Date:05/01/2009 URL: http://www.thehindubusinessline.com/2009/01/05/stories/2009010550571300.htm

Back ‘SMEs need to focus on customers’

Our Correspondent

Madurai, Jan. 4 Small and medium enterprises (SMEs) need to be customer-centric in their approach to overcome the present economic turmoil , said Dr Bala V. Balachandran, Distinguished Professor at JL Kellog School of Management, US, here.

Addressing the Young Entrepreneur School of the Tamilnadu Chamber ofCommerce and Industry, , he said the entrepreneurs should distinguish between the customers based on the services rendered to them as they impact profits and costs. Servicing cost is a factor to be reckoned with.

. If the variable costs were more than 50 per cent, entrepreneurs would be well advised to concentrate on costs and if it were less than 50percent, concentration should be more on sales, he suggested. He said if India emerges as the third largest economy in the world as portrayed, it would be not because of politicians or bureaucrats but certainly due to the small and medium enterprises.