A recent study has observed that high rates of interest on loans, low levels of R&D, limited access to technology and product innovations and vagaries of the inspector raj are the major hurdles faced by the SMEs in their growth story. Moreover the procedural issues faced in raising loans include lot of paperwork, collateral security and high processing fees and prepayment charges. SMEs have difficulty adopting expensive quality management systems, or certification procedures that sometimes have to be repeated several times. The other barriers are lack of information, capability to build up an international market position, insufficient management skills, technical trade restrictions including standardization, quality requirements, conformity assessment, packaging and labelling, ecology requirements, bureaucratic procedures, marketing and distribution problems, lack of risk assurance and in the more distant countries, high transportation costs and communication problems.

To know more about the Study on SMEs, visit the link below

http://www.tradeindia.com/dyn/gdh/alliance/assocham/survey/studyonsme.html

Tradeindia Editor

(Tradeindia Expert)

Tradeindia.com

Tradeindia.com
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