Software SMEs contributed significantly to OFDI stock (47 per cent), whereas manufacturing OFDI by SMEs was small (table 6).

OFDI and enterprise competitiveness

One or more enterprises which already control at least one enterprise directly or indirectly acquire total or partial control of one or more enterprises

Case study on outward foreign direct investment by Singaporean firms

Enterprise competitiveness and development

Outward foreign direct investment by Indian small and medium sized enterprises

Data related to the impact of OFDI on firms' competitiveness are particularly lacking, especially for the SME sector.

Customers and coal trading enterprises in coal marketing areas shall have the right to buy coal directly from coal mining enterprises.

Indian SMEs are not far behind the larger enterprises in OFDI activities.

Nevertheless, many corporate responsibility initiatives currently came directly from industry.

The business hasn't been paying for the last six months.

OFDI and enterprise competitiveness 11

The OFDI motivations for SMEs are in general similar to those for larger firms. However, a few differences are notable.

While SMEs in the software sector are less export oriented in their OFDI activities, compared with larger ones, they are relatively more export oriented in the manufacturing sector.

OFDI by SMEs Emerging patterns

OFDI by software SMEs, similar to manufacturing SMEs, has been prominent since the 1990s, which coincided with the second wave of Indian OFDI (figure 4).

There are several reasons for the difference between SMEs' OFDI behaviour and that of large enterprises.

Evidence shows that, compared to FDI from large enterprises, FDI from SMEs is more likely to lead to multiplier effects through linkages to local industry (UNCTAD 1998).

Indian OFDI by SMEs is similar to that by Indian TNCs in that it originated from a broad spectrum of manufacturing industries.

Because of these disadvantages, SMEs are invariably small in quantity as compared with OFDI by larger enterprises.

Whether OFDI for an individual firm is largely beneficial depends upon firm specific strategies pursued.

OFDI policy regime and SMEs

joint venture of Roto Pumps Hydraulics (P) Ltd. with Sterling (Fluid equip) Ltd. of the United Kingdom to manufacture pumps in 1993.

(2) coal mining enterprises that are established in trans administrative regions of provinces, autonomous regions and municipalities directly under the Central Government.

OFDI policy regime and SMEs 11

OFDI from India has not been entirely led by larger enterprises.

Other Indian SMEs with OFDI activities include footwear, food, transport equipment and pump manufacturers.

They are entrepreneurs. Unclear told us they are always about four percent of the population, but 16 percent are imitators.

FDI from SMEs has the potential to increase the international competitiveness of the SME sector in both home and host countries.

A range of government policies influences the behaviour of firms directly or through the market, institutions, infrastructure and inter firm relations.

To describe the nature and trends of OFDI by indigenous Singaporean enterprises

Impact of OFDI on competitiveness of Singapore enterprises

Indian OFDI and SME competitiveness

Direct contacts between industry leaders would also facilitate partnerships and collaborative ventures

The Business of Business is More Than Business

Table 6. Top ten destinations of Indian OFDI by SMEs and large sized enterprises, as at 31 March 2001

With respect to the types of enterprises, one may distinguish between informal sector enterprises, essentially microenterprises, and enterprises in the formal sector, which include some microenterprises, SMEs and large firms.

County enterprise boards sought to increase women's involvement in entrepreneurship and management through role models and mentoring.

OFDI activities by Indian SMEs are conditional upon both government policy initiatives and firm specific endeavours.

Internationalization of Developing Country Enterprises

Impact of OFDI on competitiveness of Singaporean enterprises 14

Case study on outward foreign direct investment by Indian small and medium sized enterprises

Indian OFDI and SME competitiveness 12

14. National, regional and or local SME development strategies must take into account both the direct and indirect impacts of policy on SME development.

Its first objective was to examine how enterprise competitiveness in developing countries and economies in transition could be enhanced through internationalization, with a focus on outward foreign direct investment (OFDI), particularly by small and medium sized enterprises (SMEs).