A report was made on small and medium enterprises (SMEs) by the Franchise India which was named as ‘Top 100 Cities for Doing Small Business in India’. It was reported that Ahmedabad was the most favorite destination for small business in India. Following it, the SMES were popular in Bangalore and Mumbai.
About 8-9 percent of the country’s GDP was contributed by the SMEs which produced about 8,000 products. The sector also provided employment for more than 40 million people. A contribution of 45 percent and 40 percent by the SMEs was estimated for industrial output and exports of the country respectively.
About 100 Indian cities were identified by the report. These were able to increase the growth of small businesses and were considered as ideal locations for starting new small business ventures. There is more exposure to the innovation and cosmopolitan interface in the metropolitan cities. This is one of the reasons that entrepreneurship and as a result small businesses are rich in metropolitan areas.
The decreasing order of cities having more small businesses included Ahmedabad, Bangalore, Mumbai, Hyderabad, and Delhi. The approach for policy making in small businesses in Delhi is lesser and hence had lesser number of small businesses. Following these cities were Surat and Faridabad.
The SME sector was weak in other states due to the lack of regulatory and administrative actions in the past few years. There had been a lack of correlation between the vision of policymakers and long-term sustainability of innovation. Hence, the growth of small businesses was lesser in those states. Certain areas such as Jhansi, Dharbang and Dhanbad had to improve in planning for the future commercial landscape.
Certain planning and policy making should be started in areas including Anantapur, Bhatinda, Bhiwandi, Muzaffarpur, and Nellore which have potential factors for rise of small businesses.