SMEs have previously relied on few customers and limited market segments. During the recession, many of the SMEs were hurt by the dependence on the fortunes of such customers. SMEs who had broad based approach survived and thrived during the recession. The focus has now shifted to extend the customer base, enhancing the quality and being consistent in on time delivery.

During the recession, the technology providers too changed their strategy and have been giving attractive packages in terms of SAS, low cost software etc. Many of the SMEs have adopted to the change and have started implementing ERP and low cost CRM packages.

We have focused on retaining the customer loyalty by enhancing the value per Rupee. We have also focused on productivity implementation measures like Six Sigma, TPM and small group projects. Emphasis has also being given to Personal Development programe so that key functional specialists can take on additional responsibilities to assist the growth of the organization. Attractive reward and recognition schemes have also been put into place to achieve the desired impetus to growth.

The economic recovery and the upsurge is reality. Our company has shown growth in this financial year and we find that selected segments are doing very well. The domestic market is big enough to absorb the products and service offered and always acts as a cushion against unexpected shocks. The Government should provide assistance in terms of easy credit and infrastructure like Road and Power as well as prudent tax system and labour laws.

Part of the blame for poor response to new technology should also go to the technology providers. Awareness has to be brought in and lot of convincing is required to push the SMEs to opt for new technology and optimization of their operations. Most of the SMEs are run by Technocrat Entrepreneurs with very little backup support. Therefore, their focus will be more on survival and short term goals. We have however, seen that many of the progressive SMEs have adopted modern practices. The Government can also give boost by giving special tax concession to SMEs opting to upgrade their technology.