As the economy grows, micro-small and medium-sized enterprises(SME’s) experience the pressure to do more due to the increase in competition.
Micro-, Small and Medium-sized Enterprises (MSMEs) are upcoming businesses that have been in existence for between 1-3 years and usually have between 1-30 employees. According to the data provided by the International Council for Small Business (ICSB), formal and informal MSMEs make up over 90% of all firms and account, on average, for 70% of total employment and 50% of GDP.
These statistics are evidence that the MSMEs should be considered with much importance and to be supported. It is because of this reason that the United Nations set aside June 27th, 2021 as Micro-, Small and Medium-sized Enterprises Day, to raise public awareness of their contribution to sustainable development and the global economy.
Technology has made it easy to do more with less, functions that would originally require intensive labour are now done faster. Artificial Intelligence has enabled businesses to offer personalised marketing to their customers as they are now able to understand their customers’ needs, personalities and wants.
Improving the productivity of MSMEs is a worthwhile endeavour. With the right kind of support, Micro-, Small and Medium-sized enterprises could significantly boost economic growth. Governments can play an active role in ensuring that they capture this opportunity. MSMEs can grow faster than large companies by adopting the proven technologies and practices of larger enterprises.
We’ve put together 4 ways in which MSMEs can grow and ensure long-term success:
The changing times call for organisations to become adaptive and broad-minded to allow for the smooth transition into the new way of life. Collaboration is an important value that an MSME needs to adopt in order to boost productivity levels. The best MSMEs already work in a collaborative fashion to deliver value to their clients and ensure that employees feel connected to their mission.
An agile workplace looks like empowerment, working towards a common purpose, cohesion, ability to respond to change in a quick manner, proper crisis management, and being swift in understanding the changing global trends.
Digital Technology has made it easier for businesses to connect with their target market and to build a loyal customer base. MSMEs need to leverage good connections with people in order to grow and increase their market share. Through the digital transformation, businesses easily respond to customers’ queries about their products, build a community of people through social media, conduct market research so as to understand how their brand is perceived in the minds of their target market and increase brand awareness.
Building a good impression with the right target market is a critical step for every MSME in order to spark an interest in the products or services and to generate quality leads. With an increase in the leads generated there is an increase in the chance of converting those to sales which leads to an increase in the revenue. Eventually, the MSME becomes sustainable.
Hiring the right people that are in line with your business culture is a step in the right direction. Besides professional qualifications, passion and purpose are important values to consider as they will determine the amount of dedication that they will bring to the table which is key in achieving the bottom line of the business. MSMEs offer more flexibility and adaptability than large firms, as it is easier for them to provide promising employees with opportunities for visibility, measurable impact and a path to ownership.
Focusing on each individual employee enables MSMEs to create more cohesive workplace cultures that foster tighter personal connections. The new normal brought about by the covid-19 pandemic has occurred alongside technological breakthroughs that increase connectivity across distance and make it easier for teams to collaborate efficiently.
With the right partnerships, MSMEs have the ability to explore their maximum potential and boost their productivity. Governments play an important role in ensuring that they provide a conducive socio-economic environment for enterprises to grow. Production costs, taxes, levies, duties need to be considered such that they are not frustrating the growth efforts. MSMEs don’t have to be subservient to one company as part of their supply chain, but they can be part of an industry or a company’s value chain.
In most cases, they often lack independent brand validation, being part of an established value chain gives them a clear identity. Working in a coworking space is one way of building quality connections with other businesses and it is a great place for sharing notes and uplifting each other.