There is no discussion or deliberation required on the importance or efficacy of branding and how it enables build competitive advantage. While the significance of the SME sector to India’s economic growth and prosperity is well established; the inherent benefits of branding is one area that Indian SMEs has not been able to leverage.

(1) Branding can help SMEs scale up faster. Many SMEs find it difficult to penetrate markets which features number of large players in the industry. However, with proper branding, things can become easier. SMEs that manage to position themselves as brands are often able to attract more customers. A strong brand image helps ignite talks amongst potential communities.

(2) Branding will help foster better business practices amongst Indian SMEs. The process of brand building will ensure that SMEs get into a mindset that facilitates fostering of best practices. Whether it is in terms of meeting quality benchmarks, or adopting sustainable business norms, or better waste management practices; the process of brand building will ensure that SMEs slowly but surely will get into adopting better business practices.

(3) Help go global: If Indian SMEs has to ‘Think Global, and Go Global’ branding is one aspect, they can just not ignore. Global partners will be confident and happy engaging with Indian SMEs who exhibit certain level of brand behavior. From an SME, one can become a multi-national company if SMEs choose to implement the appropriate branding strategy.

(4) Branding can help SMEs enhance efficiency and build competitiveness: A clear branding strategy helps employees understand vision & goals of the organization. It will enhance the motivation and job-security of the employees. Also, employees can puff their chest out and feel proud to be a member of their employers’ organization. All of this will surely have a positive impact on the efficiency of its manpower and thereby also help build SME competitiveness.

(5) Branding can help SMEs leverage the power of the Social media better: Needless to say, social media has changed the way businesses are conducted. Gone are the days when SME’s were constrained by resources and limited global reach. They can think big and make it big. They just need to leverage and capitalize on the power of social media. However, for Indian SMEs, before formulating the strategy for usage of social media, the SME must have a branding strategy in place and understand the nuances of building brands. It is only then that they will be able to leverage the power of the digital & social media well enough.

Yes, we all will agree that SMEs are too caught up with daily business operations. At the same time, they lack the capability and the urge to build brands. Many even feel that it’s probably a waste of money. But if we all believe that a robust branding strategy can empower SMEs even in as little as the 5 ways mentioned above; than should we not be asking ‘Can our government enable this?’

Pic courtesy: Forbes