Indian SMEs see better business prospects in 2005: UPS survey

The world's largest package delivery company USP recently announced the findings of its first annual Asia Business Monitor (ABM) survey, a study of competitiveness issues faced by Asia's small and medium sized enterprises (SMEs). Among other findings, Indian SMEs have the most positive outlook in the region for both economic growth and their business prospects in 2005.

Across the region, the UPS ABM found Asia's SMEs primed for growth and optimism for 2005. However, major concerns darken their horizons, with cash flow worries and dissatisfaction with their credit providers looming, and China's emergence as the region's most competitive economy posing both an opportunity and a threat.

Regionally, 49 per cent of SMEs leaders expect economic growth in 2005 and 65 per cent expect their businesses to do better in 2005. The outlook for India is the region's best, with 78 per cent of Indian SMEs expecting economic growth in their own country and 87 per cent expecting their businesses to grow in 2005. When asked what business issues keep them up at night, 36 per cent of Indian SMEs cited government issues, the highest ranking of any market in the Asia Pacific. Regionally, government issues were a concern to 19 per cent of all SMEs, second only to cash flow, a worry to 23 per cent SMEs leaders that was caused in part by dissatisfaction with Asia's credit and finance providers.

"The UPS ABM was conducted to provide UPS and our customers with a better understanding of the unique needs and concerns of the region's SMEs," said Mr Thomas Mathew, managing director, UPS Jetair Express."SMEs are essential to Asia's economy because they are key drivers of growth, productivity and innovation."

The study surveyed more than 1200 decision makers from Asian SMEs between August 16 and September 28, 2004.