ICT for SMEs
The Small & Medium Enterprises (SME) sector is one of the fastest growing industrial sectors all over the world.
Many countries of the world have established a SME Development Agency (SMEDA) as the nodal agency to coordinate and oversee all Government interventions in respect of the development of this sector. In India, the agencies working at various levels are-
- SIDO (Under Ministry of Small Scale Industry)
- UNIDO (United Nations Industrial Development Organisation)
- EU Commission (European Union)
- OECD (Organisation for Economic Co-operation and Development)
- DFID (Department for International Development)
Whereas in the old economy land, labor and capital were the only three generic factors of production, in the new economy, the critical assets are know-how, creativity, intelligence and information. Intelligence embedded in software and technology across a wide range of products has become more important than capital, materials, or labor.
Production has been witnessing exponential knowledge intensification. The knowledge intensity of world manufactured exports remained largely unchanged from 1970-1977, but has since increased steadily and persistently. As early as in 1996 it was estimated that more than 50% of the GDP in OECD (Organisation for Economic Co-operation and Development) economies is knowledge-based.
The role of ICT thus becomes vital in Development of SMEs at all levels - manufacturing, distribution, learning, marketing, business intelligence and managing resources.
The key to survival of SMEs in the global economy is to be empowered by the knowledge and use it to enhance their competitiveness.
