SME sector is considered as one of the most important segments for any nation. SMEs have fostered the Indian economy's competitiveness in an increasingly challenging global economic picture. The survey found that SMEs are more concerned with issues like staff shortages, a lack of orders, sales and government regulation.
Some of these hurdles comprise of inefficacy of SMEs to access continued development and success.
Lack of Finance: It has emerged as the most critical barrier for perfect capacity utilization and competing in the market. SMEs are not able to raise adequate funds from banks, especially for high risk projects. Insufficient basic infrastructure facilities like irregular power and water supply, bad road and railway connectivity etc are some of the factors that are hampering the growth of SMEs in India.
Lack of Technology: One of the crucial factors that prompts in the success or failure of enterprise is technology. The best use of technology no doubt enables enterprise in reducing cost of production, maintain consistency in quality, improve productivity and finally develop the competitiveness of the enterprise.
Lack of Planning: Another problem that is mainly faced by SME sector is the proper division of time, which is usually the outcome of improper planning and strategy. Moreover, if you are in debt then you have to be careful from your bankers and suppliers and off course your employees who will be on your nerves on the salary day.
Lack of Marketing Assistance: One of the chief problems that SME do not have marketing expertise or not in a position to hire someone who can jazz up with their sales. Paucity of marketing support and limitation of the resources is a characteristic of all SMEs. In this framework the discussion focuses on SME's typical traits and how these effect upon marketing characteristics within SMEs.
When it comes to marketing of products or services internationally, any small or medium company is always constrained by its scarcity of budgets, which in turn limits its growth. A B2B marketplace is a platform where sellers can list their businesses free of cost and leverage the power of internet. Not only they solve companies problem of reach to the buyers worldwide, the online marketplace also support their communication needs and help them display an array of products.
Lack of Knowledge: Lack of knowledge and information about the various schemes announced by the government.
Lack of Right Staff: Last but not the least SMEs are largely dependent on their staffs, if you fail in the recruitment process, you fail indeed. SMEs must hire right employees, who give their best and support the enterprise through their performances.
By seeing the growing obstacles in the way of SMEs, some renowned companies like IndiaMART.com and Hellotrade.com are taking initiatives to aware the SMEs about online presence, ICTs, online promotions and online advertisements to get rid of these shortcomings mentioned above . IndiaMART.com is doing this through a drive involving seminars, events and one to one commitments to illuminate the SME entrepreneurs.
