Global Insights

Regional Determinants of New SME Formation in India

TypeConference presentation
EventIssues in Regional Development
Organized byUniversity of Burdwan
LocationBurdwan, West Bengal, India
DateSeptember 15–16, 2015

A talk delivered at the International Conference on Issues in Regional Development, University of Burdwan (September 15–16, 2015).

In short: Why new small and medium enterprises spring up far more readily in some Indian states than others — and which regional conditions explain where entrepreneurship takes root.

About the talk

This presentation examined the regional determinants of new SME formation across Indian states — that is, what local conditions encourage new small and medium enterprises to be founded in one region rather than another. By looking at where new SMEs cluster, the talk drew out the factors that make some states more fertile ground for entrepreneurship and small-firm growth.

What the talk covered

  • A strongly uneven geography — new SME formation concentrated in particular regions of the country, with the southern, western, and northern states accounting for the large majority of new SMEs.
  • Regional conditions drive entry — local industrial base, infrastructure, access to finance, and agglomeration shaped where new firms were born.
  • Persistent regional gaps — some states consistently lagged in generating new enterprises, pointing to structural rather than temporary disadvantages.
  • Targeted policy implications — encouraging entrepreneurship in lagging regions requires addressing their specific local constraints.

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