Development of the Indian Textile Industry: Complications of Small to Medium Businesses - Literature review Example

Development of the Indian Textile Industry: Complications of Small to Medium Businesses 3/24 Introduction The growth and development that is a part of small and medium enterprises in the Indian Textile Industry is one that has begun to alter with globalization. The different business concepts that are applied to this include an alteration in how business is developed in other regions of the world. More importantly, there are changes that are happening specifically within India as a developing country. The imports and exports that have been developed within this have created a different set of growth with finances as well as with the way in which business is being developed. Variable 1 – Small Manufacturing Enterprises in Developing Countries Small manufacturing enterprises in developing countries, according to the first article, are being forced into change in various regions. This is occurring because of complications and the patterns of efficiency in developing countries. Small manufacturing enterprises have begun to change because of the policies as well as the way in which the different companies are established. This has led to dependence on outside resources, such as the World Bank, which is leading to several disadvantages for smaller enterprises. The article notes that the current conditions, set up of the businesses and the policies from external resources have altered the way in which firms are developing, leading to more labor intensive counter parts (Little, 1987, 203-235). The second article notes that, while there are more opportunities with developing countries because of globalization, there are still limitations. The author notes that the ability for a small company to succeed in the current market is dependent on modernization and skilled job creation. The growth into broader markets causes limitations with small firms, specifically because there are institutional obstacles from governmental policies, trade policies, and instability of various procedures and a questioning of whether the trade should be opened in specific countries (Tybout, 2000). The examination of both articles shows that there are several hindrances for developing countries. The limitations that smaller companies are faced with come because of the globalization issues, which are now reliant on policies and procedures. The limitations are further set from competitors and large manufacturing companies. For this to be more effective in the argument, the author’s would need to show the alternative methods that are helping smaller businesses to survive as well as providing a well – rounded examination of both the strengths and weaknesses of changing businesses and the economy. Variable 2 - The Case of Indian Enterprises The expansion of business in India is one that has allowed for the textile industry and for various manufacturing enterprises to have new challenges as well as opportunities. In the first article, it is seen that the opportunities in India are dependent on the ability to expand into a modern setting. The development of R&D, the expenditures that are available and the imports of technology are the main factors for the development in India. The textiles that are available and the ability to move into specific areas of competition will only develop when these three factors are a part of the organization, making it difficult to expand globally (Katrak, 2002). The second article that is used and which analyzes different Indian countries is based on the development of Indian enterprises. The article notes that the country as a developing world is one that has several contentions because of the limited resources that are a part of the region. The development of technology, firm size and exports is beginning to change the way that businesses are functioning. Small to medium sized enterprises are known to have limited resources, specifically within technology, which is hindering the amount of textiles that can be used and manufactured. The small to medium sized enterprises; however, are unable to move into the correct positioning because of government and export obligations with the manufactured exports (Kumar, Siddharathan, 1994). Both of the articles are able to point to the main problems with Indian enterprises, specifically with manufacturing and textiles. It is noted that India is working toward development and competition on a larger basis with exports and imports. However, both authors state that the hindrance each is facing is based on a limitation of resources that are available. The manufacturing is then unable to move into specific positions and is not able to create the responses desired. The difference between both articles is based on the limited resources available, one which focuses on R&D and the other which shows obligations and policies. The limitations of both show some of the main problems with business development in the region. Comparison of Articles All articles are able to focus on the underlying problems with Indian exports and the textile industry, specifically while relaying the concepts of a developing country. Each notes the complications of developing countries and the manufacturing. More importantly, all of the articles show how the firm size is limiting the ability to produce and compete against larger corporations and the surrounding environment. This is limited not only with the basic production, but also because of reliance on export policies, governmental standards and the external resources that are provided to the country. The differences that are noted within these articles are based on the analysis and understanding of the situation in India as well as for small and medium enterprises. The first two articles differ with the understanding of developing resources that are available, while the second two articles focus on the efficiency of production in India based on both the resources and the policies available. It is noted that the resources and limitations of the developing country are one of the main blocks in being able to produce larger amounts of textiles and is also leading to the inability to compete within other regions with different focuses in each article on development. While the articles show a strong critique and understanding of the situation in India, there are some weaknesses that are not approached. Specifically, none of the articles recognize the market demand that is related to the textile industry or within small to medium enterprises. There is not an understanding on how the smaller businesses are continuing to operate, but only a case study of the limitations. The market demand would create a deeper understanding of how the market size and export industry is affecting smaller businesses in the region. More specifically, the articles do not base a stronger understanding of the marketing competition that is surrounding the region. None focus on the way in which textiles are being developed in the region and how the competition is able to work within this. This would provide a well – rounded solution for the understanding of developing countries. References 1. Katrak, Homi. 1989. Imported Technologies and R&D in a Newly Industralizing Country: The Experience of Indian Enterprises. Journal of Development Economics (31), (1). 2. Kumar, Nagesh, NS Siddharthan. 1994. Technology, Firm Size and Export Behavior in Developing Countries: The Case of Indian Enterprises. Journal of Development Studies (31), (2). 3. Little, IMD. 1987. Small Manufacturing Enterprises in Developing Countries. International Bank for Reconstruction and Development (1), (2). 4. Tybout, James. 2000. Manufacturing Firms in Developing Countries: How Well Do They Do and Why? Journal of Economic Literature (38), (1). Read More