subject: Smes Bringing In Sea Changes To Scale Up Performance [print this page] Big enterprises armed with superior technology, efficient manpower, huge capital and better marketing tools are generally successful in carving a niche for themselves. On the other hand, most SMEs face problems such as acute shortage of credit, inefficient workforce and dearth of R&D activities. However, if SMEs borrow ideas from large enterprises, popularly known as best practice benchmarking they can overcome most of these problems, thereby achieving growth.
Rakesh Singh, proprietor of Boom Buying Private Limited, a mid-sized manufacturer of leather garments in New Delhi, says, Since SMEs suffer from budget constraints, analysing and incorporating business practices of successful organisations will not only help them to save money but also optimise capability and bring in business efficiency in a short span of time.
Understanding working principles imperative
It is extremely important for SMEs to thoroughly understand the working principles of successful organisations and then analyse whether those principles are aligned to their business requirements. This is extremely important because blind incorporation of working principles may result in loss of capital for SMEs. One of the most common practices that SMEs are following now is consultation with middle level employees as well as top executives on a regular basis to discuss strategies to enhance business performance, which was almost non-existent earlier, says Kunal Mehta, proprietor of Kolorjet Chemical Private Limited, a mid-sized manufacturer of colours and dyes in Mumbai.
Currently, it is increasingly being noticed that many big companies have started assisting SMEs to conduct research to help the latter in gauging their business requirements in a better way. The research focuses on means to develop a successful model for running business as well as encourage employees to hone up their skill sets in order to scale up performance. If SMEs can implement the results of such researches in their business, they will not only flourish but also cater to customer requirements in a much better manner.
