SMEs count gains, see 7.5% rise in turnover in 2 years

Small and medium enterprises (SMEs) remain optimistic about the domestic economy and expect their turnover to expand at 7.5% over the next 1-2 years, a report said.

According to a study by American Express and Jet Airways carried out in association with Crisil, a majority of the respondents see economic growth rebounding, albeit at a moderate pace.

"Around 69% of the respondents expect their turnover to expand at 7.5% over the next 1-2 years, with large and established SMEs anticipating a double-digit growth in the same period," the study noted.

The median growth expectation for India has been pencilled in at 7.9%, led by an expected revival in global markets and some improvement in domestic demand.

Moreover, 84% of the SMEs believe that financial discipline is the key to their success followed by working capital management (47%).

"SMEs in India are in an excellent position for expansion and, as indicated in the study, see financial discipline as an important factor to drive their growth," Saru Kaushal, Country Business Head, Global Corporate Payments, American Express, said.

"SMEs are optimistic and confident in managing their businesses," JetPrivilege Managing Director Manish Dureja said.