A&A Business Consulting, an SME consulting firm, carried out a nationwide SME survey of 0.08 million SMEs which also found that 20 percent of SMEs found it difficult to manage working capital.
A&A Business Consulting, an SME consulting firm, carried out a nationwide SME survey of 0.08 million SMEs which found that 47 percent of Indian SMEs highlighted sales as a major challenge. Further, 20 percent of SMEs reported that they are finding it difficult to manage working capital, a company press release said.
This could be attributed to their inability to pay off short-term expenses or their assets being underutilised, it added. The survey also found that with the economy going through a sluggish phase, liquidity crunch appeared to be a major growth deterrent.
The survey further highlighted that 20 percent of SMEs are facing problems in getting and retaining good employees.
Talking about the survey, A&A CMD Pravin Daryani said, “We are here to solve the core issues being faced by SMEs. We want to handhold them to the next level. Our survey revealed the real pain points that Indian SMEs are facing at this time. It will allow us to build a strategy to deal with them effectively.”
The survey revealed that eight percent of SMEs are facing issues with branding and marketing. This has adversely affected their ability to convert prospects into consumers. Inability to attract the right talent could also be attributed to the lack of marketing and branding activities.
Talking about the survey, A&A Group CFO Vishal Kumar said, “Indian SME segment is an unorganised sector. The prolonged economic downturn has made it even more difficult for them. The nationwide SME survey has uncovered the underlying challenges that the SME segment is facing and brought it to the foreground. We will take corrective actions and help them overcome their immediate challenges.”
The survey also found that five percent of SMEs are facing hurdles in creating a profitable business model. Without making profits, SMEs are compelled to downsize, which has exacerbated the unemployment problem in the country.