ABSTRACT
Preliminary findings indicate that all the three indicators of local markets, namely, the size, growth and per capita income of the host states favourably affect SME export activities. This implies that for encouraging SME exports smaller and low-income states have to make greater efforts than that by larger states. If their SMEs are overwhelmingly local/regional market dependent, to start with low-income states could actively encourage their firms to achieve national market focus. It might be useful if these state governments extend assistance to their SME entrepreneurs to open distribution centres in other states and participate in fairs and exhibition there.
