A STUDY ONANTECEDENTS AND CONSEQUENCES OF THE USAGE OF INFORMATION SYSTEMON RECITAL IN THE SMALL MEDIUM ENTERPRISES (SMEs) OF SELECTED DISTRICTS, TAMIL NADU

Small and medium-size enterprises (SMEs) are main factors of all economies and are commonly studied to be adaptive, flexible organizations. SMEs play an essential part in the country’s overall production structures and they are core to the economic development of improving countries. The formal SMEs contributions are 50% of total employment and 33% of the national income of emerging economies. While containing informal SMEs the proportion will be improved. Finance extension is the major constraint to SME development, without that many SMEs are declined. SME formation is considered to be important at present days. They include in job innovation in this current day economy. The Small and Medium Enterprises (SMEs) faces different problems, which may not be faced by large firms, due to their economy of scale. Although lagging behind their higher counterparts, SMEs are inception to provide in information systems. Most SMEs has low-levels of internal information system (IS) expertise, although this difference in industry sector. One of such problems is the application of information systems for optimizing and efficiently running their business processes. The main reason is scarcity of financial resources in setting up and running information systems. The cost of running information systems, their upgrades, and maintenance require sizable resources (money and technological manpower) in the long run in SMEs. It will help them in networking and forming peer groups for better bargaining from large companies. IS can play the major part to help SMEs to achieve the connectivity with markets and in turn make SMEs more responsive.