Международный журнал экономики и менеджмента

Productivity or Production: Appraising Growth Solution for Indian SMEs

Abstract

Sangeeta Sharma, Kunal Vashisth and Tavishi Sharma

In an era of continuing rising prices of commodities, fluctuating energy costs, high taxes, government regulations, capital shortage, worker dissatisfaction, intense foreign competition and inadequate productivity, throws a big challenge in managing manufacturing unit in SME sector. The performance of Indian SMEs is deteriorating rapidly and continually. For making these firms on track, certain patented methods and techniques need to be implemented for reducing the cost of manufacture. As the global companies are putting best drives to cut down the manufacturing cost by using all practices at par with productivity concept, it has been seen that Indian SMEs are still a victim of production or quantity game. Such a production-oriented philosophy is eroding its growth. In this context, we have put efforts to understand the concept of productivity as understood by SMEs and the status of its implementation in manufacturing system which has been found alarming. Based on the research findings, we have suggested certain drivers which need to be run immediately for the sustainability and growth. The paper further discusses the implications of study and highlights the new streams for future researchers in this area.