Concept Of Good Governance

Governance is the act of governing. It relates to decisions that define expectations, grant power, or verify performance. It consists of either a separate process or part of decision-making or leadership processes1. Governance involves policy making to implementation of these policies. It influences the achievement of the goals of governance. Goal achievements vary in quality depending on the cumulative and individual acts at various levels in the governance structure. These results depend on the efficiency of formulating and effectiveness of implementing the Governance process. The concept of governance is related to the processes of governing (regulating, decision-making, steering) by all types of actors (including but not confined to government).

Transformational Change: Transformational change is the process whereby positive development results are achieved and sustained over time by institutionalizing policies, programmes and projects within national strategies. It should be noted that this embodies the concept of institutionally sustained results – consistency of achievement over time. This is in order to exclude short-term, transitory impact3. National actors are by far the most impor¬tant factors in effecting transformational change. Indeed, such transformational change can by definition only be achieved by national actors since it will most likely depend on the political will of governments – national, regional and local – which have the power to legislate, develop policies and programmes, and to allo¬cate resources – financial and human – to imple-ment them. However, in order to be successful and sustainable, truly transformational change must also embrace civil society stakeholders, both in the commercial and the non-profit sec-tors, including community-based organizations. This underlines the importance of broad-based national ownership. For the same reasons stated above International partners are far less

Literature Review
5.1. Indian MSMEs
5.1.1. Contribution of Indian MSMEs MSMEs in India have contributed considerably to the Indian Economy through many dimensions and some of the critical contributions include (Prime minister’s Task force,2010)6
a. Sector nurtures entrepreneurship through individual creativity and innovation.
b. 8% share in India’s GDP
c. 40% in India’s total exports
d. Large employment generation of 73 million people in 31.1 million units SMEs rank second in fostering employment opportunities after agriculture.
e. Labour to capital ratio in MSMEs is much larger than in the large industries.
f. Overall growth in the MSME sector is much higher than large industries.
g. Geographic distribution of the MSMEs is also more even.
Therefore MSMEs play an important role and are critical to achieve for the national objectives of growth with equity and inclusion. Following Table-1 is extracted from annual report of Ministry of MSMEs for 2011-12 and these give a bird’s eye view of Indian MSME