Reasons behind the SME Management sickness and how Bramma can tackle this issue…

A study reveals that, the no of sick units are very high in Kerala when compared with the national scenario. 35% of the Kerala SMEs are in a danger situation, Either they have closed or facing the challenge of closing. Apart from the financial concerns SMEs have been facing challenges due to the managerial inefficiency

Basic management challenges of SMEs

1) Lack of Market Demand

It is high time to measure the actual demand of the product. Most of the entrepreneurs have started their business from their early age. They have not measuring the actual product demand with the current market scenario. According to the SIDBI report 71.65 of the sick units have suffering this problem. There is no point of selling unwanted products if it does not serve any purpose to the customer requirement.

Bramma intervention: Demand forecasting through a proper market study. It would help the businessman to think whether to stay, diversify or to shift.

2) Poor marketing strategies-

SIDBI report has revealed that 43% of sick units have marketing problem. The most of the entrepreneurs are not much aware of the importance of marketing strategies or they are in a wrong way of making the marketing strategy. In this competing scenario it is very important to make a proper awareness about a product or service to the customer. Don’t make superstitious strategy that could give back nothing except some money and time loss.

Bramma interventions: Development of well defined marketing strategies through market mapping, 6 P analysis, competitor analysis

3) Poor Management efficiency

This challenge is very well evident in the SMEs operation. Most of the Entrepreneurs don’t have the required management skill, because they might evolve as an entrepreneur only through his experience and hard work. Thee won’t feel that limitations until to reach a certain point. After reaching a certain point they could not able to move forward in a smooth because of the lack of managerial skills.

Bramma Interventions: Bramma uses the ADDIE process to logically operate the project. At each and every phase Bramma goes through the 7S Framework methodology to find solutions for the issues. This approach will help the entrepreneurs to overcome the management problems

4) Don’t have right staff

This is another common Phenomenon that exists among SMEs. Because of the poor staff selection they have to suffer lots of monitory and non monitory losses. This could affect the business in a very bad way. Sometimes, existing staffs feel de-motivated because of poor dealing by the top management.

Bramma interventions: Proper recruitment which include recruitment coordination and interview, selection and their training. We are selecting the candidates through Bramma right choice model (Energy, energize. Execution and edge)

5) Poor feasibility studies

This phenomenon also is very common among SMEs entrepreneurs. They will not do a proper market feasibility study before starting a new business. As a result they have to suffer both money and time losses. It is very essential to do a proper market feasibility study before starting a new business

Bramma interventions: Bramma have well organized Market research team for doing the market feasibility study

Vinu Narayanan

Asst Manager