Propelling growth of SME’s was one of the main discussions that happened at TIE conference on Envisioning the Wired SME, Prafull Jain of KPMG India started off the discussion, he pointed out that SME’s need to concentrate on Sustainable scalability than just on Scalability and the specific challenges that SME’s are facing during the economic slowdown are reduced profitability and credit availability.
He said SME’s depict certain attributes like ideas, critical mass, opportunities and agility. The challenges that SME’s in india are specifically facing are
- Resource Constraints
- Lack of Strategic Thought Process
- Lack of Global Exposure
- Bandwidth Limitation’s
Ganesh R , DGM , ICICI Bank then took over the discussion , he said that for SME’s access to capital is crucial for scalability and that most of VC’s are Private Equity investors and entrepreneurs are averse to loosing the control for the investment.
He said that in slow down , the selectivity for funding SME’s has grown higher.
Parag Pataki of SMERA elucidated on the Management Evaluation, He listed out a number of characteristics of an organization considered to evaluate the company for investment, they are:
Basic Educational qualification of the management team, Relevant Professional experience, Business attitude, Motivation of carrying out the business, Strategies, Overall Organization capability, Profile of the Board members, diversified experience skills, the organization structure, relation between stake holders, policies and processes, transparency, ability to raise capital, networking, succession plan and track record for payments.