Globalization has not only redefined the term ‘small’ in Small and Medium Enterprises but also posed a major threat to their existence as many of them were unable to adapt to the change in the business environment at the right time.
Let’s face it, SMEs are different… in size, shape, structure, business objective, and approach to innovativeness. While this has made them more flexible and agile than the larger firms, in today’s fast-changing world it also contributes to their ‘fragility’. Thanks to the Digital -Age, the technological advancements that only the biggies could afford are now available to everyone at a low cost using the pay as you use model.
Technology is helping enterprises grow despite their minuscule resources. But what are the key challenges faced by them? And how can they overcome these?
Where to Start? – From where one should begin has always been a considerable challenge for the SMEs. Often Entrepreneurs are unable to prioritise their tech requirements. Technology can transform any part of your business, however, it is important to ensure that spends are made in such a manner that budgets are dedicated to high impact areas first.
Ignorant of Market Trends: This is a challenge that every SME faces at some point in their tenure. Being a part of the SME Industry requires an organization to be ahead in the game by keeping up with market trends and experimenting with what suits their respective organization. Entrepreneurs are often busy handling day to day crises and miss out on keeping a tab on how their markets and customer behavior are changing. .
Lack of Presence: How are your potential clients supposed to reach you when they won’t be able to find your presence in the first place? Nobody is going to directly visit your office premises for your services. They are going to research and collect information about your business and your services? And how is it going to be in your favor? Through a strong offline as well as an online presence. Going digital will help you to establish a strong online presence along with a better number of quality clients.
Paying for strong talent – Many SMEs have big aspirations in terms of growth. But, they have very little capital to invest in established growth models like Digital Marketing and technology uptake. Digital transformation is difficult for small businesses, but it also presents immense opportunities to improve revenue and run an efficient operation. It is important to choose the right partner with a credible background to help you. Experienced consultants bring in reliability to the solution resulting in an assurance of money well spent rather than trying hit and miss cheaper vendors. Myopic approach of choosing the lowest cost vendor is resulting in many SMEs burning their fingers with their spends realizing no results.
It is about choosing the right partner with the right experience to partner you in your journey rather than the lowest cost partner.
Don’t let the digital transformation initiatives have both created and lost SMEs a lot of money. What has it done for you?