Journal
| Title | Chaos Theory Approach as Remedial Strategy for Financial Crisis in Indian SMEs | |
| Author's Name | Maral Ejmalian and Asif Ali Syed | |
| ISSN | ISSN 0974-7281 | |
| Page(s) | 107-120 | |
| Volume No. | 7 | |
| Issue Month | January 2015 | |
| Keywords | Chaos Theory, Financial Crisis, Indian SMEs, Survival Strategies. | |
| Abstract | SMEs are considered as engines of economic growth and social development. The very first advantage of this sector is potential for employment generation at low capital cost. The labor intensity of this sector is much higher than the large enterprises and their contribution to poverty reduction, wealth creation, income distribution and reduction in income disparities is not negligible. The sustainability of the gross domestic product (GDP), export earnings and development opportunities is dependent on small and medium enterprises as they lead to reduction of the incidences of poverty and increase in employment in the country. The recession generated the financial crisis in USA in September, 2008 and had negative impacts on the world economy. The crisis emerged in India while the Indian economy was suffering from depreciation of currency. The impacts of this crisis were contraction in trade; net outflow of foreign capital; fall in stock market; large reduction in foreign reserves; slowdown in domestic demand; slowdown in exports; sudden fall in growth rate and rise in unemployment; deceleration of GDP; rising inflation; rise in the price of food articles; fall in exports, outsourcing services and service sector; job cuts, lay off and significant upheavals in labor markets. This study covers some strategies based on Chaos Theory that SMEs used to overcome the crisis. |
<< Go Back to the List
