Most SMEs expect increased revenues in 2010: Alibaba.com
Most of the Small and Medium Enterprises in India believe that the market condition, which was battered by the global financial crisis, will improve in the new year, resulting in increased revenues and growth, says a study.
According to report prepared by Alibaba.com-Synovate Business Consulting, 92 per cent of the SMEs believe that revenues would grow by around 6-15 per cent in 2010, while nearly 58 per cent feel that performance and profitability of their businesses would turn upwards.
About 56 per cent of the SMEs are highly optimistic that the coming year will be better in terms of overall business activity and profitability of the industry, it added.
The survey analysed data collected from 500 SMEs spread across the country spanning various industry verticals.
The report also reveals that most SMEs have benefited from globalisation that has given them access to wider markets, improved business processes, better managerial capabilities and greater competitiveness.
"About 73 per cent of SMEs in the Engineering Goods industry and 71 per cent of SMEs in the Food Processing industry believe opportunities to enhance scope of business and efficiencies in technology and operations are the key advantages that have accrued to SMEs due to globalisation," Alibaba.com Head of Global Sales Brian Wong said.
The US is the biggest export market for most SMEs followed by Germany, the UK, Singapore, UAE and Saudi Arabia, Wong added.
On the flip side, most industries, including major SME clusters, have experienced fall in number of customers and order quantities coupled with increasing difficulties in managing international customers and increased pricing competition, due to globalisation.
"SMEs are the backbone of the Indian industry, with a consistent contribution of 45 per cent to India's total manufacturing output and six per cent to the GDP over the last five years. With a total SME base of around 14 million, India is a very important market for us," Wong said.
"SMEs are the backbone of the Indian industry, with a consistent contribution of 45 per cent to India's total manufacturing output and six per cent to the GDP over the last five years. With a total SME base of around 14 million, India is a very important market for us," Wong said.
Alibaba undertook the study to understand issues affecting their business growth and specific challenges faced particularly after the recession. "With the insights gained, we will work on a definitive plan of action to serve Indian SMEs,” Wong added.
