Its the buzzword. Its there everywhere- contributing to indian`s increased share in international trade and a fair share in generating quality employment. They are there everywhere textiles,food processing,fabrication,gems and jewellery. They have grown rapidly and keep growing making banks to set up dedicated business units just for SMEs
SME have mastered the art of keeping costs under control all the while from conceptualising to commercial rolling. One best example is of a food processing unit. When inflation was in double digit, this SME ensured that cost of setting up operations does not exceed even 2%. SMEs have to have strict cost control on everything from procurement to manufacturing and distribution. That`s where their survival comes from. They have identified and developed a niche area for themselves . All this is fine in a within "home currency" set up
But for most of them this far from true. As either of their business elements are linked to Firang currencies like the euro or the dollar or indirectly to the other asian peers or the chinese yuan.
The volatility or rather lack of understanding w.r.t how to overcome this has made many a SME sit on the edge !!
