Organizational Challenges in the Indian SME Sector: An Exploration

Abstract

There has been an increasing level of interest, among government and industry constituents, in the growth of the SME sector in India. There is today a recognized need felt for the transformation of firms in this sector from a hitherto 'family-owned-and-run' orientation to a more 'professionally managed' one. This transformational process unfolds several challenges to the organizations in the SME sector. This exploratory study, on a sample of auto-components firms in the SME sector, located in the National Capital Region of Delhi, has the objective of furthering our understanding of the specific challenges faced by these organizations. The case-study method has been used to carry out this study. Areas in this sector that need immediate attention have been identified. A couple of propositions based on this study, related to the source of organizational transformation and to the major challenge to firms in this industry, have also been put forth