Reasons small firms to do well in recession

28th August 2009

Smaller firms are best positioned to do well or "rather well" during the recession, and firms like small retail outlets, small manufacturing units, and small cooperatives are continuing to grow despite the difficult climate, it has been suggested.

According to recent industry survey, many people are shopping more locally as the recession ensues, sme’s and cooperatives pursuing their niche market and local strategy are doing extremely well.

The reasons why the Small firms do well despite all odds, and here are some of the probable reasons,
• Being Lean is always one of their priorities and they constantly revamp their strategies to be in tune with it.
• Being Flexible: The ability to be more flexible than larger competitors helps such companies as they can generally adapt to changing market trends more easily and cater for the particular needs of individual consumers.
• Cautious: They never go in for mad expansion based on market conditions. Unlike the corporate houses products, or firms grow at a frantic pace or start retail chains and then cut back during recession, the well run SME’s are always cautious.
• A Flat organization hierarchy is what is common in almost each successful SME. I don’t know how feasible it is to run Flat Hierarchies in large corporations, but if you have read THE WINNING by Jack Welch, it is indeed possible.
• The employees are much closer knit and they have a sense of ownership. I don’t know if there is a supporting study to prove that, but I seriously feel that employees in the SME’s actually love doing their jobs and in turn give their best.
• Debt Free: Good SME companies hate the word DEBT. This is one reason you will notice all SME CEO’s mentioning when asked “What makes you work”. Well run SME account books have null or very little of debt.

The trends set by these firm’s show they are able adapt to the current situation and are prospering in the current scenario.

How Eco Ventures India can help?
Eco Ventures India can provide professional expertise in tackling the challenges of a growing business. Besides we are also the first choice for companies and early stage start-ups looking for Eco friendly projects and for businesses looking for carbon management consultancy services.

Do contact Eco Ventures India at: ecoventures@ymail.com, for any of your organizational queries.