Be innovative to beat competition

In this competitive age, small enterprises need to focus largely on its innovative abilities in order to gain an edge over its competitors and sustain long-term success. Innovation is the operating keyword for the higher growth of SMEs and in supporting the entrepreneurial drive. Favourable development of SMEs depends upon the manner in which a small firm can launch new products at low-cost price points and promote the same distinctly from the wide range of similar products available in the market.

Vehicle to success

A dynamic and self-sustaining culture of innovation is a prerequisite for small enterprises to carve a niche in their respective fields, thereby moving up the value-chain. Resorting to smart, innovative strategies and deploying effective means to promote product basket help to woo clients and push up sales both in domestic and international markets.

"Heightened market competition both at national and international fronts makes it imperative for SMEs to adopt innovation and offer value-added business services to counter competition from low-cost services markets," said Hemant Ajmera, proprietor of Marble Kingdom, a small-sized marble exporting unit in Chennai.

Although most SMEs are aware that promoting innovations and introducing regulatory changes facilitate higher growth, they are seen to face several barriers with regard to adoption of innovative techniques for their business. Lack of technical expertise and inadequate financing support, among others act as prominent barriers for SMEs to take up innovation.

"Inadequate emphasis on industrial innovation, insufficient pricing power as well as poor understanding of the market and consumer needs serve as major hurdles for SMEs in the adoption of innovative tools and strategies," said Shankar Das, proprietor of KDR Engineering Works, a small-sized engineering firm in Kolkata.

Working on identified areas and creating a sustainable model of innovation will play a pivotal role in catapulting SMEs to the forefront. Promoting innovation and encouraging increased SME participation is also a key to the success of an economy.

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