Under the Patronage of
Vice-President and Prime Minister of the UAE and Ruler of Dubai
The majority of businesses around the world consists of small and medium enterprises (SMEs). These businesses are considered significant contributors when it comes to employment opportunities and economic development.
According to the World Bank, SMEs represent approximately 90% of businesses and over 50% of employment globally. It is also estimated that by 2030, the increasing global workforce will require 600 million jobs, making the expansion of SMEs a top priority for governments of different countries.
For SMEs to be successful in growing their business, there are 5 crucial areas that SMEs should focus on:
Providing great customer experience can pave the way for more opportunities for SMEs. In truth, there are customers who prefer to get products or services from small enterprises instead of big corporate stores because of the more personalised approach that such businesses provide. Creating effective business strategies to increase customer satisfaction does not only increase business profits but also enhance the customers’ trust and loyalty to the business. In formulating approaches, business owners must consider how to acquire new customers as well as retain the existing ones.
SMEs must ensure that they have sufficient funds to avoid disruption of supply. Thus, partnership with investors and obtaining external capital can significantly help SMEs. Businesses can get financing from banks, non-bank financial companies (NBFCs) as well as microfinance institutions (MFIs). Equity funding is also getting increasingly popular as SMEs are grasping the advantages of working with investment partners that can assist them in accelerating their progress.
Diversification is a key growth strategy for small and medium businesses. For SMEs focusing on long-term growth, it is essential to diversify into various products, markets, and industries. This strategy will help in boosting revenues but minimizing risks that are related with economic uncertainties. Although diversification also holds substantial risks, systematic planning and execution can protect your business during downturn and will provide a wider exposure to much safer markets.
SMEs must have a clear-cut marketing strategy. During this time where preventive and safety measures are being implemented due to the Coronavirus pandemic, including the temporary closure of physical stores and offices, digital or online marketing is one of the most effective and reliable marketing strategies that SMEs need to focus on to continuously reach out to their customers and grow their business despite the crisis.
Digital marketing schemes such as SEO, text/display ads, blogging, and social media marketing are generally more cost effective compared to traditional marketing mediums. Business must ensure that generated leads must have a strict follow-up procedure to get higher conversion rates. SMEs also need to boost their online presence by having a well-designed, optimised, and user-friendly website.
There are several regulations and approvals that SMEs need to follow and adhere to while operating a business. Sometimes, these regulations change and new policies are implemented. Thus, business owners need to be updated with all the regulations that affect their industry. They must also possess competent liaison skills when dealing with different government authorities.