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Dun & Bradstreet - Oriental Bank of Commerce SME Cluster Series 2014 : Hyderabad

 
 

 

Dun & Bradstreet India (D&B India), in association with British Airways reinforces its commitment towards the development of small and medium enterprises (SMEs) with the launch of its cluster-based report series, “D&B - British Airways SME Cluster Series 2014: Hyderabad”. This report focuses on SMEs from IT-ITeS and Pharmaceutical sectors in the Hyderabad region and offers insights on the status and scenario of the SMEs operating in the Hyderabad cluster, in terms of their financing requirements and preferences, export challenges, outlook on growth prospects and various other parameters.

Some of the key findings from our study are as under:-

  • About 57% of the SMEs in the IT-ITeS sector expect industry to record moderate y-o-y growth of 5-10% during FY15. Among the Pharma SMEs, 46% expect industry growth of 5-10% during FY15.
  • Procuring funds does not seem to be a major challenge for the SMEs in Hyderabad. Nearly 41% of the respondents find it easy to procure finance.
  • Nearly 71% of the SMEs indicated that making collateral-free loans available to them will be the most important measure which can enhance funding to SMEs.
  • Around 42% of the SMEs estimate the share of their export revenue in total revenues to be in the range of 20-40% in FY14. Nearly 66% of the respondents indicated that collecting payments due is the biggest export related challenge faced by them.
  • SMEs in the Hyderabad cluster appear to be facing considerable issues while meeting their marketing objectives. Around 24% of the SMEs rated ‘Reaching out to target customers’ as ‘Difficult’.
  • Hyderabad was rated as ‘Reasonably Expensive’ by 55% of the respondents, in terms of cost of skilled labour, when compared with other competitive locations such as Chennai, Bengaluru and Mumbai.
  • Hiring people with specialised skills is the most critical human resource challenge faced by the SMEs in Hyderabad, with 36% of the respondents indicating this.
  • Around 58% of the respondents rated Hyderabad as a favourable destination for doing business, as compared to other competitive locations such as Chennai, Bengaluru and Mumbai.
  • Over 60% of the SMEs rated connectivity to roads and highways as Easy, and about 45% of the respondents rated access to ports and airports as Easy.
  • About 35% of the SMEs undertake 2-5 domestic business trips annually by airways, and around 29% of the SMEs undertake 2-5 international business trips annually.
  • Nearly half (i.e. 49%) of the SMEs allocate 3-5% of their companies’ total budgeted expenditure for their business airfare travel needs. Over the next one year, the SMEs plan to use the cheapest airline and reduce the number of staff travel, in order to manage their business travel costs.

The SME segment is expected to emerge as one of the key growth engines for the Indian economy. In its endeavour to aid the growth, D&B India will continue to keep track of the developments in the SME segment. We hope that this study will be a reliable and useful source of reference to the SMEs. We look forward to your comments and suggestions.

 

Pawan Bindal
Director
Dun & Bradstreet India