Financial Management Guide For SMEs/MSMEs: Tips To Drive Profitability

There is nothing in saying that SMEs/MSMEs (Medium, Small & Micro-Enterprises) are the most significant pillar for a country’s economy to be lied on. They not only contribute over 95% of the businesses in OECD Nations whose members have a considerable role in global trade, but they are also responsible for creating great job opportunities in countries around the world. Irrespective of their immense significance in a country’s economy, many small businesses are still struggling to find financial support & are unable to meet their financial goals due to the liquidity crisis. Bank & FI’s rigid policies towards lending to SMEs, and the longer & strict process of evaluating creditworthiness can be considered as one of the contributory factors towards this situation, the global impacts of Covid-19 are also making this situation even worse. Several reports are showing SMEs/MSMEs' negative growth for FY 2020-21, making it clear that this sector has been severely injured during a pandemic and needs to rethink its strategies towards smarter & economical ways of conducting business processes. Although digitization can be a silver lining for SMEs/MSMEs, they have a lack of technological knowledge & awareness. In this blog, we have discussed a few ways that can help SMEs/MSMEs to manage their finances better and run their business activities uninterruptedly.