Small business financial advice that is clear, engaging and informative would support many more SMEs that are struggling to grow or even to survive. Surveys of small businesses by the Indian government, business insurance firms and banks, show that financial concerns are among the biggest barriers to a SME growth plan.
These surveys of SMEs showed that 44% considered the biggest barrier to growth to be the Indian tax system. 38% cited a lack of bank lending, 36% too much ‘red tape’ with increasing costs for services and products, late payments and cash flow also being seen as significant. Many small firms are struggling to access finance in the current tough trading conditions. This snapshot of the very real and pressing financial concerns of small businesses strongly indicates that there is a need for good small business advice in this area. The small business community needs access to SME news, tips and advice about the financial services that are available to them for support. Such advice should be easily accessible, both in terms of where it is, and how it is presented. It should avoid jargon, be easily understandable and be available in small bite sized pieces from a range of sources such as chartered accountants, academics, government, business consultants, world business leaders, banks, business organisations and financial institutions. It should cover a wide range of topics that affect many business sectors. For example, looking at how accountants can add value, alternative finance such as equity investment, how the Enterprise Bill can reduce late payment, alternative payment options including mobile apps, and how to diversify sources of funding.
A wide range of financial advice, focused on key topics in bite-sized chunks, is available at SME for Growth. View our small business financial advice by clicking on the ‘Finance’ tab at http://smebharat.in