As per a latest study conducted by SAP and Oxford Economics of 2,100 executives across 21 countries, increasing global competition has been cited as the top concern affecting Indian SMEs. 43 per cent Indian SMEs said global competition as their major worry (the global average is 26 per cent), the highest ranking among all countries featuring in the study. Economic uncertainty (34 per cent) and shifting customer expectations (29 per cent) were second and third most critical concerns.
As per a latest study conducted by SAP and Oxford Economics of 2,100 executives across 21 countries, increasing global competition has been cited as the top concern affecting Indian SMEs. 43 per cent Indian SMEs said global competition as their major worry (the global average is 26 per cent), the highest ranking among all countries featuring in the study. Economic uncertainty (34 per cent) and shifting customer expectations (29 per cent) were second and third most critical concerns.
The survey SMEs: Equipped to Compete was conducted among five industries, was conducted in April and released earlier this month. It aims to better understand how SMEs around the world are leveraging technology to boost innovation, strengthen customer relationships, improve agility, and expand their businesses.
The survey highlights global expansion, cited by 58 per cent as the key to growth, followed by innovation, cost reduction, and efficiencies (45 per cent) and expanding products and services (35 per cent).
“There's been a basic change in mindset. Earlier, SMEs did not look at inducting new technology, but a new generation is looking at it as a way of creating efficiencies. We have seen SMEs adopt new technology faster than even larger enterprises,” said Priyadarshi Mohapatra, Vice-President, Ecosystem, Channels & General Business, SAP Indian subcontinent.
The surveys says that there are only two per cent Indian SMEs generate no revenue outside the country today, and this will fall to just one per cent in three years - the most “globalised” of all the countries surveyed. Nearly half (48 per cent) expect to be generating 21-40 per cent of their revenue globally in three years.
Further only three per cent of Indian SMEs expect to be operating only in their home country in three years (down from 13 per cent today), and the number operating in six or more countries will rise from 24 per cent to 56 per cent (compared with a global level of 15 per cent and 35 per cent, respectively.
“Indian SMEs are now doing business across the world, including Europe and the US. They are also increasingly looking at emerging markets,” said Mohapatra.
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