KOCHI: Small firms are showing impressive growth and in the process creating employment opportunities despite facing various challenges Union Minister of Micro, Small and Medium Enterprises Mahabir Prasad said on Tuesday.

Greater integration with world market has posed numerous challenges and threats for the Small medium enterprises (SME) sector, which are of far greater magnitude than those faced by the large business enterprises, he said.

'In the face of competition, small firms are showing impressive growth and in the process creating value and additional employment opportunities', he said.

Inaugurating the valedictory function of the 5-day India International Coir Fair 2007 here, Prasad said rapid globalisation and liberalisation have created numerous opportunities for growth.

The SME growth has been propelled by fresh investments in basic industries, he said, adding the contribution to exports has been significant in the wake of increased manufacturing activity and the increasing prominence of service sector companies in this space.

In order to take a holistic look at the credit and lending pattern and suggest ways and means of streamlining procedures, the Centre had created the National Commission for Enterprises in the unorganised sector (NCEUS) under the Chairmanship of Arjun Sengupta, he said.

The Commission has submitted a report on 'financing of enterprises in the unorganised sector' to the Prime Minister Manmohan Singh detailing the need for re-orienting priorities to help the small scale sector, he said.

'This is being examined. The suggestions when implemented will resolve a number of present day problems of the micro and small industry'.