“My ambition far exceeds my talents” George Chung in Blow (Johnny Depp’s character)
SME is a highly vibrant sector in India. SMEs not only play an important role in providing large employment opportunities at comparatively lower capital costs than large industries but have also helped in the industrialization of rural & backward areas. They have reduced the regional imbalances, ensuring a more equitable distribution of national income and wealth. It contributes to 29% of the GDP and is predicted to contribute over 50%.
Ambition has been the key to this success. It has provided direction to both talent and resources. Unknown names, backed by nothing but ambition and resourcefulness are today being covered by newspapers, getting large funding and innumerable customers. Unicorns and IPOs are frequently on the front pages of the newspapers.
A Level Playing Field
There has been a major shift from large corporates to entrepreneurial ventures. Various industry veterans are now moving to entrepreneurial ventures as they have become very attractive and accepted by society. Customers are open to trusting the niche skills that these organizations bring to the table and it has become financially remunerative. A level playing field has been created for SMEs.
Increased Market Access
Global reach through marketing and lower travel costs have created increased market access for SMEs. In the digital age, people can now have access to greater markets, they can cater to larger audiences and sell their products across the globe. Air travel has become cheaper helping SMEs further in accessing different customers and geographies.
Banking & Technology
Today, technologies have helped to close the gap that SMEs earlier had to face. ERP, CRM, AI, Digital – these are as common in SMEs as in large corporates. Also, the banks have responded to the needs of SMEs and have changed their approach dramatically and evolved accordingly. They have come up with separate products that now cater to SMEs exclusively making funds more accessible for them.
Furthermore, the banks now look for tie-ups with SMEs and beyond large corporates only so that more and more SMEs can get access to capital for expansion purposes. The increased access to debt finance has supported SMEs to a larger extent.
The Bottom Line
The above-mentioned factors have helped SMEs to come up and show their potential in the market. Ambition has helped SMEs to come with better ideas to connect with their target audience.
Going back 5-10 years or so, brands like Google, Airbnb and Uber were nowhere. None of these brands came from large industrial houses or prominent businessmen or women. So have you ever wondered what’s that one thing that has worked for them?
Acquiring, nurturing and building customer relationships. Having a scale-up model, having an outreach program, building a brand – are the common elements. These have built large brands out of nothing. It has been a function of ambition and an ability to think big.
Whether you are producing, serving or aggregating – Being ambitious will determine your growth.