Just like there are MSMEs in India, there are small and medium-sized enterprises (SMEs) in Europe. They represent 99 per cent of all businesses in the European Union (EU). They employ about 100 million people, accounting for more than half of Europe’s GDP. There are many things that India can learn from SMEs of Europe, said Chairman of EBG Federation, Raman Sidhu.
Explaining the current scenario, Sidhu said, “It was a very critical period for micro-businesses post the demonetization and it will take some time to recover. It has taken years to build up. So let us concentrate at the moment on how the MSME sector that remains in India can be benefitted from collaborating, with taking technology transfers from European SMEs. Surprisingly, In Europe, on average, anything between 60 to 65 per cent of business is SME and in some countries, it can go up to 85 per cent. That is the extent of coverage of SMEs in Europe and the importance and influence that they exert on the economy.”
Speaking about Europe and India collaboration benefits, Sidhu explained, “It will translate into more advanced technology coming into the country. AI (Artificial Intelligence) will help streamline processes that are followed in these industries and sectors. Quality standards will have a major impact now.”
Bringing quality products on a consistent basis is very important for any company. From building a quality brand name to a long-term future, that’s what we all want to achieve. That would be one of the other benefits, he added.
“We would adopt through this collaborations technical or joint ventures and efficiency culture, which is very prevalent in Europe. it actually helps Europeans focus on optimization and Automation and further build on that. Europe has a very strong and abiding culture of proactive and Progressive research and development. This is yet another benefit that we can get through collaborations.” He further added.
Speaking on technology adaption, Sidhu maintained, “Technology adaptation is also a major area where India can work with European SMEs. There are multiple technologies that are somewhat outdated in Europe. These are not a second hand but these are technologies, which are still very relevant. Some of the Indian companies who have collaborated have found that to be the case. They have very easily and successfully adapted these technologies to their businesses. So there is still some sense and older technologies also have relevance.”
Sidhu shared his views and the lessons that India can learn from European SMEs at BW Emerging Conclave & Awards 2022.