To move ahead, an integrated knowledge network and information super-highway for SMEs that links all relevant national and international information sources become basic necessity. To enable SMEs to keep pace and alignment with the dynamism of knowledge-based economy, promotional, developmental and financing institutions, industry associations, chamber of commerce etc. have to commit resources and assistance to make the KM strategy tangible and economically viable.

The gaps in knowledge management are affecting investment in the sector. Low capital accumulation affects employment generation, long-term competitiveness, production capability and SMEs' access and integration into globalised supply chains. These require substantial investment. The world over it is the SMEs which play a major role in innovation, revitalisation of economy and creation of new jobs, but propelling SME-growth in India requires a sound Knowledge Management strategy for the sector.

About the Author:

The author is DGM of SIDBI; having years of experience in the field of SMEs in funding and working with them.

Note: The views expressed in the article are personal. (Published in Financial Express March 3, 2006)