Small and medium-sized businesses account for 99% of the private sector companies. But, out of the big business limelight, these businesses are all too often overlooked by policy makers and the complexity of the SME leader’s job is grossly underestimated.
In the last few decades, the Small and Medium Enterprises (SME) sector has grown vibrantly and contributed significantly towards the growth of various economies around the world. Without undermining their involvement in socio-economic progress of the nation, it is expected that the SMEs will continue to play a huge role in achieving the sustainable development goals. Referring to the global competitive market, it is inevitable that the SMEs need to take a proactive approach for their businesses and maintain linkages to sustain while aligning themselves with the sustainable practices of supply chain of the larger corporations.
As per the World Bank estimation, the SMEs contribute towards 45 per cent of total employment and 33 per cent to the GDP of the emerging economies.
With India shifting gears toward achieving new milestones through its developmental initiatives, the role of SMEs needs to be brought into the limelight with all the due respect and honour that they deserve. According to the MSME Annual Report 2014-15, there are 488.46 lac units across the country accounting for 37.54 per cent of the country’s Gross Domestic Product (GDP) and about 44.70 per cent of the country’s total exports.
Research has reiterated the role of SMEs in facilitating CSR in the country will be a crucial factor for the overall development on the various aspect and for the deeper penetration in the remote areas of the country. It is believed that CSR shall be beneficial for the SMEs, which will not be a shortcut to business success, but an investment that would pay off in the long run.
In conjunction with the Sustainable Development Goals, the SME’s will inevitably have to align their business operations in accordance to the norms and charter. Thus, as a pro–active approach, SMEs have to realize and tap the benefits of social and environmental accountability towards the society. Strategically, it will help the SME’s to explore basic predicaments often faced by them i.e. visibility, positioning, marketing linkages, skilled workforce, engagements, investments, partnerships on technological aspects, building competitive capacities, quality, increased stakeholder base and adaptability amongst others.
Though the government has introduced various schemes and policies for the development and promotion of the SMEs, however, with the change in the market trends, the sector requires a robust business management strategy, a rethinking and an innovative redesigning of its engagement approach in order to gain a competitive edge in the global market and to ensure its sustainability.
Integrating Triple Bottom Line approach into their business framework shall help the SMEs maximize economic gains and derive competitive advantage in the global markets. Some of the advantages are:
Owning to the different sets of requirements in the SME sector, Fiinovation, has customized its practices for approaching the socio-economic growth and sustainable development through the SMEs as per the need of the community wherein the businesses are operational.
Some of the services that Fiinovation offers are as follows:
- Policy Design
- Programme/Initiative Design & Management
- CSR – CSO Partnership
- Need assessment/Baseline Study
- The Monitoring and Evaluation/Impact Assessment