Small and Medium Enterprises Learned Lesson from Recession How to Build FutureBy Dipankar Das, Gaea News Network
Friday, March 26, 2010
Indian SMEs remain pretty much insulated despite the recent recession due to the fact that they do not have any capital expenditure or big spends. Rakesh Rewari, deputy managing director, THE Small Industries Development Bank of India (SIDBI), said an SME can sustain its value and grow faster if they adopt the idea of product diversification and tapping overseas market. The session included the speakers like Praful Jain, Head, Enterprise Practice, Markets, KPMG, R. Ganesh, Deputy General Manager, ICICI Bank and Parag Patki, CEO, SME Rating Agency of India.
Praful Jain, head, Enterprise Practice, Markets, KPMG, added that you need certain courage, conviction as well as the need for innovation and those attributes need to be practised in a long way to overcome resource crunch, something that crippled almost every SME. R. Ganesh, deputy general manager of ICICI Bank, stressed that his bank is committed to those SME units that can not attract venture capital funds or angel investors because of their size.
“With a problem-solving approach, if SMEs can use their existing resources judiciously, there is a conscious effort required to convert growth by default into growth by design. That will become a pillar for its growth,” he said.
Parag Palki, CEO, SME Rating Agency of India, outlined the increasing significance of a credit rating regime is increasing gradually and it works as a liaison among SMEs, banks and funding agencies, by proving their credentials. A good rating will automatically increase the chances of an SME’s growth story.