SMEs (Small & Medium business Enterprise)
always have limited resources (Time, People &
finance) & are highly vulnerable to changes
in macro economic conditions. Many times they
have problems in seeking 'reliable' guidance.
Sometimes, it is also their 'ego' that
stops them seeking outside help! However, every
SME wants to grow & deploy various business
many years, I have been associated with SMEs in
a role of Consultant or as a faculty
for Executive education. The past one year,
as a part of SME research, I started compiling
success factors of SMEs in variety of business
What I found was very interesting. I am sharing
herewith some of the key findings of this research.
of business( 70%) is likely to come from
recommendations and referrals by existing
clients and contacts.
all (>90%) of SMEs experienced recommendation
from existing clients as one of the most
important source of new business.
networking was actively pursued by 80%
15% found, the traditional contact methods
like cold calls , e-mail introduction,
postal contact to be effective. These
methods were supplementary to the other
of professional bodies, trade associations
& networking events were actively
pursued by 65% SMEs for; business development
leads & keeping abreast of the 'developments'
in the market.
is progressively being used to educate
potential clients & communicating
with present clients on the developments
in the organisation.
print advertising was successful for only
15%, with direct mail and on-line advertising
effective for only 7% of businesses each.
(high cost and diffused targeting).
I studied these results in different ways, it
became obvious that the findings will also be
of use to other business structures. The results
also suggest, best way to get business is talk
to present clients, do a lot of networking &
theres no substitute for a face to face