SME sector is a very vital factor for the growth of a country’s economy. In case of India, its contribution to the country’s GDP is about 8 to 9 percent. Moreover, it contributes by employing more than four crore people. A report has been prepared by Ernst & Young (E&Y) and Franchise India, listing major cities for successful operation of small scale businesses.

In the research, it has been found that Ahmedabad tops the list as any Small scale business can flourish in the city. There is a good scope to excel in sectors such as pharmaceutical, textile machinery parts, leather footwear, health and wellness services, gems and jewellery. The state of Gujarat is very supportive for entrepreneurs and this is the reason why micro, small and medium enterprises (MSMEs) having been prospering in the State.

Next in the list is Bengaluru, ideal for B2B services. Hand tools, auto components and hosiery are the major flourishing sectors in addition to electrical goods and apparel manufacturing. Third in the list is Mumbai with an environment congenial for growing businesses like machine tools, B2B services and electronic goods.

The fourth and fifth contenders are Hyderabad and New Delhi. Hyderabad is best known for information technology-enabled services (ITeS), bulk drugs, offshore services, and leather tanning. New Delhi though holds the fifth position in the list but it is rated as the best city for sectors like rubber, auto components and food processing.

Chennai, Surat, Faridabad, Jaipur and Gurgaon are also among others cities that have a ranking in the list.