SME sector is the strength of present day economy and one of the most important segments for any nation. Despite its commendable contribution to the Nation’s economy, SME Sector does not get the required support from the concerned Government Departments, Banks, Financial Institutions and Corporate, which is a handicap in becoming more competitive in the National and International Markets. SMEs face a number of problems absence of adequate and timely banking finance, limited capital and knowledge, nonavailability of suitable technology, low production capacity, ineffective marketing strategy, identification of new markets, constraints on modernisation & expansions, nonavailability of highly skilled labour at affordable cost, followup with various government agencies to resolve problems etc.
Some of these hurdles comprise of inefficacy of SMEs to access continued development and
Lack of Finance: It has emerged as the most critical barrier for perfect capacity utilization and competing in the market. SMEs are not able to raise adequate funds from banks, especially for
high risk projects.Insufficient basic infrastructure facilities like irregular power and water
supply, bad road and railway connectivity etc are some of the factors that are hampering the
growth of SMEs in India.
Lack of Technology:One of the crucial factors that prompts in the success or failure of
enterprise is technology. The best use of technology no doubt enables enterprise in reducing
cost of production, maintain consistency in quality, improve productivity and finally develop
the competitiveness of the enterprise.
Lack of Planning:Another problem that is mainly faced by SME sector is the proper division
of time, which is usually the outcome of improper planning and strategy. Moreover, if you are
in debt then you have to be careful from your bankers and suppliers and off course your
employees who will be on your nerves on the salary day.
Lack of Marketing Assistance:One of the chief problems that they do not have marketing expertise or not in a position to hire someone who can jazz up their sales.Paucity of marketing support and limitation of the resources is a characteristic of all SMEs. In this framework the discussion focuses on SME’s typical traits and how these effect upon marketing characteristics within SMEs.When it comes to marketing of products or services internationally, any small or medium company is always constrained by its scarcity of budgets, which in turn limits its growth. A B2B marketplace is a platform where sellers can list their businesses free of cost and leverage the power of internet. Not only they solve companies problem of reach to the buyers worldwide, the online marketplace also support their communication needs and help them display an array of products.
Lack of Knowledge: Lack of knowledge and information about the various schemes
announced by the government.
Lack of Right Staff:Last but not the least SMEs are largely dependent on their staffs, if you
fail in the recruitment process, you fail indeed. SMEs must hire right employees, who give their
best and support the enterprise through their performances.
Lack of infrastructure: One of the major constraints for SMEs is lack of infrastructure
facilities and the absence of marketing platforms.
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