MOST BUSINESSES TODAY ARE BEING STAGNANT: is this really part of the economic meltdown?

It’s important to recognize that small-medium enterprises (SME) constitute a much bigger market share compared to giant multinational companies (MNCs), both volume and value wise, just like low-middle income consumers fetch close to 90% share of the world economy against a handful of high-end consumers. However MNCs only chase the minority group of consumers while the bigger chunk of market and opportunities remain untapped and unattended, unfortunately

SMEs face tough playing conditions in the name of less marketing & business development budget, weak capital situation, high production/procurement costs, not much market access in comparison to MNCs who are blessed with beefy marketing budgets, global market access, having low cost of finance and production, making it easier to sail through

Being a product developer it is important to understand the target audience, its strengths and its inherent weaknesses

When we talk of shortcomings, and weaknesses, its only fair that we also highlight our strengths and solutions thereto, so we remain positive and think progressively. First up, we must acknowledge that this is an “opportunity situation” we just need to tie to 2 ends of this bridge together, however its not that easy as it sounds, a lot of patience and dedication is needed as the required gestation period may trigger motivation to subside prematurely

If we look at India, and China, they are being told time and again about the growing number of population to feed, but what we ignored was the fact that they are the 2 biggest consumer markets, which MNCs are now slowly grasping, but with a mindset to cater high-end customers, they face challenges and lack of application due to their shortcomings in understanding these ground realities such as the buying power-affordability factor, consumption-behavioral patterns/habits, frequency of income generation etc. On a separate note can we see a trying situation in these 2 countries in the event if the world shuts on them? not at all! because they are producers and they are consumers, these are captive markets in their own right, which are not dependent on external help which is evident from the meager market share MNCs are playing with in these 2 countries

Talking of Banks, they want to develop SME clientele as a matter of dire need without any VISION, knowing it’s a hidden growth track, but remains either unaware or unwilling to understand the mindset and ground realities – just to give one example, if there is a country, where we don’t have any cellular network, would we sell mobile phones there? the answer is NO – we don’t – banks also are being up against a similar situation, they go out in the market with a stiff neck to weak borrowers, posing to be one of them but when they do that, they lack trust & confidence, so SMEs tend to shy away from such banks knowing they wouldn’t be entertained the way their business needs are – banks also fail to understand that they cant expect these entrepreneurs to come up with adequate asset to pledge, which they call collateral before they could consider the credit request

As sellers of services and consumer products, its good to understand that we are looking at a big canvas, and we need to paint good, and with bright colors, and we should start draw gridlines and divide tasks into smaller targets, so we remain focused and don’t compromise on the quality of the work we are putting together – with this spirit in mind, we need to address key areas to focus on, we make banks understand the need to change the cultural block, they be more proactive and be good listeners, they should accept the change and readjust the direction, its important to speak the same language, so when it comes to mitigating risk, we let banks feel comfortable to see we spread the risk into thousands of small borrowers rather than putting bigger chunks in the hands of corporate giants, if we look at the history, small borrowers are best paymasters as they don’t have a fall back strategy to lean onto in an hour of need, so default risk is not just negligible, we also stand to gain on the strength of the size of business we do with SMEs compared to what we do with the big boys

Developing a sustainable business model is a must: which means we plan for our next generations right now, we need to establish a strong platform and we invite strategic partners such as banks, insurers, technology, cellular network, logistics, products supply-chain etc., to come on board so we built-in a one-window service to our SME customers – the business must operate like a family of captive customer base and we drive them together while making sure we let everyone make money with a conscious mind and be content with what we make as an individual, it never pays when we start to defy nature

Lets be the change, we want to see, socially & economically

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