Small companies best at boosting exports

Staff Reporter | 13 Nov, 2007
With the global markets shrinking into a single market — thanks to the Internet, Small and Medium Enterprises (SMEs) are emerging as the best vehicles for carrying out exports. This phenomenon is not limited to Indian SMEs, but to SMEs all over the globe.

A study too, published by the Bruegel think-tank, has suggested that respective 'governments would do better to concentrate their trade promotion efforts on helping smaller exporting companies to become more competitive and expand rather than assisting the corporate superstars that can fend for themselves.'

I think our government too has a lot to learn from this report titled "The Happy Few." We can see the same potential in Indian SMEs too, but somewhere down the line our small enterprises are usually found to be fighting for their very survival.

Even our government think-tank will agree that SMEs form the backbone of the economy. Despite this they are still afflicted by numerous drawbacks. The credit inflow to SMEs today is almost negligible. I feel the government should take steps to encourage credit rating in conjuction with cluster wide measures to minimize credit risks.

It goes without saying that steps should be taken for technology development in the SMEs in order to enhance their competitiveness.

Above these, industrial design expertise should be provided for cost-effective solutions on real time design problems. This will result in continuous improvement and value addition for existing products.

So let the bigwigs boast about the mega-deals and acquisitions. Authorities need to concentrate their trade promotion efforts on helping SME exporting companies to expand rather than assisting big corporates. Let's hope good sense prevails.