“Study on Government Policies and Regulation Factors which are Affecting the Performance of SME’s (Manufacturing)”

Abstract

The small and the medium enterprises (SME's) sector play a pivotal role in the overall economy of the country, besides contributing significantly towards the employment generation and exports. To compete in the global market, implementing cutting edges and state of the art technologies are essential. SME's located in tier 1 cities are having better access to such technologies when compared to SME's of tier 2 cities like Hubli- Dharwar, Belgaum (Karnataka, India). This work is carried out to identify thefactor influencing performance and to create interest amongst the entrepreneurs. This study attempted to identify the government factors such as frequent change in tax policies, Regulatory issues, Rules and Procedures and their impact on performance of small and medium manufacturing enterprises (SME's) in Hubli-Dharwar region. A well-structured questionnaire was used to capture the relevant data needed for analysis and identification of factors. Statistical package for the social sciences SPSS was used to analyse the dataset and test the various hypotheses. It is for the concerned stakeholders to focus on this factor on priority basis to enable SME's to reach their full potential.