Also Rises† and â€Å"For Whom the Bell Tolls†. When first reading Ernest Hemingway’s short story â€Å"A Clean, Well-Lighted Place† it seemed to be a plain, emotionless, and almost not finished short story. Although, as the reader looks deeper into the short story, they realize it’s not just about a clean, quiet, well lighted cafà © that has two employees thatRead MoreA Clean, Well Lighted Place By Ernest Hemingway972 Words   |  4 Pagesin a Clean, Well-Lighted Place Despair is an emotion that can rob one’s joy, inner peace, and eventually, life. The desire for serenity is usually sought after by a person whose life is futile and is at his or her wit’s end. That individual is usually left with no other alternative but to come to the realization that if he or she fails at his or her attempts (such as suicide) to alleviate despair, then the opportunity of finding peace and comfort is an alternative worth pursuing. In Ernest Hemingway’sRead MoreA Clean, Well Lighted Place By Ernest Hemingway849 Words   |  4 Pagesin life, and try to make rational existing in an irrational universe. The fact that humans are conscious of their mortality, and must make decisions about their life is basically what existentialism is all about. In the story â€Å"A clean, Well-lighted place† by Ernest Hemingway was about two waiters waiting to close up the restaurant/cafà © for the night. They only had one customer left, an old man who wa s deaf and drunk. But he wasn’t causing any trouble, just keeping to himself. The two waiters apparentlyRead More Nothingness in A Clean Well-Lighted Place by Ernest Hemingway1369 Words   |  6 PagesNothingness in A Clean Well-Lighted Place by Ernest Hemingway Man is often plagued by the question of his own existence. Existentialism is a subjective philosophy that is centered upon the examination of man’s existence, emphasizing the liberation, responsibility, and usually the solitude of the individual. It focuses on individuals finding a reason for living within themselves. The philosophy forces man to make choices for himself, on the premise that nothing is preordained, there is no fateRead MoreA Clean, Well-Lighted Place, by Ernest Hemingway Essay examples1296 Words   |  6 Pagesmeans by which we arrive at that goal. For Ernest Hemingway, the characters that he places in his stories are forever searching for peace. Much like in life itself, the achievement of temporary peace throughout the path of a lifetime can be both minute and momentous. The writer uses the literary devices of indirect characterization, setting and symbolism in order to enhance his final classification of peace. In Hemingways A Clean Well-Lighted Place, the author uses literary devices to define

Privacy for Right to be Forgotten - myassignmenthelp.com

Question: Discuss about thePrivacy for Right to be Forgotten. Answer: Synopsis In the given case, what Google faced is the clash between the right to privacy and the right to be forgotten (Harkiolakis, 2013). This is due to the reason that, in the case of Google vs Costeja, court rules out that being the data provider, Google should remove any data, which will harm the privacy of any individuals (Ambrose, 2012). According to the Costeja, some information about him being available in the Google has the potential to affect his image. Thus, he wants Google to remove the information that can malign his image. However, according to Google, this information is not breaching their privacy policies. Identified Issues However, Google adhere with the right to privacy act, which states that they cannot publish any types of the private data in their portal. According to Google, this ruling will adversely affect their business policy due to the fact that, several users will ask for removing any data that they think that the particular information will harm their privacy or reputation. Thus, the basic motive or objective of the search engine being provided by Google will be diluted. Thus, the key issue that will be faced by Google will be the removal of the relevant as well as irrelevant information from their search engine. According to the sorting process of information of Google, they involve a specific algorithm mechanism for providing the information in the search engine (Lazer et al., 2014). Thus, removal of the data will adversely affect the entire process of providing search results. Moreover, there will be a clash between the policy of Google and the understanding of the complainers. This is due to the reason that, according to the standard policy being followed by Google, they will remove the data from their search engine, which they will find inappropriate for the publication (Hashem et al., 2015). However, in the case of the right to forgotten, the extent of removing the content from the site will be depended on the attitude and belief of the complainers. This is due to the reason that, if the complainers found that any data in the search engine is harming their reputation will ask for the removal. However, the information that is being asked for removal may adhere with the privacy policy of Google. Recommendations Recommendations for this issue include issuing a standard guideline by Google about their privacy policies. It will make every stakeholders being aware about the policies followed by them. In addition, it will help Google in acting as evidence in future in case of lawsuits. This will enable Google to present arguments that all the stakeholders are prior adhered with their policies and thus by accessing their service and information, it is being assumed that they have complied with the regulations. Conclusion Thus, it can be concluded that, the right to forgotten will obviously create barrier in the business activities of Google. The entire business potentiality of them will get adversely affected due to the initiation of the right to forgotten act. However, it is being expected that the effective implementation of the recommendations being given will help to reduce the possibilities of the lawsuits in future. Reference Ambrose, M. L. (2012). It's about time: privacy, information life cycles, and the right to be forgotten.Stan. Tech. L. Rev.,16, 369. Harkiolakis, N. (2013). Right to Privacy. InEncyclopedia of Corporate Social Responsibility(pp. 2082-2087). Springer Berlin Heidelberg. Hashem, I. A. T., Yaqoob, I., Anuar, N. B., Mokhtar, S., Gani, A., Khan, S. U. (2015). The rise of big data on cloud computing: Review and open research issues.Information Systems,47, 98-115. Lazer, D., Kennedy, R., King, G., Vespignani, A. (2014). The parable of Google Flu: traps in big data analysis.Science,343(6176), 1203-1205.

Franklin Delano Roosevelt Essay Significance Example For Students

Franklin Delano Roosevelt Essay Significance Franklin Delano RooseveltFranklin Delano Roosevelt is one of our countrys best known and most beloved presidents. He is commonly remembered for taking a tired, beaten, nation and instilling hope in it. This positive view of Roosevelt is held by Burns, who paints the picture of a man whose goal was to alleviate our nations economic pains. But, is this view too myopic? Is Roosevelt deserving of such a godly reputation? These questions are posed by Conkin as he points out the discrimination that underlies many New Deal programs, and even suggests that many of Roosevelts actions were for purely political motives. During the weeks preceding Roosevelts inauguration the country was engaged in an economic crisis that was quickly spiraling downward. Banks failed, people panicked, and the nation looked to someone, anyone, for help. Hoover, sensing the countrys desperation, but realizing his lack of power, and the feelings of resentment harbored towards him looked to Roosevelt. He asked the pre sident-elect to join in economic planning, support policies, and most importantly to reassure the nation. While both authors note Roosevelts unwillingness to cooperate with Hoover they site different reasons for it. Burns talks of Roosevelts belief that the nation was not yet his domain, and that Hoover had the authority to handle the situation. In addition, Burns excuses Roosevelt by maintaining Roosevelt did not foresee that the banking situation would reach a dramatic climax on Inauguration day. No man could have. (P. 148) This position is an exceedingly benevolent one when contrasted with Conkins who writes Roosevelt did nothing, and helplessly watched the economy collapse, letting it appear as one last result of Republican incompetence. This measure allowed Roosevelt to emerge as the nations savior, and ally the Democratic party with this image. Furthermore, the two authors differ in their assessment of the effect of public opinion on Roosevelts actions. Burns gives the impression of a president who looked to engage all in his coalition. He states, politically, his cabinet catered to almost every major group. Burns also adds, Roosevelt did not slavishly follow the wishes of group leaders. (P. 150). Roosevelt is portrayed as the paragon of a humanitarian, he wanted to help the underdog, though not necessarily at the expense of the top dog. He believed that private, special interests must be subordinated to the general interest. (P. 155) Conkin attempts to poke holes in this idealistic portrayal of Roosevelt. Conversely, Conkin implies that many of Roosevelts programs helped the top dog, at the expense of the underdog. He argues, many New Deal programs such as the AAA and NRA, ignoreed the plight of the common American, while helping the politically more influencial sectors of the population. Similarly, many programs such as t he Wagner Act, Social Security, and the AAA did not apply to migrant labors: those with the least political clout, and a comparatively low rate of voter turnout. I have come to be a believer in many of the arguments made by Conkin. While Burns spends much time praising Roosevelt and focusing on his successes, he ignores to talk about the non-existent benefits that the New Deal brought to a significant percentage of the population. He does not focus on Roosevelts policy towards blacks. Why? Because Roosevelts programs typically did not aid this sector of the population. As noted by Conkin Roosevelts AAA led to an increase in unemployment among blacks, and Roosevelt refused to support an anti-lynching bill, fearing that his support would alienate the white Southern Democratic vote. My support for Burns opinion is strengthened by my additional outside knowledge. Roosevelts programs such as the CCC and PWA were not designed, to and mainly did not include women. Moreover, under the Roosevelt administration a law enacted which legally allowed only one family member to hold any type of job, this measure essentially kicked married women out of the wo rkforce. I think Conkins argument is much more concrete than Burns. While Burns focuses on high figurative language to praise Roosevelt, Conkin gives the reader concrete examples that serve to cast doubt on this demi-god image of the former president. What must be understood is that Conkin does not go as far as to denounce Roosevelt as a leader,

The nature, incidence and ethical issues of creative accounting free essay sample

Creative accounting is also called â€Å"Earnings management† which is known as the manipulation of financial information. The term can be defined in many ways. Initially we define it as a process whereby accountants use their knowledge of accounting rules to manipulate the figures reported in the accounts of a business (Naser, 1993, p.59). Creative accounting, at root, is the origin of numerous accounting frauds. Many accounting scandal cases (like the scandals in Enron, WorldCom, and other firms) in the past few years had happened with the result of collapse. Most of these scandals were conducted by the senior management of organisations and many victims include the employees, shareholders as well as the society had been suffered from these fraudulent cases. Therefore, it draws our attention to why and how a company may use the creative accounting to commit its so-called â€Å"window dressing† (Ghosh, 2010, p.2). This research will explore the nature, incidence and techniques of creative accounting as well as how it works. We will write a custom essay sample on The nature, incidence and ethical issues of creative accounting or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page This research will first review the previous literatures to find out the certain definitions of creative accounting by various authors. Then it will look into what motivate people to commit creative accounting and techniques applied to commit creative accounting. The next is looking into the measures and responsibilities of detecting and combat creative accounting. In the rest we will discuss the key findings, recommendations and conclusion of this research. 1.2 Literature Review There are various views of the definition of creative accounting by different scholars. Copeland (1968) defines it ‘Involves the repetitive selection of accounting measurement or reporting rules in a particular pattern, the effect of which is to report a stream of income with a smaller variation from trend than would otherwise have appeared. Griffiths (1986:1) presents his point of view that: â€Å"Every company in the country is fiddling its profits. Every set of published accounts is based on books which have been gently cooked or completely roasted. The figures which are fed twice a year to the investing public have all been changed in order to protect the guilty. It is the biggest con trick since the Trojan horse. . . In fact this deception is all in perfectly good taste. It is totally legitimate. It is creative accounting.† Naser (1993, p. 59) defines creative accounting as â€Å"the transformation of financial accounting figures from what they actually are to what preparers desire by taking advantage of the existing rules and/or ignoring some or all of them†. It is the procedures of playing the financial numbers by skilfully applying the accounting standards and the selection of measurement and disclosure choices to achieve the financial performance which a company expected. Klein (2002) illustrates ‘Whereby the true financial performance of a company is distorted by managers for private gains. The above series of definition presented by various authors who although from different decades, their basic perspective towards creative accounting reach consensus. They agree that the primary concept of creative accounting is ‘a process whereby accountants use their knowledge of accounting rules to manipulate the figures reported in the accounts of a business. 1.3 Motivations of Creative Accounting Numerous scholars have researched on the issue of what motivate the behaviour of creative accounting towards the management. Mulford and Comiskey (2002) identified various positive effects the managers would receive from manipulating figures. They show that â€Å"the rewards may be any of the following: lower corporate borrowing costs as a result of an improved credit rating, favourable effect on share prices, political gains, and/or incentive compensation plans involving stock option or profit-sharing for top management and key employees which are tied to income measurement†. Shafren (2009) analysed internal and external of Satyam. He illustrates that shareholders are more aware of the financial reports of this company because financial reports present how well the company operates and its performance in the market. Therefore, managers or directors mean to depict good performance and position by manipulating figures hence in such way the stakeholders will be shown positive indicators from the financial statements. By this way, investors will more likely to be attracted and given confidence with this superb financial report. This can be achieved by modifying the figures in the statements using the tricks of creative accounting. In addition, how many bonuses directors will receive in a year may base on the percentage of the profit reported (Shafren, 2009). For this reason of their private interest, directors may manipulate financial figures to meet their desire. Lttner, Larcker and Rajan (1997) have the same perspective. They illustrate that when the directors or managers private interest (such as stock options and bonuses) is rely on the performance of the company, they are more likely to use creative accounting to manipulate the figures in order to achieve their favourable results. Another motivation of creative accounting is the positive effect that the income smoothing brings to the valuation of security and reduces the risk for the analyst. â€Å"Where management observes a gap between analysts’ expectation and the actual performance of the company and when major capital market transactions are being expected† (Amat, Blake Dowds, 1999, p. 7). Therefore, directors or managers manipulate financial figures to match with the figures they expected. Fox (1997) researched the company of Microsoft to look into how their accounting rules are designed to tie in the actual profits to forecasted profits. He identified that a considerable high proportion of the firm’s profit made by selling products was deferred to the following years with the aim to cover the potential upgrades and other costs. Amat, Blake and Dowds (1999) suggest another motivation of creative accounting is related to the share price of a company. They illustrate â€Å"companies raise capital from new share issues, offer their own shares in takeover bids, and resist takeover by other companies†. Therefore, directors or managers try to lessen borrowing and create the performance of a positive earnings trend in such way to maintain or boost the share price of the company. Where the managers participate in conducting shares of their firm, creative accounting may be used to postpone releasing the information for market. Hence, in such way, it would enhance the managers’ opportunities to obtain benefits from their inside information. Dharan and Lev (1993) have noticed that companies are likely to use creative accounting when their share prices start to drop comparing to the share prices which they have reported previously. This is for the reason of huge stress produced by the various obligations as well as constraints depended on the value stated in the reports. Hepworth (1953) reported in his work the existence of tax levies on the basis of income and confidence by the stakeholders and employees in management is also an important reason of using creative accounting. Directors or managers my apply the creative accounting to help lessen the pressure of tax levies in such way to pay lower possible taxes of income as long as the involving cost provided is not more than the income tax benefit (Beatty and Harris, 2001). Niskanen and Keloharju (2000) have researched on the companies in Europe, they identify that the organisation tax would be the motivation for managers in the companies to use creative accounting. The above motivations identified are some of the common reasons for creative accounting. In general, the main reasons for using creative accounting are because of the gaps between the actual performance of companies and their internal targets and stakeholders’ expectations, desire of tax benefits and providing income smoothing. Thereby, stakeholders should be more aware of these areas. 4.4 Techniques of creative accounting

Transition Questions on ACT English Strategies and Practice

Transition Questions on ACT English Strategies and Practice SAT / ACT Prep Online Guides and Tips Transitions are one of the most common and trickiest rhetorical topics tested on the ACT English section. However, there are a couple simple rules that can make answering these questions much easier. In this post, I'll cover everything you need to know to approach all three types of transition question: Types of transitional relationships Transitions between sentences Transitions between clauses Transitions between paragraphs Key strategies for transitions on ACT English questions Feature image credit: Justin Kern, via Flickr, under CC BY-NC-ND 2.0 3 Types of Transitions The ACT covers three basic transitional relationships: addition, contrast, and causation. Understanding how these relationships work will be very helpful for the test. Addition: Words like "also" and "moreover" that indicate continuation of or elaboration on a thought. Contrast: Words like "however" and "still" that introduce a conflicting point or idea. Causation: Words like "so" and "because" that indicate a causal relationship. Let's look at some examples in context: Addition: Dorian Gray couldn't be killed. In addition, he never aged. Contrast: Vanessa knew Ethan was a werewolf. However, she was unconcerned. Causation: Frankenstein's monster threatened to hurt him if he didn't build the monster a mate, so Frankenstein did as he was told. Keep in mind that not every transition falls into one of these categories. They're more what you'd call guidelines, than actual rules. Nonetheless, thinking about transitions in these terms can help you pick out the right answer on ACT English questions, as you'll see below. Transitions Between Sentences The most common type of transition question on the ACT deals with picking the correct transition word to place between two sentences. For example: Malcom and Sam were best friends. Even so, they spent every moment of the day together. Something about this transition doesn't quite make sense. "Even so" is a contrast transition, but these to sentences aren't opposed to each other: if Malcom and Sam are best friends, it makes perfect sense that they would spend every day together. Instead it would make more sense to use a causation transition, or even drop the transition word completely: Malcom and Sam were best friends. As such, they spent every moment of the day together. Malcom and Sam were best friends. They spent every moment of the day together. We're going to cover a step-by-step approach, key transition words, and some helpful ACT English tips for questions about connecting sentences. Step-by-Step Approach Let's got through how to approach sentence transition questions step-by-step: #1: Cross out the underlined word. Always start by crossing out the word that’s there. Otherwise, if it's not obviously wrong, you may be biased in favor of the original phrasing. #2: Read to the end of the sentence. You should be doing this on every question, but it's especially important here to make sure you understand how the two sentences are related to each other. #3: Does anything seem obviously necessary/correct? Sometimes you'll read the two sentences and immediately recognize what word you would use- that specific transition may not be a choice, but you can look for synonyms. #4: What type of relationship is it? Addition, contrast, or causation? If you're not sure, it can be helpful to think about whether you would connect the sentences with and (addition), but (contrast), or so/because (contrast). #5: Narrow down your choices. Once you have a sense of what you're looking for, rule out any answers that don't make sense or that aren't grammatical. #6: Plug answer into sentence to check. When you think you have the answer, plug it into the sentence and make sure the transition is logical. We'll walk through this process with an example shortly, but first let's go over some key words and strategies that you need to know. Key Words Transitions between sentences are generally conjunctive adverbs, like "however" and "furthermore," or prepositional phrases, like "for example" and "on the other hand." You can see the most common ones below, sorted by type. Introducing Sentences Addition Contrast Causation Also However Thus Moreover On the other hand As such In fact Nonetheless Therefore Furthermore Nevertheless Consequently In addition Still As a result Similarly Instead Indeed Despite this In conclusion Meanwhile In other words Finally Next Likewise Then For example As I mentioned above, not every question will involve these types of transitions. Occasionally, you'll see other phrases or adverbs, like "in general" or unfortunately," or constructions that are specific to the context. You may also see options that are grammatically incorrect. These will generally be coordinating or subordinating conjunctions (see the chart below for examples), which can't be used immediately before a comma to introduce a complete sentence. Helpful Tips Beyond the basic concepts we've discussed, there are some ACT English-specific tips that can really help you approach transition questions. If two choices are synonyms, neither is correct. If two of the words mean the same thing (they must be synonyms, not just belong to the same category), there's no way to choose between them, so neither can be correct. When you see two choices that are synonyms, rule them both out. If one of the choices omits the transition word altogether, that's usually the correct answer. Always check any answer that leaves the transition word out first- if the paragraph works without it, that's the right answer. Transition words don't necessarily come at the beginning of the sentence. Sometimes, for example, you'll see them moved into a sentence like this one. keep in mind that they must be surrounded by commas and can't be used to connect two independent clauses without a period or semicolon. Don't panic if the three categories don't apply. Not every question deals with transitions that fit into the categories outlined above. Simply use the rest of the strategy (thinking about how the two sentences are related, narrowing down choices that don't make sense, and then plugging in the answer you think is right to check) to pick out the best answer. Watch out for questions that ask for the LEAST acceptable option. Make sure to use process of elimination to rule out any answer that does work. Real ACT Practice Question We've covered a lot of material on transitions- let's put it into practice on a real ACT question. This example is a case where the transition has been shifted into the sentence, but we'll approach it in the same way. The first step is to look at the two sentences without the transition: Snowflakes form from tiny water droplets, following a specific process of chemical bonding as they freeze, which results in a six-sided figure. The rare "triangular" snowflake confounded scientists for years because it apparently defied the basic laws of chemistry. Does an obvious transition jump out at you? Not really. On to the next question! How are these sentences related to each other? The first sentence describes how snowflakes are formed. The second brings up a seeming exception to that rule. This relationship is contrasting. Rule out answers that don't work. "Additionally" and "similarly" are too similar to choose between, so both must be wrong. "For example" doesn't make sense, since the second sentence is actually about an exception to the rule laid out in the first, not an example of it. Plug in the remaining choice. We have only "however," which is a contrast transition, left. Let's try it out in context: Snowflakes form from tiny water droplets, following a specific process of chemical bonding as they freeze, which results in a six-sided figure. The rare "triangular" snowflake, however, confounded scientists for years because it apparently defied the basic laws of chemistry. That transition makes sense, so J must be the correct answer. Image credit: Arjan Almekinders, via Flickr, under CC BY-NC-ND 2.0 Transitions Between Clauses Questions dealing with transitions between clauses are very similar to those about transitions between sentences, so you can use the same approach. However, these questions involve a different set of transition words: coordinating and subordinating conjunctions. Connecting Clauses Addition Contrast Causation And But So Yet Because Unless Since While As Though Such that Although Whereas Otherwise You may see questions that mix up the different types of transitions and attempt to use a conjunction for connecting clauses to introduce a sentence or a conjunctive adverb to connect two clauses- these answers will be incorrect. Issues with transitions between clauses may also be tested in conjunction with correctly connecting independent clauses, so watch out for punctuation as well. (For more details on connecting independent clauses, check out our post on run-ons and fragments.) Let's use the strategy above to answer a real ACT example that asks about transitions between clauses: First we have to look at the underlined word and answer choices and recognize that these subordinating conjunctions, so this a question about connecting clauses and not sentences. Next, let's cut out the current transition word and break the sentence into its two component clauses (I'm also going to eliminate the descriptor at the end for simplicity): There's not much chance that a seven-year-old just learning the game can hit a pitched baseball The umpire puts the ball on top of a stationary tee Does an obvious transition jump out at you? I would use "so" or "because" to connect these two ideas. How are these sentences related to each other? Those transitions jump out at me because the idea in the first clause (that a seven-year-old can't hit a pitched baseball) clearly leads to the solution in the second (putting the ball on a tee). This connection is a causal relationship. Rule out answers that don't work. Neither "while" nor "although" can work because they're interchangeable (and both contrast transitions). "Unless" doesn't make sense. Plug in the remaining choice. Process of elimination leaves only "since," which is a causation transition. Looking at the sentence as written, we can see that it makes sense, so A is the correct answer. Transitions Between Paragraphs The final type of transition question deals with transitions between paragraphs. Rather than asking about a specific word or phrase, these usually deal with full sentences and will be phrased similarly to the following examples: Given that all of the choices are true, which one would most effectively introduce the main idea of this paragraph? Which of the following sentences offers the best introduction to this paragraph? The exact phrasing may vary, but these types of questions always ask about "transition" or "introduction." Step-by-Step Approach Because it's impossible to predict the content of an entire paragraph, it's vital that you use process of elimination for questions that ask about transitions between paragraphs. Here's a step-by-step approach to help you narrow down your choices. #1:Pay attention to what the question is asking for. Though many of these questions simply ask for the sentence that provides the best transition or introduction, some may give a more specific. Make sure to read the question carefully and think about what it's asking. #2: Read into the paragraph at least a couple of sentences. Ideally, you'll read the whole paragraph before answering transition questions, but you absolutely must read at least one sentence after the first to get a sense of the context. #3: Keep in mind types of transitional relationships. Though most of these questions don't involve transition words, it can still be helpful to consider whether there's a clear contrasting or causal relationship. #4: Look for anything that needs to be introduced because it's referred back to later in the paragraph. In the subsequent sentences, look out for pronouns like this and these that reference ideas or nouns that need to be introduced in the first sentence. This will often be the best hint for the correct answer. #5: Narrow down the choices. Rule out answers that don’t make sense or don’t fit with the general tone of the passage. #6: Plug in the sentence you think works best. When you've eliminated three choices, read the last answer in context and check that it makes sense. Not all of these steps will apply to every question- the important thing is to think about these ideas as you work to rule out choices. Real ACT Practice Question Let's walk through how to approach a paragraph transition question from a real ACT. What is the question asking for? The best transition between the paragraphs. Read both paragraphs. The first paragraph describes Quezada's discovery of and interest in the ancient pots. The second paragraph details his attempts to recreate them. Is there anything referenced later in the paragraph that needs to be introduced? The sentence that currently opens the paragraph mentions "the clay" without really explaining which clay it's talking about. Narrow down choices. We can immediately rule out F, because it's about the town and not the pottery, which is the topic of these two paragraphs. G and J are both relevant to the topic of the ancient pottery, but neither makes sense as a transition. The patterns are initially described earlier in the passage, and Quezada's painting doesn't come up until later in the second paragraph. Plug in the remaining option. Let's look at the passage with H, the only remaining option, plugged in. Fascinated by geometric designs, Quezada wondered if he could make pots like these. Quezada began working with clay from the mountains. He dug the clay, soaked it, and tried to shape it into a pot. The underlined sentence makes sense as a transition, so H is the correct answer. Image credit: Carlos Bryant, via Flickr, under CC BY-NC-ND 2.0 Summary of Key Strategies for Transitions on ACT English Though transition questions can vary pretty widely, you should always use process of elimination to narrow down the possibilities. I've rounded up the most important tips from the in depth discussion above. Consider the type of transitional relationship. Thinking about how the sentences or paragraphs are related to each other is key to understanding how best to transition between them. Read the question carefully. Any time there's a written out question, make sure you know what it's asking for- don't make assumptions. Similarly, make sure you always read enough of the passage to understand the context. Use multiple choice to your advantage: If two answers are synonyms, neither is correct. If one answer has no transition word, that’s usually the correct one. Plug in the answer you think is best to check. Always make sure that an answer makes in context. If nothing else, this technique will help keep you from picking answers that indicate the right type of transition, but don't fit into the sentence grammatically. What's Next Transitions are sometimes tested in conjunction with sentence structure and punctuation, so make sure you read our complete guide to commas and our post on other punctuation marks. If you're struggling with the rhetorical skills questions, take a look at our guides on redundancy and author technique. For more big picture strategies, be sure you know the best way to approach ACT English passages and the 5 critical concepts you need to ace the test. Want to improve your ACT score by 4 points? Check out our best-in-class online ACT prep program. We guarantee your money back if you don't improve your ACT score by 4 points or more. Our program is entirely online, and it customizes what you study to your strengths and weaknesses. If you liked this English lesson, you'll love our program. Along with more detailed lessons, you'll get thousands of practice problems organized by individual skills so you learn most effectively. We'll also give you a step-by-step program to follow so you'll never be confused about what to study next. Check out our 5-day free trial:

The Massachusetts experience with universal health coverage Term Paper

The Massachusetts experience with universal health coverage - Term Paper Example In fact, the Affordable Care Act on Obamacare universal insurance is based largely on the Massachusetts universal health care coverage (Kessler 1). Universal Health Care has an impact on the individuals of a society and implementing it guarantees better health of the people and productivity. Universal Health Care Universal health care is a system of health insurance in which the objective is to ensure that all individuals in the society or any jurisdiction have access to good health care. In most countries, health care is expensive to especially those who are considered below the poverty line - they are unable to access healthcare facilities as they cannot afford. The universal health-care plan promises to change all that by providing insurance to even the very poor. This healthcare is based on several principles, as discussed below. Provision to all Universal care is based on the fact that all people should have access to healthcare. This is regardless of whether they are rich, poor or are in the middle class. The plan has to be such that no person is unable to pay for healthcare services. The cost of the services is spread across all the people using the plan to ensure that all people can be able to make payment regardless of their social class. This is through several options provided to the individuals. Reduced direct spending: Direct payments made by individuals seeking healthcare services to providers are reduced. In this case, the individuals have to cost share the cost with the providers. This can be through co-payments, in which the individuals subscribe to be paying a specified fee per month, deductibles in which the individual is deducted a certain amount of money after a certain period like monthly, quarterly or half yearly depending on their specifications, coinsurance in which insurance is spread across several parties and unofficial payments to the provider at the time when seeking healthcare services (Universal health coverage 3). Prepayment Hea lth care has to be financed by some individuals at some point. In the case of universal health care, individuals who can afford to make contributions every now and then are encouraged to continue making contributions. The payments are made before hand, and it is not necessarily that a person is seeking healthcare services to make the payment. Contributions are made through taxes, payroll deductions, contribution premiums and donor contributions. The contributions can be organized in different ways depending on the jurisdiction (Universal health coverage 4). Risk Pooling: Universal healthcare is based on sharing the cost of healthcare facilities and services. In this case, the cost incurred by any individual when seeking health care services is spread across all individuals that have subscribed to the universal health care services. For the system to be more effective, more people are required to subscribe and make payments. This reduces the chances of fluctuations when services are being provided. When few people subscribe, there are times when the facilities may lack funds, especially when many people are seeking medical interventions at the same time (Universal health coverage 5). Considerations for universal healthcare success Universal healthcare has to be well considered for it to work out properly. The political landscape of the country is

Primark- Between Affordability and Ethics Essay

Primark- Between Affordability and Ethics - Essay Example Primark’s name has also come to be associated with the employment of child labour and illegal immigrants. The company has a good ethical record in the sphere of environment and animal rights. However, the corporate practices of Primark do leave scope for ethical scrutiny. The top management of the company does need to formally recognize these ethical lacunas and take immediate steps to arrest its dwindling ethical credentials. Executive Summary Table of Contents 1.0 Introduction 4 2.0 Discussion 4 2.1 Labour Practices 4 2.2 Environmental Concern 6 2.3 Ethical Corporate Practices 6 2.4 Animal Rights 6 3.0 Conclusion 6 4.0 Recommendations 7 Reference List 8 1.0 Introduction Primark is a clothing retailer of Irish origins that has its stores in United Kingdom, Austria, Netherlands, Spain, Belgium, Germany, Portugal and Ireland. Primark primarily tends to sell clothing items that affiliate to the budget segment of the market. Thereby it has to face an immense competition from vari ed other budget segment clothing retailers. Ostensibly speaking Primark commits allegiance to a code of ethics and the company expects its suppliers to follow the principles inherent in this code of ethics and strictly requires the suppliers and factories dealing with Primark to make it certain that the products supplied to the Primark are made by workers employed in good working conditions, and that these workers are treated in a humane and decent manner and are paid fair and wages (Primark 2013). However, in the recent times Primark has been in the eye of the storm owing to a range of issues that happen to go starkly contrary to the company’s professed code of conduct. This report intends to analyze the fact as to how Primark lives up to its ethical claims by considering the performance of Primark over a range of ethical parameters like the international codes of labour practice, complying with environmental norms, affiliating to corporate ethics and animal testing of produ cts. The report in the light of the conclusions drawn from this analysis also intends to facilitate some recommendations. 2.0 Discussion A careful perusal of the official website of Primark testifies to the fact that formally speaking the company has a code of ethics in place that claims allegiance to a range of imperatives pertaining to labour practices, environment, animal rights and ethical corporate practices. However, an extensive research into the media reports tells a different story. In the light of the available facts, it will be utterly insightful to analyze the ethical claims of Primark over a range of parameters. 2.1 Labour Practices The official code of ethics promulgated by Primark expects its suppliers to assure that the products supplied to Primark are made in working conditions that are good, safe, hygienic and humane (Primark 2013). The company also expects the suppliers and factories manufacturing Primark products to make it certain that at no time and in no way t hey violate internationally recognized codes of labour practice and abstain from practices like child labour, forced labour, paying unfair wages, excessive working hours, and meting inhuman and illegal treatment to workers (Primark 2013). Moreover, Primark joined Ethical Trading Initiative in 2006, an organization that tends to solicit the support and cooperation of a range of stakeholders like Non-government Organizations, corporations and trade

Creation vs. Evolution Essay Example | Topics and Well Written Essays - 1500 words

Creation vs. Evolution - Essay Example His investigation techniques entailed interviewing adept scholars who possessed extensive knowledge on creationism and evolutionism. Strobel outlines his arguments in a systematic way, easy to critic, understand and draw valid conclusions. However, relying solely on the arguments presented in Lee Strobel’s literal pieces limits ones understanding of the creationism vs. evolutionism argument. Therefore, discussed in this paper is a review of the philosophical foundations for both arguments and their impact on people’s understanding of earth’s origin (Moore 203). Arguments for the existence of God surfaced in the era of philosophers who lived in a period where logic and reasoning proved crucial to understanding and explaining the occurrence or existence of different phenomena. Majority of these philosophers’ beliefs, values and moral principles had their basis in religion, which revolved around the premise of the existence of an all-powerful, good God. An ov erview of the pre-historic philosophers indicates that each group believed in a superior element that had control over the functioning of all other elements. It is presumable that their choice of superior elements such as fire, water, and air functioned as a symbolic reference to a supreme deity that controlled the functioning of other aspects such as sustaining life on earth. Through dogmatic indoctrination, individuals’ beliefs and knowledge concerning their origin and that of the earth centered on God. Moreover, Science was still a relatively new discipline characterized with continuously surfacing schools of thought that advanced different theories in their attempt to explain existing phenomena. As a result, both philosophers and the individuals who relied on their teachings found themselves embracing the creation account detailed in the Bible as an explanation to earth’s and other organism’s origin. Genesis provides a chronological order of the worldâ€℠¢s creation by an all-powerful, omniscient being (God). The zeitgeist of the philosophers’ era played a significant role in predisposing individuals to believe in creationism (Ross 166). The previously held presumptions soon changed with the advancement of Charles Darwin’s evolution theory. Darwin asserted that evolution guided the transformation of systems from simple forms to complex forms by undergoing mechanistic processes such as natural selection and mutation (Bowden 115). According to Darwin, the microevolution changes that occur to form complex structures are random and are not pre-designed by a supernatural force. Darwin asserted that these changes result from the innate need to survive, which causes organisms to adapt to their changing environment or risk facing imminent death that might result in the species extinction. Darwin’s evolution theory gained acceptance among many during the scientific era where people resorted to using empirical methods to test hypothesized theories. It is important to note that the scientific era sort to discredit religious explanations with regard to various phenomena (Bowden 116). The scientific era saw people critiquing issues using similar subject matter; for example, the principle of non-contradiction was used to refute the existence of God. The non-contradiction principle states that a statement cannot be true and false at the same time. In relation to the existence of

Analysis of SMEs in India

Analysis of SMEs in India What are SMEs? Small and medium enterprises (also SMEs, small and medium businesses, SMBs, and variations thereof) are companies whose headcount or turnover falls below certain limits. The lack of a universal definition for SMEs is often considered to be an obstacle for business studies and market research. Definitions in use today define thresholds in terms of employment, turnover and assets. They also incorporate a reasonable amount of flexibility around year-to-year changes in these measures so that a business qualifying as an SME in one year can have a reasonable expectation of remaining an SME in the next. The thresholds themselves, however, vary substantially between countries. As the SME thresholds dictate to some extent the provision of government support, countries in which manufacturing and labor-intensive industries are prioritized politically tend to opt for more relaxed thresholds. Definition of SMEs in Indian context The MSMED Act 2006, which came into force w.e.f. 02/10/2006, defines the Micro, Small, and Medium Enterprises. As per the Act, the activities are classified into Manufacturing and Service Category. Initially, the MSMED Act 2006 had not defined the ‘Services Sector and RBIs guidelines were awaited. However, subsequently RBI have defined the services sector and the activities that can be covered under the SME sector. The following chart indicates the threshold investment levels for both Manufacturing sector (INVESTMENT IN PLANT MACHINERY) and Services sector (INVESTMENT IN EQUIPMENT) for the above three categories of Manufacturing and Services Enterprises : While calculating the investment in plant and machinery/equipment referred to above, the original price thereof shall be taken into account,irrespective of whether the plant and machinery/equipment are new or second hand. In case of imported machinery/equipment, the following duty/charges/costs shall be included in calculating their value: Import Duty (not to include miscellaneous expenses such as transportation from the port to the site of the factory, demurrage paid at the port); Shipping Charges; Customs Clearance charges; and Sales Tax or Value-added Tax. Cost of the following plant machinery/equipments etc would be excluded:; equipments such as tools, jigs, dies, moulds, and spare parts for maintenance and the cost of consumable stores; installation of plant machinery; research and development and pollution control equipments; power generation set and extra transformer installed by the enterprises as per the Regulations of the State Electricity Board; Bank charges and Service Charges paid to the National Small Industries Corporation or the State Small Industries Corporation; Procurement or Installation of cables, wiring bus bars, electrical control panels (not mounted on individual machines) Oil circuit breakers or miniature circuit breakers which are necessarily to be used for providing electrical power to the plant and machinery or for safety measures; Gas producer plants; Transportation charges (other than sales tax or value-added tax and excise duty) for indigeneous machinery from the place of their manufacture to the site of the enterprise); Charges paid for technical know-how for erection of plant machinery; Such storage tanks which store raw materials and finished products only and are not linked with the manufacturing process; Fire-fighting equipment; and Such other items as may be specified, by notification from time to time. In case of Service Enterprises, the original cost to exclude furniture, fittings and other items not directly related to the services rendered. Land and Building would also not be included while computing the machinery/equipments cost. SME would be meant to include Micro Small and Medium Enterprises (MSMEs). The above definitions of Micro, Small and Medium Enterprises would be in place of the existing definitions of Small Medium Industries and SSSBEs/Tiny Enterprises. Micro Enterprises would include Tiny Industries also. Small Enterprises (Manufacturing) would mean Small Scale Industries (SSIs). Medium Enterprises (Manufacturing) would mean Medium Industries (MIs). Small Enterprises (Services) and Medium Enterprises(Services) would mean other Small Medium Enterprises. Thus, SME Advances would be categorised as under: All advances to segments viz. Micro, Small and Medium Enterprises in the Manufacturing sector irrespective of sanctioned limits, (including advances against TDRs/Govt. Securities etc for business purposes to these categories of Borrowers), and Advances to Services Sectors such as Professional Self-Employed, Small Business Enterprises, and Small Road/Water Transport Operators and other enterprises, engaged in providing/rendering of services, conforming to the above investment criteria and -enjoying borrowing/non-borrowing facilities with the Bank (including advances against TDRs/Govt. Securities etc for business purposes to these categories of Borrowers). Those enterprises exceeding the investment ceilings would be categorized as Large Enterprises and be outside the purview of SME. The sanctioned limits would no longer be the criteria determining the status as micro or small or medium enterprises in these cases. Reserve Bank of India has since reviewed the definition on Priority Sector and have issued revised guidelines on lending to Priority Sector vide their Master Circular dated 2nd July, 2007. As per this circular Retail Trade is excluded from the activities classified as SME. (Source: www.bankofindia.com) Importance of SMEs Small and medium-sized enterprises (SMEs) are the backbone of all economies and are a key source of economic growth, dynamism and flexibility in advanced industrialized countries, as well as in emerging and developing economies. SMEs constitute the dominant form of business organization, accounting for over 95% and up to 99% of enterprises depending on the country. They are responsible for between 60-70% net job creations in Developing countries. Small businesses are particularly important for bringing innovative products or techniques to the market. Microsoft may be a software giant today, but it started off in typical SME fashion, as a dream developed by a young student with the help of family and friends. Only when Bill Gates and his colleagues had a saleable product were they able to take it to the marketplace and look for investment from more traditional sources. SMEs are vital for economic growth and development in both industrialized and developing countries, by playing a key role in creating new jobs. Financing is necessary to help them set up and expand their operations, develop new products, and invest in new staff or production facilities. Many small businesses start out as an idea from one or two people, who invest their own money and probably turn to family and friends for financial help in return for a share in the business. But if they are successful, there comes a time for all developing SMEs when they need new investment to expand or innovate further. That is where they often run into problems, because they find it much harder than larger businesses to obtain financing from banks, capital markets or other suppliers of credit. Boosting industrial growth By enhancing existing capacities, and by delivering cost-efficient goods and services as per the requirements of the local markets, SMEs have been driving industrial growth. Inspiring Consumption and Social Change SMEs play a defining role by offering reasonable, yet revolutionary goods and services to cater to the changing market requirements. Currently, SMEs have made its presence felt in areas like education, medical care, transportation, entertainment and local infrastructure development. Minuscule investment SMEs need low capital investment, in terms of per unit of output Increased Employment Opportunities SMEs generate both direct and indirect employment opportunities, in 2006-07, for instance, for every ten million rupees invested by the SME sector spawned employment opportunities for over 150 people. However, the same amount of investment carried out by the overall economy generated employment for just 37. 4 people. As per Government statistics in 2007-08, SMEs generated employment for 31.25 million people. Fuelling the local economy SMEs make use of natural resources and domestic skills to cater to the domestic market. The growth of SME sector also helps in socio-economic upliftment as it generates employment opportunities for untapped masses, living in urban and rural regions. Discourages migration to urban areas SMEs are synonymous for entrepreneurship. And the best part being setting up an SME doesnt include much risk. If SMEs generate employment opportunities in rural and semi-urban areas, migration to urban areas can be stemmed to a great extent. Transition from Agriculture Economy to Service-oriented one SMEs can play a crucial role in achieving the transition from a dominant agricultural economy to a service oriented economy, akin to Japan. Japans agricultural workforce has gone done from 68 percent to 4.9 percent, in case of United States, from 44 percent to 9 percent. Further, Indian agriculture sector can no longer generate extra employment opportunities to meet the requirements of the ever-growing population. In such a situation, only SMEs can come to the nations rescue. SME in the global scenario Even in the global scenario SMEs have always played a crucial role in their respective countrys economy. International comparisons reveal that SMEs create the majority of jobs. In the USA, nearly half of the private workforce is employed in small firms, of which three-fifth have less than five employees. In Japan, 78 percent of jobs are generated by SMEs. The same sector in Korea accounts for 99 percent of all manufacturing enterprises and 69 percent of employment in this sector. Therefore, SMEs must play a central role in the countrys employment strategy. This will require modification of policies and programmes to level the playing field, improve availability of credit, increase productivity, raise quality consciousness and competitiveness, and enhance job quality. Recent experiences of different countries in the context of globalisation also demonstrate that SMEs are better insulated from the pressures generated by the volatility of world trade and capital markets. They are more resistant to the stresses, and more responsive to the demands of the fast-changing technologies and entrepreneurial responses. Indeed, they are observed to be a very important vehicle for new technology adoption and entrepreneurial development. Ensuring the competitiveness of the SMEs is important as it would help in overall growth of manufacturing sector as also the national economy. The Indian Context The micro, small and medium enterprises (MSME) sector contributes significantly to the manufacturing output, employment and exports of the country. It is estimated that in terms of value, the sector accounts for about 45 per cent of the manufacturing output and 40 percent of the total exports of the country. The sector is estimated to employ about 42 million persons in over 13 million units throughout the country. Further, this sector has consistently registered a higher growth rate than the rest of the industrial sector. There are over 6000 products ranging from traditional to high-tech items, which are being manufactured by the MSMEs in India. It is well known that the MSMEs provide the maximum opportunities for both self employment and jobs after agriculture. Recognizing the contribution and potential of the sector, the definitions and coverage of the MSE sector were broadened significantly under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 which recognized the concept of â€Å"enterprise† to include both manufacturing and services sector besides, defining the medium enterprises. For collecting and compiling the data for the MSME sector (including khadi, village and coir industries), the Fourth All India Census of MSMEs with reference year 2006-07, is being conducted in the country. The Census will provide the first database on the MSME sector after the enactment of MSME Development Act, 2006. PERFORMANCE OF MSEs As per the quick estimates of 4th All-India Census of MSMEs, the number ofenterprises is estimated to be about 26 million and these provide employment to an estimated60 million persons. Of the 26 million MSMEs, only 1.5 million are in theregistered segment while the remaining 24.5 million (94%) are in the unregistered segment. The State-wise distribution of MSMEs show that more than 55% of these enterprises are in 6 States, namely, Uttar Pradesh, Maharashtra, Tamil Nadu, West Bengal, Andhra Pradesh and Karnataka. Further, about 7% of MSMEs are owned by women and more than 94% of the MSMEs are proprietorships or partnerships. In view of the MSME sectors role in the economic and social development of the country, the Government has emphasized on its growth and development. It has taken various measures/initiatives from time to time which have facilitated the sectors ubiquitous growth. No discussion on MSMEs can be complete without a full treatment of the unorganized sector in which ent erprises are typically established through own funds or funds obtained through non-institutional sources, they lack managerial bandwidth, do not have established channels for marketing and are centered around a single traditional technology. More than 94 percent of MSMEs are unregistered, with a large number established in the informal or unorganized sector. The National Commission for Enterprises in the Unorganised Sector (NCEUS) defines unorganized sector as enterprise employing less than 10 workers. It has estimated such enterprises at 58 million with employment generated of 104 million persons. Of these, more than half the workers are classified as ‘self-employed. A large segment in this universe of self-employed consists of those who are engaged in non-farm activities. This segment predominantly consists of own account enterprises, i.e., where there are no hired workers and are run by self with or without the help of unpaid family members. The own account enterprises can be distinguished into those running within households and those outside the households. The household enterprises operate on the basis of family labour organizing production on its own, acquire its own raw material, use its own machinery and tools and market its products. Apart from own account enterprises, this segment also consists of enterprises having hired workers between 2 to 9. Very often, these enterprises are located in clusters but function independently without inter-firm linkages. The Office of the DC (MSME) provides estimates in respect of various performance parameters relating to the Sector. The time series data in respect of the Sector on various economic parameters, is incorporated in the following Table: MSEs Performance: Units, Investment, Production, Employment Exports The figures in brackets show the % growth over the previous year. Projected COMPARISON OF THE MSE SECTOR WITH THE OVERALL INDUSTRIAL SECTOR: The MSE sector has maintained a higher rate of growth vis-à  -vis the overall industrial sector as would be clear from the comparative growth rates of production for both the sectors during last five years as incorporated in the Table given below: Comparative Growth Rates CONTRIBUTION OF MSEs IN THE GROSS DOMESTIC PRODUCT (GDP) EMPLOYMENT IN MSE SECTOR The total employment from the MSE sector (including SSSBEs) in the country as per the Third All India Census of MSEs with reference Year 2001-02 was 249.33 lakh numbers. The units operating with fixed premises are treated as MSEs. As per the estimates compiled for the year 2007-08, the employment was 322.28 lakh persons in the sector. The share of MSEs in the total employment among units engaged in manufacturing and services is around 34.93%. Challenges faced by smes Mentoring Advocacy Even today, most small business in India are set up by first generation entrepreneurs. They often have a product or service idea, some money, a zest to hard work but limited knowledge about markets, Government or bank procedures, cash flows or how to manage labour. This is where mentoring a hand holding support becomes crucial. At times, this comes from an individual such as friend, relative, an NGO or a parent unit. This is episodic and unable to meet the vast requirement which the country has. This is sought to be institutionalized through extension/outreach efforts of central and state Governments. Trained manpower is made available for this task, right down the district levels, to act as the friend, philosopher and guide. These resource persons guide in setting up a evit, making it commercially viable, interacting with financial institutions and understanding markets, as well as the impact of globalisation with advancements in it. There is a strong more towards linking SMEs with bigger commodity or supply chain and providing acceptable quality and delivery schedules. The Central Governments agency for the task, the Small Industry Development Organisation, has accordingly moved away from its pre-reform regulatory to a direct promotional role of hand holding, advocacy and facilitation. This encompasses the legislative support put in place, fiscal incentives and protection from unequal competition. Credit Credit is the lifeline of business. Small businesses lack access to capital and money markets. Investors are unwilling to invest in proprietorships, partnerships or unlisted companies. As risk perception about small businesses is high. So is the cost of capital, institutional credit, when available, requires collateral which in turn makes the owner of the unit even more vulnerable to foreclosure. Credit guarantee funds which assist lending institution in advancing loans or mutual guarantee systems involving common guarantees from a group of people have not emerged in a significant manner. Unit finances comes under severe stress whenever an occasional event such as a large order, rejection of consignment, inordinate delay in payment occurs. The common stereotype about a banker lending an umbrella in sunshine and wanting it back as soon as it rains, gets reinforced in their dealing with small enterprises. It is, therefore, not surprising, that small enterprises prefer to first tap own resources or loans from friends and relatives and theres look for external finance. In India, many of small manufacturing enterprises do not access bank finance and only about 16% of total bank credit finds its way to the sector. Despite being a priority sector for lending, small manufacturing enterprises get just about 8% of their annual turnover as working capital requirements, as against normative requirements of 20%. Even for this, cost of credit is high. The problem is recognized and is sought to be addressed through various ways: Establishment of ISO 9000 certified, specialized SSI bank branches in districts/clusters. Directive for working capital finance @ 20% of annual normative turnover. Waiver of collateral requirements upto Rs. 0.5 million. Setting up of a credit Guarantee Trust to cover loans upto Rs. 2.5 million. Composite loans from a single agency upto Rs. 2.5 million. A national equity fund for equity to SSI units at 5 percent service charge Technology As mentioned earlier, small enterprises are often regarded for their labour intensity and the capability to work with local resources. In the part, this has often led to less emphasis on technology. Run of the mill technology coupled with functional packaging and inadequate finishing have at times led to small sector products being labeled as being of poor or substandard quality. This has a cascading impact on competitiveness. As small enterprises realize the need to link up with large ones, they are having a relook at technology options which would improve productivity, effectiveness and competitiveness. While sourcing technology, small business need to concentrate on the following essential issues: Information about Technology For small units information about technology options is often through word of mouth or from a visit to an advanced unit. With the advent of internet, new vistas are opening up through electronic journey catalogue downloads and advanced search facilities. The technology bureau for small enterprise promoted with the assistance of the UN offers access to databases and information on technology. Technology intervention in clusters offers near by units an opportunity for a look and feel of advanced technology entrepreneurs are also assisted to participate in overseas trade fairs to update tem with latest worldwide. Tool rooms, testing centres, production-cum-process centres and workshops also assist in this task. Actual procurement of technology Barriers to import technology, technology transfer issues, vendor capability, after sales support, import procedures impede procurement. In India, the Asia Pacific Centre to Transfer of Technology promotes match making between buyer and seller and facilities procurement through escort services. Encouragement to import of capital goods has also helped. Finance for Technology upgradation Small enterprises look to external sources of funding for upgrading technology as withdrawing money from business entails its own costs. In India, a technology upgradation and modernization fund and a hire purchase scheme attempts to meet this requirement. These are however, funds at normal lending costs. A new scheme called the credit linked capital subsidy scheme, for reducing the cost of funds, has now been put into place. Market Access In todays world, small enterprises can hardly match the adventising support or distribution reach of a large corporation. In India, small units sell best in limited or neighbourhood markets or when they are meeting a low volume specialized demand which no large player can effectively caterto. Increasingly, now the endeavour is to build the marketing activity of small units around their competitive advantage i.e., products which are labour intensive, items which cater to niche markets, low volume high margin products, sub assembly tasks, outsourcing jobs and ancillarisation. Sub-contracting exchanges are being established through Government and Industry associations to promote such interface. After sales service for imported products, AMCs on electronic equipment, reverse engineering (to the extent that it is WTO compatible) are the other areas being encouraged, sophisticated marketing is a task best left to large players. Small enterprises in India are realizing that the term â€Å" marketing† perhaps implies different things to different people for new SME businesses, head on competition with established giants makes little sense. Infrastructure Small units have traditionally operated from homes or a neighborhood work shed. Slowly, they began moving out and clustering together wherever electricity, water, raw materials, markets or labour were easier to access. Policy makers in India had anticipated the need for suitable infrastructure five decades ago and began a programme for setting up industrial estates. Non-assessment of economic viability, tardy implementation and poor maintenance due to drying up of funds affected these adversely. Later in the post reform period, the problem was sought to be addressed by setting up of such estates exclusively for small business. Almost 50 such estates have been set up. Because of their better infrastructure such as roads, telecommunication, power, effluent treatment plants, power, banks, watch ward, and reasonable cost, they have proved to be popular with small manufacturing for factory accommodation, allotment of sheds on hire purchase as well as outright sale etc. A concerted move h as also now been initiated for upgrading existing estates. Globalisation The globalisation of trade commerce has been given a push by agreements in the WTO and changed the business environment. It has therefore become necessary to sensitise SMEs about these changes and prepare them for the future. In India, a number of steps have been taken in this regard. Apart from setting up a WTO cell in the nodal ministry, 28 sensitization workshops were conducted across the country. Workshops have also been held on intellectual property rights and bar coding. Monitoring of imports in specific sectors where SMEs hae a significant presence and initiation of anti-dumping action where dumping was noticed, are the other steps taken in this respect. Procedures Government and bank procedures coupled with inspections remain a major hurdle in growth of small units. There are over 60 central, state and local laws which regulate small businesses in the areas of labour, factory maintenance environment, municipal bye laws, taxation, power etc. These require the maintenance of as many as 116 registers and forms. To enforce these, there is an army of inspector who visit units leading to harassment, delay, obstruction and increase in cost of production. Many small units are one man shows and cannot satisfy the letter of the law. The streamlining of such rules and regulations has become necessary if the creative genius of Indian entrepreneurs is to be fully unleashed. Some state governments have exhibited initiative in this regard. The Central Government has initiated a study to enact a single law for small businesses. This enactment should ease the situation considerably. Exit Mechanism Like products, Industries too have life cycles. There are industry segments which have seen their best days. Similarly, there are individual units where no amount of additional funds will help. Their bank loans have become bad and non performing. A sound exit policy which also safeguards labour interests has therefore, become necessary. It is anticipated that as of 1998, over Rs. 3.8 billion were locked in sick/weak units. An exit policy would help fresh circulation of a significant amount. The first steps in this regard have been taken recently by Indias central bank where by one time settlement of dues as on 31 March, 1997 was allowed. The results have been encouraging. Strategy Interventions for Revitalisation and Growth Significant charges in economic environment are being heralded in by the WTO. The removal of QRS has led to increased competition with imports. Many sectors of industry are facing competition from Chinese or Taiwanese imports within the country or from Bangladesh Srilanka or Nepal in export markets. It is the belief of the Indian Government that promotion and not protection is the answer to the issues of survival and growth. Thus, while reservation of items for exclusive production continues, the focus must now be on strengthening capabilities. This implies a holistic look at the concerns of industry. As part of this, the following strategic interventions have been initiated Easing access to general credit Introduction of options of limited partnership and factoring Subsiding cost of finance for upgrading technology Industry specific technology upgradation programmes Fund for developing and accessing overseas markets for export Expanding reach of infrastructure programmes Ushering in a regime of self certification in lien of inspections for various regulations Interventions in the future require that hurdles to growth are removed. They must encourage a seamless movement from small to medium to large. The Indian Government, therefore, is working on a new vision for the SSI sector through a flexible approach and a motivated team. The advocacy role of Government now involves new dimensions such as building up and arguing cases before the world trade body or dispute redressal for a, articulating needs of small enterprises before decision makers and other agencies. Credit is increasingly being made available at international rates. Technology upgrades at both the cluster and the individual level are being assisted. Cluster level technologies will be at Government cost with only user charges recovered credit guarantee scheme has been put in place if our market has opened up to due to WTO, we need to enable our small units established foot holds in new markets opened up for then by globalisation. Thus, along with improving quality, they are being given the opportunity of over seas travel, conducting market surveys, test marketing etc. The existing industrial centres are being revamped by involving industry associations with some government assistance and finally a migration from sunset industries to sunrise industries is being encouraged through a comprehensive and graceful exit policy, which balances interest of labour with those of the owners. Conclusion The singular contribution of SMEs is on account of their unique characteristics. Their role in economic activity is manifest in both tangible and intangible ways. If this contribution is to be sustained, then their uniqueness needs to be nurtured in an overt and explicit manner. The Indian experience has shown that it is possible to design targeted interventions be they area specific like clusters or be they sector / sub-sector or product-specific. Other countries, be they Asian or OECD, also have policies which aim at similar support. The need of the hour is for us to learn from each other, drawing upon experiences and identity best practice policies. These in turn have to meet local conditions and circumstances. A one size fits all approach will not work. Nevertheless, there can be no two opinions about the priority that SME policies deserve for achieving the socio-economic goal of employment growth and social justice, along with the individual aspirations. Recent Government Policies and Measures In addition to the growth potential of the sector and its critical role in the manufacturing and value chains, the heterogeneity and the unorganised nature of the Indian MSMEs are important aspects that need to be factored into policy making an Analysis of SMEs in India Analysis of SMEs in India What are SMEs? Small and medium enterprises (also SMEs, small and medium businesses, SMBs, and variations thereof) are companies whose headcount or turnover falls below certain limits. The lack of a universal definition for SMEs is often considered to be an obstacle for business studies and market research. Definitions in use today define thresholds in terms of employment, turnover and assets. They also incorporate a reasonable amount of flexibility around year-to-year changes in these measures so that a business qualifying as an SME in one year can have a reasonable expectation of remaining an SME in the next. The thresholds themselves, however, vary substantially between countries. As the SME thresholds dictate to some extent the provision of government support, countries in which manufacturing and labor-intensive industries are prioritized politically tend to opt for more relaxed thresholds. Definition of SMEs in Indian context The MSMED Act 2006, which came into force w.e.f. 02/10/2006, defines the Micro, Small, and Medium Enterprises. As per the Act, the activities are classified into Manufacturing and Service Category. Initially, the MSMED Act 2006 had not defined the ‘Services Sector and RBIs guidelines were awaited. However, subsequently RBI have defined the services sector and the activities that can be covered under the SME sector. The following chart indicates the threshold investment levels for both Manufacturing sector (INVESTMENT IN PLANT MACHINERY) and Services sector (INVESTMENT IN EQUIPMENT) for the above three categories of Manufacturing and Services Enterprises : While calculating the investment in plant and machinery/equipment referred to above, the original price thereof shall be taken into account,irrespective of whether the plant and machinery/equipment are new or second hand. In case of imported machinery/equipment, the following duty/charges/costs shall be included in calculating their value: Import Duty (not to include miscellaneous expenses such as transportation from the port to the site of the factory, demurrage paid at the port); Shipping Charges; Customs Clearance charges; and Sales Tax or Value-added Tax. Cost of the following plant machinery/equipments etc would be excluded:; equipments such as tools, jigs, dies, moulds, and spare parts for maintenance and the cost of consumable stores; installation of plant machinery; research and development and pollution control equipments; power generation set and extra transformer installed by the enterprises as per the Regulations of the State Electricity Board; Bank charges and Service Charges paid to the National Small Industries Corporation or the State Small Industries Corporation; Procurement or Installation of cables, wiring bus bars, electrical control panels (not mounted on individual machines) Oil circuit breakers or miniature circuit breakers which are necessarily to be used for providing electrical power to the plant and machinery or for safety measures; Gas producer plants; Transportation charges (other than sales tax or value-added tax and excise duty) for indigeneous machinery from the place of their manufacture to the site of the enterprise); Charges paid for technical know-how for erection of plant machinery; Such storage tanks which store raw materials and finished products only and are not linked with the manufacturing process; Fire-fighting equipment; and Such other items as may be specified, by notification from time to time. In case of Service Enterprises, the original cost to exclude furniture, fittings and other items not directly related to the services rendered. Land and Building would also not be included while computing the machinery/equipments cost. SME would be meant to include Micro Small and Medium Enterprises (MSMEs). The above definitions of Micro, Small and Medium Enterprises would be in place of the existing definitions of Small Medium Industries and SSSBEs/Tiny Enterprises. Micro Enterprises would include Tiny Industries also. Small Enterprises (Manufacturing) would mean Small Scale Industries (SSIs). Medium Enterprises (Manufacturing) would mean Medium Industries (MIs). Small Enterprises (Services) and Medium Enterprises(Services) would mean other Small Medium Enterprises. Thus, SME Advances would be categorised as under: All advances to segments viz. Micro, Small and Medium Enterprises in the Manufacturing sector irrespective of sanctioned limits, (including advances against TDRs/Govt. Securities etc for business purposes to these categories of Borrowers), and Advances to Services Sectors such as Professional Self-Employed, Small Business Enterprises, and Small Road/Water Transport Operators and other enterprises, engaged in providing/rendering of services, conforming to the above investment criteria and -enjoying borrowing/non-borrowing facilities with the Bank (including advances against TDRs/Govt. Securities etc for business purposes to these categories of Borrowers). Those enterprises exceeding the investment ceilings would be categorized as Large Enterprises and be outside the purview of SME. The sanctioned limits would no longer be the criteria determining the status as micro or small or medium enterprises in these cases. Reserve Bank of India has since reviewed the definition on Priority Sector and have issued revised guidelines on lending to Priority Sector vide their Master Circular dated 2nd July, 2007. As per this circular Retail Trade is excluded from the activities classified as SME. (Source: www.bankofindia.com) Importance of SMEs Small and medium-sized enterprises (SMEs) are the backbone of all economies and are a key source of economic growth, dynamism and flexibility in advanced industrialized countries, as well as in emerging and developing economies. SMEs constitute the dominant form of business organization, accounting for over 95% and up to 99% of enterprises depending on the country. They are responsible for between 60-70% net job creations in Developing countries. Small businesses are particularly important for bringing innovative products or techniques to the market. Microsoft may be a software giant today, but it started off in typical SME fashion, as a dream developed by a young student with the help of family and friends. Only when Bill Gates and his colleagues had a saleable product were they able to take it to the marketplace and look for investment from more traditional sources. SMEs are vital for economic growth and development in both industrialized and developing countries, by playing a key role in creating new jobs. Financing is necessary to help them set up and expand their operations, develop new products, and invest in new staff or production facilities. Many small businesses start out as an idea from one or two people, who invest their own money and probably turn to family and friends for financial help in return for a share in the business. But if they are successful, there comes a time for all developing SMEs when they need new investment to expand or innovate further. That is where they often run into problems, because they find it much harder than larger businesses to obtain financing from banks, capital markets or other suppliers of credit. Boosting industrial growth By enhancing existing capacities, and by delivering cost-efficient goods and services as per the requirements of the local markets, SMEs have been driving industrial growth. Inspiring Consumption and Social Change SMEs play a defining role by offering reasonable, yet revolutionary goods and services to cater to the changing market requirements. Currently, SMEs have made its presence felt in areas like education, medical care, transportation, entertainment and local infrastructure development. Minuscule investment SMEs need low capital investment, in terms of per unit of output Increased Employment Opportunities SMEs generate both direct and indirect employment opportunities, in 2006-07, for instance, for every ten million rupees invested by the SME sector spawned employment opportunities for over 150 people. However, the same amount of investment carried out by the overall economy generated employment for just 37. 4 people. As per Government statistics in 2007-08, SMEs generated employment for 31.25 million people. Fuelling the local economy SMEs make use of natural resources and domestic skills to cater to the domestic market. The growth of SME sector also helps in socio-economic upliftment as it generates employment opportunities for untapped masses, living in urban and rural regions. Discourages migration to urban areas SMEs are synonymous for entrepreneurship. And the best part being setting up an SME doesnt include much risk. If SMEs generate employment opportunities in rural and semi-urban areas, migration to urban areas can be stemmed to a great extent. Transition from Agriculture Economy to Service-oriented one SMEs can play a crucial role in achieving the transition from a dominant agricultural economy to a service oriented economy, akin to Japan. Japans agricultural workforce has gone done from 68 percent to 4.9 percent, in case of United States, from 44 percent to 9 percent. Further, Indian agriculture sector can no longer generate extra employment opportunities to meet the requirements of the ever-growing population. In such a situation, only SMEs can come to the nations rescue. SME in the global scenario Even in the global scenario SMEs have always played a crucial role in their respective countrys economy. International comparisons reveal that SMEs create the majority of jobs. In the USA, nearly half of the private workforce is employed in small firms, of which three-fifth have less than five employees. In Japan, 78 percent of jobs are generated by SMEs. The same sector in Korea accounts for 99 percent of all manufacturing enterprises and 69 percent of employment in this sector. Therefore, SMEs must play a central role in the countrys employment strategy. This will require modification of policies and programmes to level the playing field, improve availability of credit, increase productivity, raise quality consciousness and competitiveness, and enhance job quality. Recent experiences of different countries in the context of globalisation also demonstrate that SMEs are better insulated from the pressures generated by the volatility of world trade and capital markets. They are more resistant to the stresses, and more responsive to the demands of the fast-changing technologies and entrepreneurial responses. Indeed, they are observed to be a very important vehicle for new technology adoption and entrepreneurial development. Ensuring the competitiveness of the SMEs is important as it would help in overall growth of manufacturing sector as also the national economy. The Indian Context The micro, small and medium enterprises (MSME) sector contributes significantly to the manufacturing output, employment and exports of the country. It is estimated that in terms of value, the sector accounts for about 45 per cent of the manufacturing output and 40 percent of the total exports of the country. The sector is estimated to employ about 42 million persons in over 13 million units throughout the country. Further, this sector has consistently registered a higher growth rate than the rest of the industrial sector. There are over 6000 products ranging from traditional to high-tech items, which are being manufactured by the MSMEs in India. It is well known that the MSMEs provide the maximum opportunities for both self employment and jobs after agriculture. Recognizing the contribution and potential of the sector, the definitions and coverage of the MSE sector were broadened significantly under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 which recognized the concept of â€Å"enterprise† to include both manufacturing and services sector besides, defining the medium enterprises. For collecting and compiling the data for the MSME sector (including khadi, village and coir industries), the Fourth All India Census of MSMEs with reference year 2006-07, is being conducted in the country. The Census will provide the first database on the MSME sector after the enactment of MSME Development Act, 2006. PERFORMANCE OF MSEs As per the quick estimates of 4th All-India Census of MSMEs, the number ofenterprises is estimated to be about 26 million and these provide employment to an estimated60 million persons. Of the 26 million MSMEs, only 1.5 million are in theregistered segment while the remaining 24.5 million (94%) are in the unregistered segment. The State-wise distribution of MSMEs show that more than 55% of these enterprises are in 6 States, namely, Uttar Pradesh, Maharashtra, Tamil Nadu, West Bengal, Andhra Pradesh and Karnataka. Further, about 7% of MSMEs are owned by women and more than 94% of the MSMEs are proprietorships or partnerships. In view of the MSME sectors role in the economic and social development of the country, the Government has emphasized on its growth and development. It has taken various measures/initiatives from time to time which have facilitated the sectors ubiquitous growth. No discussion on MSMEs can be complete without a full treatment of the unorganized sector in which ent erprises are typically established through own funds or funds obtained through non-institutional sources, they lack managerial bandwidth, do not have established channels for marketing and are centered around a single traditional technology. More than 94 percent of MSMEs are unregistered, with a large number established in the informal or unorganized sector. The National Commission for Enterprises in the Unorganised Sector (NCEUS) defines unorganized sector as enterprise employing less than 10 workers. It has estimated such enterprises at 58 million with employment generated of 104 million persons. Of these, more than half the workers are classified as ‘self-employed. A large segment in this universe of self-employed consists of those who are engaged in non-farm activities. This segment predominantly consists of own account enterprises, i.e., where there are no hired workers and are run by self with or without the help of unpaid family members. The own account enterprises can be distinguished into those running within households and those outside the households. The household enterprises operate on the basis of family labour organizing production on its own, acquire its own raw material, use its own machinery and tools and market its products. Apart from own account enterprises, this segment also consists of enterprises having hired workers between 2 to 9. Very often, these enterprises are located in clusters but function independently without inter-firm linkages. The Office of the DC (MSME) provides estimates in respect of various performance parameters relating to the Sector. The time series data in respect of the Sector on various economic parameters, is incorporated in the following Table: MSEs Performance: Units, Investment, Production, Employment Exports The figures in brackets show the % growth over the previous year. Projected COMPARISON OF THE MSE SECTOR WITH THE OVERALL INDUSTRIAL SECTOR: The MSE sector has maintained a higher rate of growth vis-à  -vis the overall industrial sector as would be clear from the comparative growth rates of production for both the sectors during last five years as incorporated in the Table given below: Comparative Growth Rates CONTRIBUTION OF MSEs IN THE GROSS DOMESTIC PRODUCT (GDP) EMPLOYMENT IN MSE SECTOR The total employment from the MSE sector (including SSSBEs) in the country as per the Third All India Census of MSEs with reference Year 2001-02 was 249.33 lakh numbers. The units operating with fixed premises are treated as MSEs. As per the estimates compiled for the year 2007-08, the employment was 322.28 lakh persons in the sector. The share of MSEs in the total employment among units engaged in manufacturing and services is around 34.93%. Challenges faced by smes Mentoring Advocacy Even today, most small business in India are set up by first generation entrepreneurs. They often have a product or service idea, some money, a zest to hard work but limited knowledge about markets, Government or bank procedures, cash flows or how to manage labour. This is where mentoring a hand holding support becomes crucial. At times, this comes from an individual such as friend, relative, an NGO or a parent unit. This is episodic and unable to meet the vast requirement which the country has. This is sought to be institutionalized through extension/outreach efforts of central and state Governments. Trained manpower is made available for this task, right down the district levels, to act as the friend, philosopher and guide. These resource persons guide in setting up a evit, making it commercially viable, interacting with financial institutions and understanding markets, as well as the impact of globalisation with advancements in it. There is a strong more towards linking SMEs with bigger commodity or supply chain and providing acceptable quality and delivery schedules. The Central Governments agency for the task, the Small Industry Development Organisation, has accordingly moved away from its pre-reform regulatory to a direct promotional role of hand holding, advocacy and facilitation. This encompasses the legislative support put in place, fiscal incentives and protection from unequal competition. Credit Credit is the lifeline of business. Small businesses lack access to capital and money markets. Investors are unwilling to invest in proprietorships, partnerships or unlisted companies. As risk perception about small businesses is high. So is the cost of capital, institutional credit, when available, requires collateral which in turn makes the owner of the unit even more vulnerable to foreclosure. Credit guarantee funds which assist lending institution in advancing loans or mutual guarantee systems involving common guarantees from a group of people have not emerged in a significant manner. Unit finances comes under severe stress whenever an occasional event such as a large order, rejection of consignment, inordinate delay in payment occurs. The common stereotype about a banker lending an umbrella in sunshine and wanting it back as soon as it rains, gets reinforced in their dealing with small enterprises. It is, therefore, not surprising, that small enterprises prefer to first tap own resources or loans from friends and relatives and theres look for external finance. In India, many of small manufacturing enterprises do not access bank finance and only about 16% of total bank credit finds its way to the sector. Despite being a priority sector for lending, small manufacturing enterprises get just about 8% of their annual turnover as working capital requirements, as against normative requirements of 20%. Even for this, cost of credit is high. The problem is recognized and is sought to be addressed through various ways: Establishment of ISO 9000 certified, specialized SSI bank branches in districts/clusters. Directive for working capital finance @ 20% of annual normative turnover. Waiver of collateral requirements upto Rs. 0.5 million. Setting up of a credit Guarantee Trust to cover loans upto Rs. 2.5 million. Composite loans from a single agency upto Rs. 2.5 million. A national equity fund for equity to SSI units at 5 percent service charge Technology As mentioned earlier, small enterprises are often regarded for their labour intensity and the capability to work with local resources. In the part, this has often led to less emphasis on technology. Run of the mill technology coupled with functional packaging and inadequate finishing have at times led to small sector products being labeled as being of poor or substandard quality. This has a cascading impact on competitiveness. As small enterprises realize the need to link up with large ones, they are having a relook at technology options which would improve productivity, effectiveness and competitiveness. While sourcing technology, small business need to concentrate on the following essential issues: Information about Technology For small units information about technology options is often through word of mouth or from a visit to an advanced unit. With the advent of internet, new vistas are opening up through electronic journey catalogue downloads and advanced search facilities. The technology bureau for small enterprise promoted with the assistance of the UN offers access to databases and information on technology. Technology intervention in clusters offers near by units an opportunity for a look and feel of advanced technology entrepreneurs are also assisted to participate in overseas trade fairs to update tem with latest worldwide. Tool rooms, testing centres, production-cum-process centres and workshops also assist in this task. Actual procurement of technology Barriers to import technology, technology transfer issues, vendor capability, after sales support, import procedures impede procurement. In India, the Asia Pacific Centre to Transfer of Technology promotes match making between buyer and seller and facilities procurement through escort services. Encouragement to import of capital goods has also helped. Finance for Technology upgradation Small enterprises look to external sources of funding for upgrading technology as withdrawing money from business entails its own costs. In India, a technology upgradation and modernization fund and a hire purchase scheme attempts to meet this requirement. These are however, funds at normal lending costs. A new scheme called the credit linked capital subsidy scheme, for reducing the cost of funds, has now been put into place. Market Access In todays world, small enterprises can hardly match the adventising support or distribution reach of a large corporation. In India, small units sell best in limited or neighbourhood markets or when they are meeting a low volume specialized demand which no large player can effectively caterto. Increasingly, now the endeavour is to build the marketing activity of small units around their competitive advantage i.e., products which are labour intensive, items which cater to niche markets, low volume high margin products, sub assembly tasks, outsourcing jobs and ancillarisation. Sub-contracting exchanges are being established through Government and Industry associations to promote such interface. After sales service for imported products, AMCs on electronic equipment, reverse engineering (to the extent that it is WTO compatible) are the other areas being encouraged, sophisticated marketing is a task best left to large players. Small enterprises in India are realizing that the term â€Å" marketing† perhaps implies different things to different people for new SME businesses, head on competition with established giants makes little sense. Infrastructure Small units have traditionally operated from homes or a neighborhood work shed. Slowly, they began moving out and clustering together wherever electricity, water, raw materials, markets or labour were easier to access. Policy makers in India had anticipated the need for suitable infrastructure five decades ago and began a programme for setting up industrial estates. Non-assessment of economic viability, tardy implementation and poor maintenance due to drying up of funds affected these adversely. Later in the post reform period, the problem was sought to be addressed by setting up of such estates exclusively for small business. Almost 50 such estates have been set up. Because of their better infrastructure such as roads, telecommunication, power, effluent treatment plants, power, banks, watch ward, and reasonable cost, they have proved to be popular with small manufacturing for factory accommodation, allotment of sheds on hire purchase as well as outright sale etc. A concerted move h as also now been initiated for upgrading existing estates. Globalisation The globalisation of trade commerce has been given a push by agreements in the WTO and changed the business environment. It has therefore become necessary to sensitise SMEs about these changes and prepare them for the future. In India, a number of steps have been taken in this regard. Apart from setting up a WTO cell in the nodal ministry, 28 sensitization workshops were conducted across the country. Workshops have also been held on intellectual property rights and bar coding. Monitoring of imports in specific sectors where SMEs hae a significant presence and initiation of anti-dumping action where dumping was noticed, are the other steps taken in this respect. Procedures Government and bank procedures coupled with inspections remain a major hurdle in growth of small units. There are over 60 central, state and local laws which regulate small businesses in the areas of labour, factory maintenance environment, municipal bye laws, taxation, power etc. These require the maintenance of as many as 116 registers and forms. To enforce these, there is an army of inspector who visit units leading to harassment, delay, obstruction and increase in cost of production. Many small units are one man shows and cannot satisfy the letter of the law. The streamlining of such rules and regulations has become necessary if the creative genius of Indian entrepreneurs is to be fully unleashed. Some state governments have exhibited initiative in this regard. The Central Government has initiated a study to enact a single law for small businesses. This enactment should ease the situation considerably. Exit Mechanism Like products, Industries too have life cycles. There are industry segments which have seen their best days. Similarly, there are individual units where no amount of additional funds will help. Their bank loans have become bad and non performing. A sound exit policy which also safeguards labour interests has therefore, become necessary. It is anticipated that as of 1998, over Rs. 3.8 billion were locked in sick/weak units. An exit policy would help fresh circulation of a significant amount. The first steps in this regard have been taken recently by Indias central bank where by one time settlement of dues as on 31 March, 1997 was allowed. The results have been encouraging. Strategy Interventions for Revitalisation and Growth Significant charges in economic environment are being heralded in by the WTO. The removal of QRS has led to increased competition with imports. Many sectors of industry are facing competition from Chinese or Taiwanese imports within the country or from Bangladesh Srilanka or Nepal in export markets. It is the belief of the Indian Government that promotion and not protection is the answer to the issues of survival and growth. Thus, while reservation of items for exclusive production continues, the focus must now be on strengthening capabilities. This implies a holistic look at the concerns of industry. As part of this, the following strategic interventions have been initiated Easing access to general credit Introduction of options of limited partnership and factoring Subsiding cost of finance for upgrading technology Industry specific technology upgradation programmes Fund for developing and accessing overseas markets for export Expanding reach of infrastructure programmes Ushering in a regime of self certification in lien of inspections for various regulations Interventions in the future require that hurdles to growth are removed. They must encourage a seamless movement from small to medium to large. The Indian Government, therefore, is working on a new vision for the SSI sector through a flexible approach and a motivated team. The advocacy role of Government now involves new dimensions such as building up and arguing cases before the world trade body or dispute redressal for a, articulating needs of small enterprises before decision makers and other agencies. Credit is increasingly being made available at international rates. Technology upgrades at both the cluster and the individual level are being assisted. Cluster level technologies will be at Government cost with only user charges recovered credit guarantee scheme has been put in place if our market has opened up to due to WTO, we need to enable our small units established foot holds in new markets opened up for then by globalisation. Thus, along with improving quality, they are being given the opportunity of over seas travel, conducting market surveys, test marketing etc. The existing industrial centres are being revamped by involving industry associations with some government assistance and finally a migration from sunset industries to sunrise industries is being encouraged through a comprehensive and graceful exit policy, which balances interest of labour with those of the owners. Conclusion The singular contribution of SMEs is on account of their unique characteristics. Their role in economic activity is manifest in both tangible and intangible ways. If this contribution is to be sustained, then their uniqueness needs to be nurtured in an overt and explicit manner. The Indian experience has shown that it is possible to design targeted interventions be they area specific like clusters or be they sector / sub-sector or product-specific. Other countries, be they Asian or OECD, also have policies which aim at similar support. The need of the hour is for us to learn from each other, drawing upon experiences and identity best practice policies. These in turn have to meet local conditions and circumstances. A one size fits all approach will not work. Nevertheless, there can be no two opinions about the priority that SME policies deserve for achieving the socio-economic goal of employment growth and social justice, along with the individual aspirations. Recent Government Policies and Measures In addition to the growth potential of the sector and its critical role in the manufacturing and value chains, the heterogeneity and the unorganised nature of the Indian MSMEs are important aspects that need to be factored into policy making an