Small and Medium Enterprises play a very important role in the development of India. They not only generate high employment opportunities but also contribute to the GDP Growth and Export of the nation on a very high scale. Though Indian SMEs are booming with higher rate of growth, they have their classic problems too.
In India, SMEs are not well - organized and are entrapped in their own limitations. They have dreams to grow, capability to expand, however, the reality is not the like. Various entrepreneurs even don't know which form of organisations (Proprietorship, Partnership, Private Limited Company,LLP etc.) is suitable to them. Many SMEs are facing Funds Management Problems like Working Capital Crunch, Blocking of Funds etc., Low margin between Cost & Price and Labour Problems. As the size is small or medium, a small problem can restrict the growth of the whole organization.
The Credit Rating and Loan Policies of the banks mainly comprises the Analysis of Financial Statements, Study of Receivables, Inventories, Ratio Analysis and Credit Scoring. However, the analysis does not understand the typical problems faced by the SMEs. The whole process results into delay in loan processing, non – availability of sufficient & required funds, higher rate of interest due to poor ratings. The banks do not look beyond the statistical techniques and conventional financial factors and SMEs never carry out SWOT of themselves.
The Role of Chartered Accountant is not only to comply with certain formalities like Tax Audits, Project Reports, VAT Audits etc. but cross traditional approach to understand the need of their clients. The SMEs need the expert advise in various issues including financial and non-financial factors.
The banks, Auditors, Government and SMEs themselves all should change the approach to achieve the expected growth of SMEs and economy as a whole.
SWOT ANALYSIS OF SMEs
WHAT WE SERVE
We have specialized our services to serve SMEs considering their specific needs and requirements. Our service structure to the SMEs includes training in strategic funds management, capital budgeting alongwith routine accounts & audits. We serve SMEs in the following ways :
- Viability Study of Projects
- Handling Specific Implementation of Projects
- Regular Analysis and Report of Financial & Non-financial Data
- Development of MIS Structure
- Management Consultancy
- Expertise in specific issues such as pricing strategy, Funds Management etc.
- Focused Internal Audit