Dear Readers,

Yesterday, we
gave you the following topic for WAT – “With
so many mergers and acquisitions by big business houses in India, is there any
future for small scale enterprises in the country? Suggest ways to help out
small scale enterprises.” This had appeared in the IIM Indore entrance
in 2013. In this article, we will look at the correct approach for an essay on
this topic and will also cover some important points which may be used in this
essay.

Guidelines – How to Approach this Question

·
Like most of the WAT topics,
this is also an opinion-oriented question.

·
Keeping in mind the premise of
the question, which is the increasing number of mergers and acquisitions, you
have to explain its impact on small scale ventures.

·
Before making an outline, keep
in mind that there are two parts in this topic: (i) how acquisitions have
affected the possibilities for small scale organisations, and (ii) remedies to
improve the situation and attain balance.

·
For the first part of the
question, you have to analyse the given situation and support it with relevant
facts.

·
The second part is a test for
your creative thinking ability and managerial skills and thus, you should
present a well-planned solution.

What to Write in the Answer

Here are some
points which you can use in your answer:

· Introduction: You can start by underlining
the importance of small scale enterprises – how they have always been in the
picture, in the form of ration stores, etc. You may explain how bigger
companies came in much later and small scale ventures were the building blocks
of the industry.

· Main Body: Now, let us move to answering
the question. Ideally, you should say that there is still some scope for small
scale enterprises, but you can also present a counter-view if you have relevant
points.

·
Given the vast and diverse nature
of the Indian population, local businesses have ample possibilities to
flourish. Since India has innumerable cultures, local sensibilities become a
huge factor in growth of business.

·
Even though national and even
international firms have taken over the market, demands for locally made
products have not entirely diminished. There is a lot of competition and it is
getting tougher for these local enterprises to survive.

·
National merging of organisations
means that only a handful of firms are providing services across the country. While
the multiple branches have opened up employment opportunities in various
cities, they do not reach out to rural or semi-urban areas.

·
Local businesses not only
provide ways of sustenance to the regional population but also provides a boost
to the local economy, thereby inducing a domino effect and making a bigger
difference.

Part II

· How to Help Small Scale Businesses: This
is the section where you can be innovative and present the solutions that you
think would work the best. There is no right or wrong here; the panel wants to
test how you handle yourself in a particular situation. Some points:

·
Norms should be simplified for
starting a business so that more and more local industries can flourish. We can
take cue from China, where they have single window approvals. Presently in
India, there are a lot of barriers to cross for small businesses before
actually entering the market.

·
Taxation is a big factor and
therefore, if rules pertaining to taxes are made favourable, small scale
industries (SSI) can get a huge boost.

·
Private-Public Partnerships
make up a big parameter in promoting SSIs. For sustainable development of these
ventures, more of these collaborations should be encouraged.

· Conclusion: While there is a lot of
competition in the market from big companies, all is not lost for small scale
enterprises. Their contributions to the local economies cannot be neglected. Mergers
and acquisitions do not branch out that deeply into the rural areas of the
country, but improved norms are needed for small ventures to develop. If better
planning and infrastructure is provided, these small businesses can succeed greatly.

The next topic
is – “Viswanathan Anand is as good a
brand ambassador as Sachin Tendulkar.”

To access the whole series of our WAT articles, you can start here:

https://testing.pagalguy.com/articles/wat-practice-topic-1-answer-which-invention-would-you-have-l-385833…

In the comments section of this article, you can find the link to the next article and so on. 

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