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What Are The Most Important Needs Of A SME?

Small or Medium Enterprises (SMEs) are defined differently in different places. In the U.S, they are defined by the number of employees (businesses with less than 500 employees are SMEs), while India uses the total invested capital to define an SME.

However, the fact that they are considered to be the backbone of the economy doesn’t change anywhere. This is because of their contribution to the GDP of all these different economies, along with the fact that they provide most of the employment.

Formal SMEs are said to contribute 60% of the total employment and 40% of the national income. And these numbers increase even more when you include informal SMEs. This is particularly true in emerging economies like India.

Needs Of An SME

Starting an SME, and having it take off, is easier said than done. It involves a lot of work and effort. However, it isn’t impossible, especially if the following factors are kept in mind:
  1. Customer Service: Having great customer service is an important part of running a successful SME. It is always good to form strategies to keep existing customers and gain new ones. In fact, the personalized approach to get a SME Loan. That would be able to provide, is one of the reasons customers would prefer going to them, instead of a larger corporation.
  2. Branding: Branding is an essential aspect that SMEs must focus on to take off well. They should focus on branding the product/ service they are engaged in. A visible brand would benefit the business revenue, and would also have major benefits in the long term. However, SMEs should remember to be consistent with their brand across platforms.
  3. Consistent Quality And Volume: The quality of the product or service an SME provides should be consistently good. More so because many SMEs are suppliers to larger corporations. Moreover, the quantity/ volume of the goods/ service they produce, should also contribute to advance and improve the industry they work in.
  4. Marketing: A sound marketing strategy is an SME’s best friend when it comes to acquiring new customers. In today’s online world, digital marketing is the trend. SEO, blogging, social media, text/ display ads and other forms of digital marketing all provide SMEs with the ability to reach a wider market and customer base.
  5. Going Online: With the internet taking over everywhere, it is almost impossible for an SME to survive without a strong online presence. The first step to achieve this is for an SME to have a well-designed website, that clearly defines their products/ service, brand, and contact details. It should also have links to the company’s social media accounts.
  6. Recruitment And Skill Development: Besides customers, an SME also requires talented employees to help it grow. And attracting them is something an SME should work on. This can be done by offering a decent compensation plan, along with additional benefits. Additionally, an opportunity to learn through relevant industry-related training programs would also attract more talent.
  7. Diversification: While having a niche expertise is good for a large corporation, SMEs would be better off expanding their products/ services. Diversifying across customers is a good idea as well. This reduces the risk of client and product concentration and opens wider doors in terms of market and revenue.
  8. Financing: This is quite obviously one of the most important factors an SME should look into. Besides internally generated working capital, there are other external sources of SME finances as well. These include loans for SMEs and partnering with investors. There are many NBFCs like Bajaj Finserv that offer SME finance in India. An SME can check their eligibility and apply online to avail such a loan.
By keeping these factors in mind an SME can easily grow their business and reach new heights!
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