At a time when business environment is marked by stiff competition, small and medium enterprises should adopt innovative approach and make use of technology to compete successfully in the global market, S. Sivagnanam, Director, Micro Small and Medium Enterprises (MSME) Development Institute, Chennai, said on Friday.

Entrepreneurs running small and medium units should be strong in financial management and know the ways of managing funds as this would help them in tackling challenges and operating their units successfully, Mr. Sivagnanam said at a programme organised by the Confederation of Indian Industry (CII), Tiruchi zone, on ‘Enhancing MSME in central districts of Tamil Nadu’ here.

Managing the enterprise financially well is important than making beautiful components, Mr. Sivagnanam pointed out. Progressive entrepreneurs should be information seekers, and have an enterprise drive within them and a business vision to compete successfully in a highly competitive atmosphere.

The MSME has embarked on the task of developing software to help entrepreneurs scouting for skilled manpower and to provide employment to the unemployed youth.

Tamil Nadu, he said, has a lot of MSMEs, but many are closing down owing to some problem or the other. The central region in and around Tiruchi is emerging as an industrial hub with announcements of various industry-related projects, he said.

Rani Muralidharan, vice chairperson, CII, Tiruchi zone, said the MSME sector provided employment to vast sections of population.

A majority of the MSME units fall under the manufacturing sector. There are areas such as marketing where MSME units face difficulties, she said. The chairman, CII, Tiruchi zone, T.V. Murali, said MSMEs are the backbone of Indian economy.

The programme featured sessions on different areas, including IT in MSME, skill development, MSME banking, equity participation, and facilitating MSME growth in India.