YOGESH C. JOSHI, Sardar Patel University, India
Purpose: Micro Small and Medium Enterprises (MSMEs) are vital for contribution to Gross Domestic Product (GDP), employment, exports, balanced development and being nursery of entrepreneurs in India. During past years the production of MSMEs has grown at a higher rate compared to overall production of industry in India. Hence the relative importance of MSMEs for revival of growth in Indian economy is considerably high. In an increasingly globalised economy, it is therefore, imperative that MSMEs focus on sustainable business practices, leading to their sustainable development.
Design/methodology/approach: The present paper is an attempt to study sustainability issues for example, environmental and energy efficiency concerns among MSMEs in selected industrial cluster of Gujarat in India. The study will be done in Vitthal Udyognagar, Anand, industrial cluster of Gujarat Industrial Development Corporation (GIDC). It constitutes of more than 1000 firms, constituting of 85% light engineering and fabrication firms, 5% firms are chemical and paints, and other firms. The paper will study how these MSMEs are affected by opening of the economy and are changing themselves to face competition. Thus this paper will focus on the way MSMEs are adapting to changing economic environment and contributing to sustainable economic development.
Conclusions: The study of MSMEs in industrial area of Vitthal Udyognagar reveals that most of the firms are slow in adopting sustainable business practices in the area. Only in a limited manner they are adopting sustainable related measures. However there are only a few firms which have started initiating steps related to sustainability in the industrial area under study. Thus, it can be concluded that MSMEs are adopting Sustainability issues in an impressive manner but only by few selective firms only. Hence they are yet to adopt all variety of measures and facets of sustainability in selected areas. Although it is evident that globalisation is affecting MSMEs, but many of them are doing reasonably well in managing their growth and profitability.
Keywords: Micro Small and Medium Enterprises; MSMEs; sustainable development; industrial development in Gujarat