Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 was a huge initiative taken by the Government to help SME’s become more innovative, efficient, and competitive. Government is spending huge proportion on money to boost growth in SME’s.
However, apart from a developmental push by Government, there can be other ways they can benefit.
The strategy involves the Private companies which can help SME’s , if not directly, in an indirect way.
Though there may be ways where they can help SME’s financially or through Logistic collaboration, I would focus on how they can help each other by marketing collaboration.
Famous Private companies can enter into collaborations with SME’s which provide complementary services.
For example, a telecom service provider sponsoring a marathon can also promote a particular SME, which does not compete with it in anyway. Promotion may be something as simple as putting up a logo or something as big as giving the contract of running shoes of the guest runners to SME’s.
The same goes for sharing of advertisement time. A big brand can share the broadcast time. This will be positive for the brand image and SME’s can get a share of awareness among people. Company management should carefully analyse the strategy regarding which industry SME should they collaborate with and through what way can they help.
Apart from the already mentioned advertisement sharing, there is another way SME’s can be helped in a large way. Unlike the advertising collaboration above, the next is going to be product collaboration. We come across various offers and schemes in case of every type of goods. Such a partnership could be useful where, an established brand may partner with an SME and sell their product with their own product at a lesser rate. This can be done may be for small region such as a particular city that the SME targets. This can be availed for some time, only till consumers get to know about the product and awareness is created. The discounted cost could be shared by the company and the SME.
Another approach could be giving a package involving branded goods and SME goods or services. The price of the entire package may be same as the individual summation of goods, but people may still prefer to buy that due to sheer ease and convenience.
There is probability that some brands may not be ready for this. Government can help in this direction by making the task of “Helping SME’s” count as a Corporate Social Responsibility. They may be asked to spend some very small percentage of the profits on helping them.
Last but certainly a very beneficial step on the part of consultancies could be giving consulting services at lesser costs to SME’s. In return, Government can provide benefits by allotting Special Economic Zones, relaxing numerous other restrictions and duties, till the extent possible.Hence, SME’s can be given a boost by various mechanisms given good government policies and co-operation by the Companies.