International Journal of Business Management & Research (IJBMR) ISSN 2249-6920 Vol.

3, Issue 1, Mar 2013, 21-30 TJPRC Pvt. Ltd.

A STUDY ON BUSINESS GROWTH OF MSMES IN THOOTHUKUDI DISTRICT BEFORE AND AFTER REGISTERING DIC
M.SEKAR1, M.SHANMUGASUNDRAM2 & M.GANASEN3
1

Head, School of Business Management, Rathnavel Subramaniam College of Arts & Science, Coimbatore, India
2

Department of Business Administration, Kalasalingam University, KrishnanKovil, Tamilnadu, India

3

Dean, Sri Venkateswara Institute of Information Technology and Management, Coimbatore, India

ABSTRACT
Small industries provide ample opportunity for entrepreneurship. The latent skills and talents of people can be channeled into business ideas which can be converted into reality with little capital investment and almost nil formalities to start a small business. Small industries also enjoy the advantage of low cost of production. Locally available resources are less expensive. Establishment and running costs of small industries are on the lower side because of low overhead expenses. The Government of India has assigned importance to small scale sector in India's national plans. In order to protect, support and promote small enterprises as also to help them become self-supporting, a number of protective and promotional measures have been undertaken by the Government. The promotional measures cover industrial extension services, institutional support in respect of credit facilities, provision of developed sites for construction of sheds, provision of training facilities, supply of machinery on hire-purchase terms, assistance for domestic marketing as well as exports, special incentive for setting up enterprises in backward areas etc., technical consultancy and financial assistance for technological up gradation.

KEYWORDS: Small Scale Industries (SSI), Micro, Small and Medium Scale Industries (MSMEs), District Industries
Centre (DIC), Business Growth, Entrepreneurs, Promotions

INTRODUCTION
The Indian economy has entered a phase of high growth in the recent years, after a long period of low growth. Since economic growth itself is not sufficient to achieve economic development, the concern of policy makers seems to have shifted towards making the growth inclusive a process wherein employment is at its core. In India, Micro, Small and Medium Scale Industries (MSMEs,) plays an important role in employment generation. After reforms the protection SSI enjoyed from government has been abolished and exposed MSEMs into greater market competition. To meet this heightened competition they have to improve their productivity and competitiveness through policy reforms, subsidies, institutional support and technological improvement. Though there are many factors responsible for growth of SSI units in India, in this study researcher aims to analyse the role of DIC in promotion of SSI units. Since, in India, prior to reforms, state as an important institution used policies to balance between small and large scale sector through protection. However, after reforms state has introduced policies which encourage SSIs to be of more vitality and growth oriented via achieving competitiveness in the global market. Yet, it is surprising to note that the vibrancy and dynamism anticipated under an era of de-regulation and de-reservation, it remained largely unrealized. Statement of Problem Small scale sector is one of the success stories of the modern India. Its success is writ large over the face of the country and is equally visible all around. This is a sector that has emerged victorious in the face of rising threats from large sector inside and from multi-nationals abroad. Government Institute like DIC provides support / services to the State

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M.Sekar, M.Shanmugasundram & M.Ganasen

Government as well as co-ordinates various activities at the state level for promotion and development of small scale industries. Functions of DICs included: conducting industrial potential surveys keeping in view the availability of resources in terms of material and human skills, infrastructure, demand etc. Preparing an action plan for effective implementation of the schemes identified. To guide entrepreneurs to select most appropriate machinery and equipments etc. This empirical research article aims to analyse the perception of MSMEs about nature of business growth experienced by them before and after registering in DIC Aim of the Study The study aims to analyse the role of District Industrial Center in Promotion of Small Scale Industries, a study with special references to Thoothukudi District, Tamilnadu.

REVIEW OF LITERATURE
V. Balasubramanian (1992) in his dissertation titled A Study of Industrial Development in the Composite Ramanadu District, suggested that DIC should make arrangements for adequate supply of raw materials and take more efforts to help the entrepreneurs to their finished products, instead of simply directing them to approach SIDCO. He was also suggested that at least 40 percent of the project cost should be granted as margin money assistance, instead of the present 25 per cent. Baldwin et al (1994) report that small and medium-sized firms have experienced that skilled labor is one of the most important factors contributing to their growth. To be successful in a global market, a small firm needs a highly motivated, skilled and satisfied workforce that can produce at low costs. Chandrika (1990) in her dissertation A Study of DIC in Madurai District During 1980-90, has analysed the various schemes of DIC. In her conclusion, she suggested that there should be a branch office of DIC at each and every taluk head quarters to promote the small-scale units. Further, it was suggested that various schemes of DIC should be given wide publicity. Srivasatava and Rajput (1995) in their article titled Sick SSI units in India: Role of Commercial Banks, mentioned that though a number of steps were being taken by commercial banks in nourishing SSI units, it was difficult to bring the sick SSI units on to the right track. For example, the industrys exposure to SSI as a percentage of total advances has ranged between 15 and 18 per cent. But the recovery percentage had lowered to about 35 percent, much below the minimum of 60 per cent for a viable recycling of funds. Safizadeh et al. (1996) reveals the key factor to survival and prosperity of small businesses in this decade and beyond will likely rest on their ability to successfully exploit and benefit from the rapidly developing field of information processing in manufacturing. Lahiry (1997) in his article Rural Industrialization An Overview, pointed out that improvement of the economic conditions of the rural population was closely linked to the growth and development of rural industries. Rural industrialization should continue to be a central component of industrial policy and the Khadi and Village Industries Institutions should be strengthened in order to meet the challenges posed by rapid industrialization and intense competition due to the opening of the economy. The growth of the small-scale sector and its contribution to export had been impressive. However, the sector required further encouragement to be able to grow by tapping both domestic as well as international markets. Gulati (1997) in his research work comments that the SSI clusters in India are spread throughout the length and breadth of the country. There is no definite figure available on the number and size of these clusters. However, some of the estimates point out the existence of around 2000 clusters, most of which are located in the rural areas. These rural based clusters are artisan-based units that have grown in size with the passage of time. They use very simple manufacturing processes or techniques and the products are manufactured by the local artisans. The skill is transferred from one generation to another without any up-gradation in the methodology of manufacture or improvement in product quality.

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Some of the examples of products produced in such clusters are textile handicrafts, woodcarving, stone carving, metal ware etc. Anantha and Vishwanatha (2004) advocated improving the marketing competency, prompt supply of raw material, timely finance, technological up gradation of small-scale industries. A deeper understanding of the current strategic marketing decision making process in small businesses is necessary to raise the acceptance rates of interventions to improve the quality of strategic marketing decisions and consequently firm performance. The main constraints of small firms were customer dependency, skills and knowledge acquisition through training, poor learning attitude and networking because of their tradition of being autonomous). However, Indian firms are now coming forward to accepting professional management. Competition has been greatly acknowledged. The respondent firms are becoming outward-looking from inward-looking. Quality of product is playing great role to satisfy the customers, to capture the market, and meeting the competition challenges. The world market is becoming more and more quality conscious and creating pressure on the manufacturers to maintain quality standards. In order to overcome some of the inevitable managerial limitations within small companies, new product development activities should seek to promote a more systematic approach to design. Morris et al. (2006) found out that major problems faced by small scale industries is to deal with government requirement is of simplifying the laws and regulations ranging from Labor Compensation Act to Unionization Act which are required to be merged. Mathew (2004) highlighted the reason for panic in all India census report on small scale industries. The study observed that the vibrancy and dynamical of the sector anticipated under an era of deregulation and de-reservation remaining largely unrealized. The study stated that the country needs a strong small and medium enterprises policy, which was closely linked to its international commitments. The study suggested that at the strategy level, there were need to be mechanism by which the demography of small and medium enterprises sector itself becomes a matter of public security.

RESEARCH METHODOLOGY
The research methodology of the study is twofold: explorative and descriptive in nature. Thoothukudi District is selected as the study area. In the current study, multistage sampling techniques have been adopted. For the selection of Industrial blocks cluster based random sampling techniques were used and for the primary data collection from the sample SSI entrepreneurs from the sample blocks purposive sampling techniques have be applied. A well structured open and close ended interview schedule was used as data collection tool. Out of the 641 SSI units registered under DIC, 34 per cent were chosen for survey. Out of 12 industrial blocks currently functioning in Thoothukudi district 4 were chosen as the sample i.e., Kayathar, Kovilpatti, Toothukkudi and Tiruchendur. From each zone 57 per cent of the SSI units were chosen on purpose a base for collection of primary data, the total sample population is summed as 210 SSI entrepreneurs. Table 1: SSI Entrepreneurs Opinion on Business Growth in Terms of Working Capital and Asset Holding Positions Sl. No 1 2 3 4 5 Variables Land Buildings Machinery &equipment Furniture Others Significantly Improved 44(20.95) 33(15.71) 82(39.05) 37(17.62) 42(20.00) Improved Neutrals No Improvement 49(23.33) 39(18.57) 37(17.62) 43(20.48) 49(23.33) Total Sum 529 529 573 544 483 Mean 2.52 2.52 2.73 2.59 2.30 Rank 3 3 1 2 5

Fixed Capital 70(33.33) 47(22.38) 82(39.05) 56(26.67) 26(12.38) 93(45.29) 28(13.33) 65(30.95) 37(17.62) 91(43.33)

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M.Sekar, M.Shanmugasundram & M.Ganasen

Table 1: Contd., Sl. No 6 7 8 9 Variables Cash Stock Debtors Significantly Improved No Improvement Working Capital (Current Assets) 75(35.71) 56(26.67) 30(15.29) 49(23.33) 70(33.33) 23(10.95) 68(32.38) 49(23.33) 65(30.95) 68(32.38) 51(25.29) 26(12.38) Working Capital (Current Liabilities) 58(27.62) 42(20.00) 61(29.05) 49(23.33) Improved Neutrals 96(45.71) 23(10.95) 40(19.05) 40(19.05) 63(30.00) 82(39.05) 30(15.29) 75(35.71) 44(20.95) .959 Total Sum 577 534 592 529 574 466 504 Mean 2.75 2.54 2.82 2.52 2.73 2.22 2.40 Rank 2 3 1 2 1 4 3

Creditors Bank 10 44(20.95) overdraft Outstanding 11 49(23.33) expenses 12 Others 44(20.95) Cronbach's Alpha Source: Primary Data

Table 1, it has been inferred that on an average 2.73 sample SSI entrepreneurs have opined that their investment in machinery & equipment have improved after registering their units in DIC; followed by 2.59 average respondents have opined that they have invested more in furniture after joining DIC. An average score of 2.52 sample SSI entrepreneurs have stated that their investment in Land & buildings have increased after joining DIC and 2.30 on average have investment more in other form of fixed assets. Changes in working in assets are recorded as improvement in debtors (As per opinion a 2.82 on an average score on Likerts three point scale) lending, maintaining high cash liquidity positions (2.75 mean score) and stock hold status (2.54mean score). Changes in working in liabilities are recorded as enjoying bank overdraft facilities (2.73mean score), credit owing capability (2.52 mean score), other liabilities like short term liability owing and repayment capacity (2.40 mean score) and outstanding expenses repayment capacity (2.22 mean score). Reliability value of the opinion expressed by the sample SSIs entrepreneurs about the improvement in fixed and working capital position is measured as .959. Table 2: SSI Entrepreneurs Opinion on Business Growth in Terms of Raw Material Procurement Destinations Significantly Improved 1. Local 154(73.33) 2. Outside the District 154(73.33 ) 3. Outside the State 156(74.29) 5. Through Import 146(69.52) 5. Government Quota 150(71.43) 6. Others 140(66.67) Cronbach's Alpha Source: Primary Data Sl. No Sources Improved 52(24.76) 37(17.62) 44(20.95) 44(20.95) 51(24.29) 40(19.05) No Change 4(1.90) 19(9.05) 10(4.76) 20(9.52) 9(4.29) 30(14.29) Total Sum 570 555 566 546 561 530 .963 Mean 2.71 2.64 2.70 2.60 2.67 2.52

From Table 2 it has been inferred that the SSI entrepreneurs raw material procurement sources have significantly improved after registering in DIC. With the assistance received from the DIC in the form of entrepreneurial motivation, training and counseling advices. The comparative analysis of SSIs units performances before and after joining DIC depicts that on an average 2.71 entrepreneurs have opined that their local sourcing capability of raw materials have significantly improved after registering in DIC, followed by 2.70 sample SSIs entrepreneurs have said that they have extended the raw material sourcing ability in outside the states. On a mean score 2.67 sample SSI entrepreneurs have started procuring raw material through government agencies under the reserved quota system. On an average 2.64 SSIs units have expanded their suppliers domain in the other districts, 2.60 SME on an average score have said that their import capability have increased after joining DIC and 2.52

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respondents raw material sourcing practices through others have significantly improved after availing DICs assistance.Reliability value of the opinion expressed by the sample SSIs entrepreneurs about the improvement in raw material procuring destinations is measured as .963. The measure of correlation between the variables is proved to be reliable and valid. Table 3: SSI Entrepreneurs Opinion on Business Growth in Terms of Raw Material Procurement Sources Significantly Improved 1. Retailer 165(78.57) 2. Wholesaler 174(82.26) 3. Producer 167(79.52) 4. Government agency 178(84.76) 5. Other 157(74.76) Cronbach's Alpha Source: Primary Data Sl. No Sources Improved 42(20.00) 32(15.24) 34(16.19) 28(13.33) 52(24.76) No Change 3(1.43) 4(1.90) 9(4.29) 4(1.90) 1(0.48) Total Sum 582 590 578 594 576 .945 Mean 2.77 2.81 2.75 2.83 2.74

From the above Table: 3 it has been inferred that on an average 2.83 SMEs on a Likerts weighted scale of three, have opined that they have started procuring raw material from government based agencies followed by with 2.81 mean value of Sample SMEs procurement of raw material from wholesalers have significantly improved after joining DIC. On the contrary still on a mean value 2.77 of the SMEs procurement bases are vested with the retailers. On an average score of 2.75 and 2.74 a batch of smart SMEs have significantly shifted their supplier base to the direct/ original manufacturers/producers of basic raw material and other form of sources like import market etc. Reliability value of the opinion expressed by the sample SSIs entrepreneurs about the improvement in raw material procuring sources is measured as .945. The measure of correlation between the variables is proved to be reliable and valid. Table 4: SSI Entrepreneurs Opinion on Business Growth in Term of Employability and Man-Day Worked Significantly Total Improved No Change Improved Sum Number of Workers Employed 1. Male 156(74.29) 34(16.19) 20(9.52) 556 2. Female 140(66.67) 50(23.81) 20(9.52) 540 Number of Mandays Generated 1. Male 125(59.52) 81(38.57) 4(1.90) 541 2. Female 135(64.29) 68(32.38) 7(3.33) 548 Cronbach's Alpha .901 Source: Primary Data Sl. No Sources Mean 2.65 2.57 2.58 2.61

From the Table 4 it has been inferred that the number of workers and man-day employment creation of SMEs in Thoothukudi district has significantly improved after registering their units under the DIC. On a proportionate percentage the SMEs have been able to create employment to 88.33 per cent male and 85.67 per cent of female employees after joining DIC (i.e., 2.65 and 2.57 on average), which was recorded as 61.21 per cent male and 58.26 females before registering of the same units under DIC. Similarly the SSI units able create employment of 86 (for male workers) and 87 per cent (for female workers) man-day in a year (i.e., 2.58 and 2.61on average). Reliability value of the opinion expressed by the sample SSIs entrepreneurs about the business growth experienced in term of labour employment and man-day work provided is measured as .901. The measure of correlation between the variables is proved to be reliable and valid.

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Table 5 : SSI Entrepreneurs Opinion on Business Growth in Terms of Capacity Utilization Sl. No 1. 2. Sources Significantly Improved 165(78.57) 162(77.14) Improved 37(17.62) 42(20.00) 31(14.76) No Change 8(3.81) 6(2.86) 6(2.86) Total Sum 577 576 587 .979 Mean 2.75 2.74 2.80

Up to 50% 50-75% Above 3. 173(82.38) 75% Cronbach's Alpha Source: Primary Data

From the Table 5 it has been inferred that the installed utilization capacity of the 2.80 SMEs on an average range of three has significantly improved above 75 per cent after joining DIC, which remained between 50-75 per cent before joining DIC. Similarly the 2.75 SMEs on an average score have improved their installed capacity utilization feasibility upto 50 per cent and 2.74 MEs on an average score have improved their installed capacity utilization feasibility between 50-75 per cent. Reliability value of the opinion expressed by the sample SSIs entrepreneurs about the business growth experienced in terms of installed capacity utilization is measured as .979. The measure of correlation between the variables is proved to be reliable and valid. Table: 6 : SSI Entrepreneurs Opinion on Business Growth in Terms of Annual Consumption of R/M Sl. No 1. 2. 3. 4. Value Before DIC Registration 34(16.40) 76(36.41) 50(23.81) 49(23.38) 210(100) After DIC Percentage Registration Changes 0(0.00) 69 (32.81) -3.33 64 (30.45) 6.67 77(36.75) 13.33 210(100) .987

Below Rs. 10,000 Rs. 10,001-Rs. 20,000 Rs. 20,001-Rs. 30,000 Above Rs. 30,000 Total Cronbach's Alpha Source: Primary Data

Table 6 illustrates that the raw material procurement cost of SMES before getting DICs assistance and after DICs assistance. It has been observed that 52.81 per cent of the entrepreneurs have been consuming below Rs. 10, 000 worth of raw material yearly. After entrepreneurs registration in DIC the raw material buying capacity of sample SMEs have significantly improved. It could be rightly stated that those 36.41 per cent SMEs who were procuring raw material worth of Rs.10,001Rs.20,000 before registering under DIC had reduced to 32.81 per cent. On the contrary out of 210 SMEs surveyed 23.81 per cent of MSEMs had been spending between Rs.20,001-Rs.30,000 on their raw material procurement before joining DIC, the percentage of SMEs under this category rose by 6.64 per cent and recorded at 30.45 per cent after the SMEs registration in DIC. Similarly the ranges above Rs. 30,000 raw material consumption cost of SMEs rose from 23.38 per cent (before registration in DIC) to 36.75 per cent (after registration in DIC). Reliability value of the opinion expressed by the sample SSIs entrepreneurs about the business growth experienced in terms yearly of raw material consumption expenses is measured as .987. The measure of correlation between the variables is proved to reliable and valid. Table 7 : SSI Entrepreneurs Opinion on Business Growth in Terms of Expenses Significantly Improved Labour Cost 108(51.43) Power Cost 119(56.67) Other Cost 101(48.10) Cronbach's Alpha Source: Primary Data Expenses Sl. No 1. 2. 3. Improved 83(39.52) 55(26.19) 62(29.52) No Change 19(9.05) 36(17.14) 47(22.28) Total Sum 509 503 474 .892 Mean in % 80.67 80.00 75.33

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From the above table it has been inferred that the 80.67 SMEs on an average score of three have opined that their labour cost has significantly decreased after joining DIC, followed by 80 per cent SMEs have said their power cost have decreased after availing DICs assistance and 75.33 per cent have said that the incurring other operation expenses have reduced to a considerable rate after availing DICs assistance. Reliability value of the opinion expressed by the sample SSIs entrepreneurs about the business growth experienced in terms of fixed and variable expenses are measured as .892. The measure of correlation between the variables is proved to be reliable and valid. Table 8 : SSI Entrepreneurs Opinion on Business Growth in Annual Sales Significantly Improved Local 164(78.10) Outside the district 167(79.52) Outside the state 154(73.33) Exports 154(73.33) Cronbach's Alpha Source: Primary Data Sources Sl. No 1. 2. 3. 4. Improved 39(18.57) 39(18.57) 52(24.76) 37(17.62) No Change 7(3.33) 4(1.90) 4(1.90) 19(9.05) Total Sum 577 583 570 555 .872 Mean in % 91.67 92.67 90.33 88.00

Table 8 inferred that out of 210 entrepreneurs surveyed 92.67 per cent have said that their sales in the outside district market have significantly improved after availing DICs marketing assistances. Followed by 91.67 per cent have said that their sales in the local market and 90.33 per cent SMEs have said that their sales in the other states have significantly increased after joining DIC. Reliability value of the opinion expressed by the sample SSIs entrepreneurs about the business growth experienced in terms of annual sale is measured as .872. The measure of correlation between the variables is proved to be reliable and valid. Table 9 : SSI Entrepreneurs Opinion on Business Growth in Annual Profit/Loss Significantly Improved Below Rs. 10,000 146(69.52) Rs. 10,001-Rs. 20,000 150(71.43) Rs. 20,001-Rs. 30,000 170(80.95) Above 30,000 169(80.48) Cronbach's Alpha Source: Primary Data Sources Sl. No 1. 2. 3. 4. Improved 44(20.95) 51(24.29) 33(15.71) 37(17.62) No Change 20(9.52) 9(4.29) 7(3.33) 4(1.90) Total Sum 546 561 583 585 .845 Mean 2.60 2.67 2.78 2.79

Table:9 inferred that on an average 2.79 of sample respondents have opined that their yearly profit margin have raised above Rs.30000. Followed by 2.78 SMEs on an average have opined that their profit margin has raisen between Rs.20,001-Rs. 30,000 after joining DIC as a member, 2.67 on average score have stated that their profit margin has raisen between Rs.10,001-Rs. 20,000 after joining DIC and on mean value of 2.60 SMEs have commented that their profit remained below Rs.10000 after joining DIC. Reliability value of the opinion expressed by the sample SSIs entrepreneurs about the business growth experienced in terms of annual profit earning is measured as .845. The measure of correlation between the variables is proved to be reliable and valid. After drawing a detailed analysis on the performances of SMEs before and after registration in DIC, its statistical viability is measured with the support of Paired t test. Ho: The business performance of SSI entrepreneurs has significantly improved after registering in DIC

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M.Sekar, M.Shanmugasundram & M.Ganasen

Table 10: Result of Measures of Dispersion and Correlation SSI Entrepreneurs Opinion on Business Growth before and after Registration in DIC Variables Working capital Sources of raw-materials Procurement Number of workers employed Number of manday generated Capacity utilization Raw material cost Labour cost Power cost Other cost Annual sales Annual profit/loss Pair 1 Pair 2 Pair 1 Pair 2 Pair 1 Pair 2 Pair 1 Pair 2 Pair 1 Pair 2 Pair 1 Pair 2 Pair 1 Pair 2 Pair 1 Pair 2 Pair 1 Pair 2 Pair 1 Pair 2 Pair 1 Pair 2 Mean 2.553 2.411 158.670 51.333 1.509 1.423 1.390 1.500 1.861 2.238 2.214 2.004 1.904 2.233 2.371 2.057 2.500 2.271 2.347 2.519 2.390 2.751 N 12 12 6 6 3 3 3 3 3 3 4 4 4 4 4 4 4 4 4 4 4 4 SD 0.184 0.199 12.388 13.388 0.604 0.532 0.553 0.564 0.827 0.764 1.118 1.042 0.963 1.139 0.985 1.126 1.103 1.001 1.189 1.112 1.071 1.018 SE 0.053 0.057 5.057 5.057 0.417 0.036 0.038 0.377 0.057 0.052 0.077 0.719 0.665 0.078 0.068 0.077 0.076 0.069 0.082 0.770 0.073 0.702 Correlation .119 .112 .886 .807 .817 .931 .909 .894 .925 .948 .894

Level of significance: 5 per cent Note: Pair 1: Before Joining DIC & Pair 2: After Joining DIC Table 11: Result of Paired t Test SSI Entrepreneurs Opinion on Business Growth before and after Registration in DIC Mean Variables Pairs SD SE t DF Sig Differnces Working capital Before DIC assistance and 0.141 0.255 0.073 1.924 11 .041 After DIC assistance Sources of raw-materials Before DIC assistance and 107.330 25.776 10.114 10.611 5 .000 Procurement After DIC assistance Number of workers Before DIC assistance and 0.857 0.280 0.019 4.426 2 .000 employed After DIC assistance Number of mandays Before DIC assistance and 0.109 0.342 0.023 4.637 2 .000 generated After DIC assistance Before DIC assistance and Capacity utilization 0.376 0.485 0.033 11.227 2 .000 After DIC assistance Before DIC assistance and Raw material cost 0.209 0.407 0.028 7.443 3 .000 After DIC assistance Before DIC assistance and Labour cost 0.328 0.480 0.331 9.902 3 .000 After DIC assistance Before DIC assistance and Power cost 0.314 0.504 0.034 9.022 3 .000 After DIC assistance Before DIC assistance and Other cost 0.228 0.420 0.029 7.869 3 .000 After DIC assistance Before DIC assistance and Annual sales 0.171 0.377 0.260 6.576 3 .000 After DIC assistance Before DIC assistance and Annual profit/loss 0.366 0.483 0.033 11.000 3 .000 After DIC assistance Level of significance: 5 per cent The calculated significance value is lesser than the t value. Therefore the hypothesis is accepted. The business performance of SSI entrepreneurs has significantly improved after registering in DIC: in term of working and fixed assets

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accumulation, raw material procurement practices and consumption values, incurring of operation expenses, annual sales and profit.

RESULTS
From the elaborate data analysis it has been observed that business performances of sample SMEs have significantly improved after approaching DIC for various kinds of assistances and their registration in DIC as a member in term of: working capital, Sources of raw-materials Procurement, Number of workers employed, Number of man-dayswork generated, installed Capacity utilization, Raw material, Labour, power and other expenses incurred annual sales and profit/loss incurred. Reliability value of the opinion expressed by the sample SSIs entrepreneurs about the improvement in business performances are proved to be reliable and valid. The result of pairedt test also confirms the statement given as conclusion in this sub-section that the business performance of SSI entrepreneurs has significantly improved after registering in DIC.

DISCUSSIONS
DIC officials must realise the fact that at a macro level there is need for a strategy for a horizontal geographical spread of the various outreach programmes for balanced growth of MSMEs in Thoothukudi district. Policy makers must realise the fact that there is a need to emphasize the inclusive nature of any strategy to target entrepreneurs and other weaker sections of the society. It is only by such horizontal and vertical inclusiveness that DIC can attain the objectives of this mission with equity. The potential strategies would mainly rest on five pillars, as it were, concurrently listed in the order of priority: Skill development of entrepreneurs through proper training, Providing Timely Markets Assistance, Technology Related Information and Assistance for Technology Adhering and Development, Assistance for Infrastructure Development and Flexibility in Credit provisions.

CONCLUSIONS
The author concludes the study by stating that the SMEs development strategy should be coordinated and monitored at the central level through a lean, but high level institution supports at grass root level and progress should be reviewed jointly by public and private sector. Since MSMEs in India are considered as growth Engine of Economy. Industrial policy makers in India should thus promote the growth of SMEs in order to avoid monopolistic and oligopolistic markets with the right kind of policies and regulatory frameworks. The government based nodal agencies like DIC should provide support services to SMEs/MSMEs to improve their competitiveness in the area like: information, consulting, training, accounting, legal, advertising, and marketing, courier services, technical and technology services, including testing for standards and certification requirements abroad, product upgrading, etc.

REFERENCES
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