Opportunities and challenges for SMEs

India's small and medium industries are entering into the supply chain of international companies as they focus on improving the quality of their products and services, benchmarking themselves with global competitors, said industry experts at the Business Standard Smart Business seminar on “Opportunities and challenges for SMEs” organised in association with Karnataka State Small Industries Association. According to the panellists, opportunities had increased for small businesses due to shifts in technology. “And those who are nimble and adaptable can tap not just local markets but also global opportunities,” they added.

"As MNCs percolate into tier two and tier three towns in India, SMEs supplying to them become a part of their global supply chain," said M H Bala Subrahmanya, professor and chairman of Department of Management Studies at the Indian Institute of Science.

"Indian companies have shown expertise in high precision, high technology areas," added Uma Reddy, managing director, Hitech Magnetics and Electronics.

Pranav Sharma, Head, SME Development at Birla Sun Life Insurance, opined that a renewed vigour was visible among SMEs with Make in India and Digital India.

Mr V K Dikshit, President, KASSIA, said that small entrepreneurs have to compete for talent with large companies and need to develop unique training methods to train and retain people.

"Access to institutional finance is not difficult for SMEs," said A C Sahu, general manager at Small Industries Development Bank of India (SIDBI).