Overcoming Challenge of Sales Growth
What is the biggest challenge SMEs face in India ? SMEs in India are fraught with challenges - from credit, cash flow, capacity utilization to trained manpower and technology. However, what's the biggest one ? A recent survey by Mumbai based A&A Business Consulting has brought out interesting facts. Contrary to popular belief - largest chunk of 47 percent surveyed SMEs cited sales growth as main problem they are facing rather than working capital or credit (1). Many SMEs start on a profitable idea, grow well during initial days but growth tapers down with time. The result is very few SME success stories - most SMEs are stuck with very low sales growth - remaining small for ever. This typical Indian phenomenon has been recognized by experts long back and termed 'Missing Middle' - meaning there are few large firms, many tiny ones and nothing in between (2). Why Sales Growth Slows Down Most of India's micros and small enterprises can be found in 5000 industry ...