A&A Business Consulting, an SME consulting firm, released a report which found that 47 percent of Indian SMEs highlighted sales as a major challenge. The company carried out a nationwide SME survey of 0.08 million SMEs.
The report also read that 20 percent of SMEs are finding it difficult to manage working capital. This could be attributed to their inability to pay off short-term expenses or their assets being under utilised, the report added.
In fact, the survey also found that with the economy going through a low phase, liquidity crunch was a major growth deterrent. The survey also highlighted that 20 percent of SMEs are facing problems in retaining and getting good employees.
The survey also found that eight percent of SMEs are facing problems with branding and marketing which has adversely affected their ability to convert prospects into consumers. Moreover, the inability to attract the right talent could also be attributed to the lack of marketing and branding activities.
Another hurdle which the survey has found out is that, five percent of SMEs are facing issues in creating a profitable business model. Without making profits, SMEs downsize, which has resulted to unemployment issue in the country.