Are Indian SMEs getting their basics wrong?

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Bikky Khosla | 19 Aug, 2008
With the markets remaining volatile, small and medium enterprises (SMEs) are finding it difficult to keep pace with the ever-changing equations in the global scenario. And in more cases than one they themselves are to be blamed.

Most SMEs who are complaining that they are not getting enough enquiries or are unable to expand their client base are actually doing things wrong and the reasons are manifold. However the foremost reason for their lagging behind is the fact that they don't keep themselves up to date. They are blindly doing business and are unaware of the policy changes of not only their country, but also of the countries they want to do business with.

For instance, at a time when all know that there is a slowdown in the US economy, trying to do business or building a clientele there, is nothing less than being foolish, to say the least. Instead they should be looking for alternate markets in other continents. However, owing to ignorance of the realities and the fact that they don't consider information dissemination media like newspapers, news portals, TV news channels as important, they are caught unawares and are left blaming other forces for the dip in their business.

This is also true of SMEs who do business generation online. Here they are trying to find buyers online, but are unaware of how it's done. In many cases, the product names they are using in their websites are not in line with what potential buyers are looking for.

For instance, if you are looking for international buyers of flake rice and you are using the word poha as the product, chances are you will never come across a buyer.

This is just a small example; the fact is that SMEs, particularly using the online medium for business generation must be very particular and meticulous of the product names and keywords they are using. They have to understand that product information help buyers to find one's products faster because they are able to narrow their search by product features such as specifications, functions, benefits, and their uses.

During my visits to some of India's key overseas export markets, where I met several buyers, they all opined that the content of most of the Indian sellers' websites were not related to the products they were selling. Some even said that several sellers had more information on their companies rather than on their products. Some buyers also complained that the images the sellers were using did not clearly portray the products they were selling, while some were outdated and irrelevant.

What surprised me most was when certain buyers in these countries showed me the emails that certain Indian SMEs were writing to them. They were not prompt in replying, with many sending mails weeks after they received the enquiry, while some were unaware of email etiquette. Most emails were one-liners and informal lacking any information of what the buyer was seeking.

I think it's time that SMEs looked into these issues and incorporated changes if they are to remain in business, considering the existing cut-throat competition in the market. There is no doubt that they can do so...all they need to do is keep their eyes and ears open and grab the opportunities before them.