By: Avinash Barik, Assistant Editor, Asia Business Outlook
A wise man once said "The secret of change is to focus all your energy on building the new rather than fighting the old,”. In the case of small-scale industries, 2021 was all about adapting to the new normal caused by the covid-19 pandemic, while 2022 is all about preparing for the "never normal" in a world where global structure volatility causes constant change and disruption. The pandemic appears to be long way gone. The most recent Omicron strain has also slowed many SMEs' transition to living in an uncertain endemic. We must not forget that this era is also marked by significant social, economic, and environmental challenges brought about by global power struggles, climate change, and the arrival of Industry 4.0.
These rapid changes are expected to intensify rather than subside. As business today is confronted by the urgent need to adapt to a world of a constant disruption, it is crucial that they take the appropriate steps needed to drive innovation and re-invention in a new era of growth. “This begs the question on what do they need to develop a competitive advantage and build a sustainable, intelligent business operation and drive success?”
In this organized Ecosystem, No Industry does Business Alone
Beyond the initial disruption in every crisis, we find that opportunities lie ahead for businesses that press ahead. COVID-19 has demonstrated the importance of building an intelligent enterprise and establishing strong business networks, and it has also given companies the opportunities to do so. By collaborating with a diverse spectrum of trading partners, some SME’S have avoided costly disruptions. Tapping on their business networks has also enabled them to source alternative suppliers and pitch for new business opportunities abroad.
SME’S and their Tie-up’s with larger organization
As an example, if a small scale industry is dealing with appliances, it must collaborate closely with a contract manufacturer who relies on a packaging and parts supplier, who in turn relies on raw material suppliers. The finished goods are then shipped to distribution centers around the world, where they are distributed to distributors, retailers, or even directly to end customers. To pay for everything, these physical movements rely on a network of logistics service providers and carriers, as well as a financial network to pay for everything. A Formula such as this requires a collective effort and shared accountability among business partners to unlock new growth and innovation. This will in turn help businesses and economies to thrive. By leveraging their collective intelligence and applying past experiences to future decisions, all partners will ultimately help drive success across the board. Such networks are also a source of new connections and business opportunities for SME’s. In Addition, such networks are also a source of new connections and business opportunities for SMEs.
What else do SMEs need to be resilient?
In order to pursue their business transformation, SMEs would require technology partners and solutions that would allow them to collaborate with all parties in their supply chain, such as suppliers, logistics and service providers, asset operators, maintenance contractors, and so on. With proper technological infrastructure and a business network solution in place, SMEs will be able to gain unparalleled visibility across all processes in their supply chain, respond quickly to disruption by making micro-adjustments as needed, and thus build resiliency into their business. In fact, 61% of companies said they would like to see technology improve the process efficiency of their operations. In this new interconnected world, SMEs can leverage their network ecosystem to flexibly shift resources, production, and financial funds around the globe to take advantage of regulatory and location advantages, while also building supply chain resilience to respond quickly to disruption.
Where the SME's will land in the age of volatility and complexity
We are entering a volatile and complex era in which SMEs will continue to promote business ownership and entrepreneurial skills. In general, SMEs have created the most job opportunities in Asia, second only to agriculture, which employs more than half of the workforce. Pick any country in the Asia Pacific as an example, and we will find that SMEs end up playing an important role in their countries' overall social and economic well-being.
Investors Should be hopeful for Investing
Investors should look forward towards investing in small businesses not only helps countries reduce unemployment and increase self-employment, but it also assists large corporations in merging and expanding.
Today Asia is considered to be the largest market for the small to med sized industries. Small sized industries. Small industries, in my opinion, are important because they help to increase employment and economic development in India.It boosts national growth by increasing urban and rural development. There is no doubt that SME’s play an important role in assisting governments in expanding infrastructure and manufacturing, as well as reducing pollution, slums, poverty, and many development practices throughout Asia and the Pacific.