Micro, Small, and Medium Enterprises (MSMEs) stand as pillars of innovation, growth, and employment for India. Yet, building the company and sustaining in the long run can often seem a daunting task for these enterprises. Let’s take a look at these 7 main problems small businesses face and find ways to solve them together.
1. SCARCITY OF SPECIALIZED SKILLED MANPOWER
Obstacle: MSMEs find it difficult to hire experts at their peak. Most employees hired have mid-level expertise in skills hindering the company’s ability to innovate and adapt at the pace of big competitors.
BUG Solution: Investing in mentors, accessing training programs in a structured manner and forging partnerships with educational institutions can bridge this gap, empowering MSMEs with the talent they need to thrive.
2. LACK OF FINANCE TO SCALE UP TEAMS, TECHNOLOGY & INFRASTRUCTURE
Obstacle: Companies at the lower end, Micro and Small Enterprises specifically, lack knowledge of funds and grants from various sources available to them. They also lack credit history, collaterals and the ability to take a high risk due to which access to affordable credit remains a persistent challenge.
BUG Solution: Exploring government schemes and subsidies, awareness about the massive range of alternative financing options available in the market and improving credit reporting systems raises credit worthiness and facilitates easy access to financial resources. This brings them confidence to make the right financial decisions that would help them break even faster.
3. EMBRACING TECHNOLOGICAL ADVANCEMENTS
Obstacle: Technological growth is crucial for MSMEs as it enables data-driven decision-making and provides cost-effective solutions, empowering MSMEs to adapt to changing market dynamics and stay ahead of the competition. But administrative capabilities and cost of technology is a huge hindrance.
BUG Solution: The fear of technological advancements in your own business is the biggest hindrance and overcoming this, is a game changer for curbing competition. Understanding this is the first step forward. Next, explore industry initiatives through subsidies, grants and most importantly, forge partnerships with technology providers that can facilitate the adoption of new technologies, driving efficiency, fostering innovation, and enhancing customer experiences.
4. REGULATORY COMPLIANCE ISSUES
Obstacle: MSMEs typically have fewer legal resources available making it challenging for them to dedicate personnel or funds to navigate complex regulatory. Moreover, the fear of non compliance can prevent MSMEs from growing.
BUG Solution: Working with MSME Dedicated Organizations which provide legal resources at subsidized rates and establishing clear policies, procedures, and internal controls through regular audits can streamline compliance efforts and mitigate legal and financial risks.
5. GOING GLOBAL
Obstacle: MSMEs may lack access to market intelligence, consumer trends, regulatory requirements, and export/import procedures, limiting their ability to make informed decisions and navigate foreign markets successfully.
BUG Solution: Leveraging e-commerce platforms, participating in trade events and fostering collaborations between MSMEs, larger companies, exporters, distributors, and logistics providers will bring in complementary strengths, resources, and market expertise to a company, and subsequently the confidence to make a mark in a larger market.
6. BRAND VISIBILITY AND GROWTH
Obstacle: MSMEs must prioritize among various marketing channels, tactics, and campaigns while managing competing demands on their limited resources. Deciding where to invest time and money can be challenging without clear data or insights into the most effective strategies.
BUG Solution: Outsourcing certain marketing functions or tasks to external agencies, consultants, or freelancers with specialized expertise will allow MSMEs to access professional services and strategic guidance without the need for large internal marketing teams or resources. Also adopt digital platforms and agencies to streamline marketing processes and reach target audiences more effectively
7. MANAGEMENT EXPERTISE AND ACUMEN
Obstacle: MSME owners and managers may lack formal management training or experience, leading to gaps in knowledge and expertise in areas such as strategic planning, organizational development, financial management, and human resources.
BUG Solution: Seek guidance, mentorship, and support from external sources such as industry associations, business networks, mentors, advisors, or consultants who can provide valuable insights and best practices. Additionally, create a Board of Trustees or Mentors who can guide the leadership team with practical solutions.
CONCLUSION:
Growing from micro to small, from small to medium, and from medium to a large company requires skills, techniques, finances and most importantly, a strong leadership team with unwavering commitment to growth and contribution. Building these resources with focus is imperative for MSMEs to survive, and is crucial for India, because through innovation, collaboration, and resilience, MSMEs can carve the path to success, not only for themselves, but also for their employees and Bharat’s economy.
BHARAT UDYOG GAURAV (BUG) is on a Mission to create remarkable Digital Footprint for 1 MILLION MSMEs. Join the Mission, become a BUG member by filling the form below and take your company to exponential success.
