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ADVANTAGE SMALL - SMEs Set for Organic growth
Ramesh Shrestha
Aug 2009
Aug 2009
Page 1 of 3
Big is better --- and safer. Conventional wisdom tells us so. It follows that building a career in a big setup is better and safer. Therefore, we saw the initial rush of job seekers towards the government and its agencies and undertakings. The limitations there diverted them towards the large enterprises in the private sector. The only alternative to these were petty businesses --- largely shops and trading, with some petty assembly and intermediate processing thrown in.
Small scale industry was given some space in the overall scheme for industrialization and economic development. But the fetters placed upon it ensured that it never grew in scale, size or technology or in adopting modern management principles and processes. Consequently, employment in this sector remained unattractive, both qualitatively and quantitatively.
Forward Looking Sector
The turn of the century has seen much of this change. As the nation's economic policies matured over the past two decades, the paradigm for the small and medium enterprises (SME) has changed dramatically. This has also been supported by the vast opportunities thrown open by the expanding global trade. SME's are now transforming into a confident, energetic and forward looking sector. They are not daunted by scale or size, are willing to embrace modern technology and are open to adopting modern management principles and processes. The large number of names from the SME segment that have leapt to the forefront of public visibility and preference is testimony to the changing times for this sector.
What does this mean for job seekers and how should they evaluate the possibilities in the SME segment vis - a - vis the large enterprises? For one, the myth that big is better and safer has been shattered by the failure of some of the biggest enterprises worldwide. Closer home, in various circumstances, we have seen large enterprises break up into smaller units. Those that survive as large enterprises, and there are many indeed, function as monoliths where the individual has a limited role to play simply because it is considered too risky to allow the individual to take a pivotal role. Consequently, the system takes over and the individual is often reduced to a cog in the massive wheel which grinds at its own will and pace.
Out of Radar
Second, large enterprises by definition employ a large number of people at various levels and functions. Despite the best processes employed by them, it is not always possible to give fair and equal opportunities to all individuals. The struggle to remain “visible”, make a mark and gain access to the right opportunities at the right time is often unequal and sometimes even unfair. A mentor, “godfather” or right connections, the right “networking” and social circuits like bridge and golf or even plain sycophancy and “apple polishing” or seeking and giving undue, even unethical and immoral favours, are often made the ladder towards upwards mobility. This tends to leave many capable and deserving people out of the radar of the decision makers, leading to stagnation and frustration, without adversely affecting the monolith enterprise --- atleast not substantially or in the short term.
Third, the number and cost of employees in large enterprises are usually high. The slightest disturbance in the macro environment affects them directly. The sheer scale and size of such enterprises does not allow them the nimble flexibility required to adapt to the change in environment and therefore, the first response is to relook at costs. Human costs often become the first victims and we see a freeze on emoluments and bonuses, on hiring and confirmation and indeed, rightsizing --- a euphemism for throwing people out of jobs.
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