A recent survey of small and medium enterprises in the northern region, conducted by the Confederation of Indian Industry (northern region), has shown that companies are keen on seeking professional help in improving their competitiveness in the global environment.
The survey was carried out by CII to gauge the manufacturing capability of small and medium enterprises across the northern region and also to identify those factors that, companies in this sector feel, could affect their competitiveness both internally and policy wise.
An overwhelming 80 per cent of the companies interviewed in the survey were willing to seek professional help in improving their competitive capabilities.
The survey also found the SMEs more open minded and positive about innovation in enhancing their productivity.
Around 28 per cent of the respondent companies have gone in for certifications other than the ISO 9001:2000 such as ISO 14001, TS 16949 and ISO 18000, reflecting their concern for issues relating to environment protection, organisational safety and higher quality standards.
While around 36 per cent of the respondents have, in the recent past, taken more than four initiatives to be competitive, and 48 per cent of them have taken three to four such initiatives, only 16 per cent said that they had taken less than two initiatives in the areas of cost, energy, quality management, technology upgradation and human resource development.
This reflects an increasing trend among the SMEs to look within their own organisations to survive and be 'winners.'
The survey also found that around 75 per cent of the companies interviewed in the SME sector feel that their company is competitive. This is backed by the fact that 65 per cent of the companies also say that their business is increasing steadily. Only 8 per cent of the respondents reported a decline in business.
As a result of the present-day competitive environment and also the fading borders across countries, the survey discerned a marked shift in the respondents' perception of threat from competition. Around 48 per cent of the companies feel that they are also threatened by international competition, besides their domestic competitors.
In terms of the external environment, the greatest threat to competition, according to the respondents, has been attributed to the existing tax structure, followed by inadequate infrastructure and the Inspector Raj.
