A strong entrepreneurial sector can significantly boost economic growth of a country. Therefore, the focus for enterprises, including new ones, should be on improving business operations, scaling sustainable businesses, adopting new technologies and continuous innovation so that they can expand, and thereby create employment and wealth.
The CII-KPMG report titled “Entrepreneurship, Growth and Opportunities” provides valuable insights for entrepreneurs to build scalable businesses and leverage growth opportunities. The report covers three aspects that emerge in the current business scenario, namely, “Scalability”, “Innovation” and “Digitisation”, and also illustrates some of the challenges that businesses and entrepreneurs are facing today.
Profits are dependent on efficient operations of an enterprise as well as its capability to scale up successfully. Thus, the initial focus of a business should be on capacity building practices, i.e. improving short term critical business processes with the objective of building excellence at every stage.
The second focus should be on the continuous improvement of daily activities, such as providing employees with basic training methods to develop problem solving skills along with creation of daily management teams, responsible for daily activities and capable of taking corrective actions.
However, the strategic focus of the business should be on long term growth of the enterprise and to achieve long term results, managing growth is essential. Managing growth critically depends on managing people involved in the business. Thus, entrepreneurs need to align their strategies and focus on their people priorities.
Organizations should work on building a people-friendly work culture and design, encouraging and acquiring new talent along with capability development and performance management that can help organizations develop into mature organizations.
Innovation is one of the critical pillars that supports the success of entrepreneurs as well as small and medium businesses. Today, innovation has become an essential part of every organization’s growth journey. It also enables a business to increase its customer base and enhance revenues, and can also contribute to increased profitability. For businesses to become successful, there is need for constant innovation across all fronts – products, operations, manpower management, production and marketing.
Entrepreneurs and MSMEs have their own unique approaches to innovation. The breakdown of the entire process into several components is explained in the figure below