A large number of small and medium enterprises (SMEs), remain confident that their business will grow over the coming year despite a slowing Indian economy and tight credit markets, says a survey by Kadence Research India.
The research firm surveyed 300 SMEs across Delhi, Mumbai, Chennai and Kolkata that employed an average of 34 employees. The respondents were mostly their proprietors or managers.
“SMEs view the economic slowdown as a challenge, but one that they are ready for,” says Aman Makkar, managing director at Kadence Research India. SMEs account for almost 50% of industrial output in India and 42% of its exports.
One of the pain points for SMEs remains non-availability of funds from banks and financial institutions amid a global credit squeeze.
Around 45% of the respondents said they found it difficult or very difficult to access bank funding.
Other hurdles to growth include weak marketing and distribution networks, taxes and duties and inflation of raw material costs.