It doesn’t help to be small in Indian industry with a majority of SMEs complaining that they are constantly being shouldered aside by their bigger competitors when it comes to marketing and having access to technology solutions, and they’re hoping Finance Minister Arun Jaitley can do something about it.
The Firstbiz-Greyhound Knowledge Group survey of small and medium enterprises in India found that 68 percent of all the respondents said they were constantly losing to larger competitors.
“This clearly implies the need for SMEs to participate in cartels and industry bodies that allow for scale in both marketing and supply chain,” the survey said.
A lack of availability of technological solutions for marketing, limited understanding of new age marketing strategies like content marketing and lack of awareness about existing government schemes to back SMEs are among the major problems faced.
The study also found that 89 percent of the 540 respondents are unaware about government initiatives like the Marketing Assistance and Technology Up-gradation Scheme for Micro Small and Medium Enterprises and the MSE Marketing Development Assistance (MDA) Scheme.
The difficulties faced by the tier-2 and -3 cities are manifold compared with those in the tier-1 cities. According to the survey, organizations from tier-3 cities find it more difficult to obtain credit owing to high interest rates and those from tier-2 and -3 cities find obtaining term loans without collaterals a major obstruction as compared to tier 1 cities.
Interestingly, 71 per cent of the companies were not aware of the government’s credit guarantee scheme for access to collateral free credit from banks. More importantly, of the 29 per cent respondents that were aware, 99 per cent said the scheme did not help them as it is difficult to access information on the scheme from banks.
“Small organizations hold high expectations that this budget will have a policy that encourages creation of an SME exchange – dedicated stock exchange for SMEs acting as a common financial organization for financial and equity trade,” the survey has found.
While only 89 percent mid-market organizations are expecting this, smaller organizations have higher expectations and have rated it at 94 percent, it said.
You can download the entire report here.
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