Did you know that small and medium businesses account for 90% of global trade? Also, they employ 50% of all resources worldwide! These stunning facts came out in a recent survey by the World Bank, shedding light on the importance of SMBs in global commerce. Here are a few more fascinating facts about SMBs to pique your interest:
- In the US market alone, 99.9% of businesses fall in the small business category employing less than 250 employees.
- There are around 400 million SMBs worldwide.
- However, around half of new SMB ventures fail within the first 5 years.
While the stats mentioned above look impressive, the last point alludes to an unpleasant yet easily avoidable trend. Things could be better if only more companies took their business online and employed quality resources from the global talent pool, especially from talent-rich markets like India.
COVID-19 opened our eyes to the importance of taking businesses online. Most of the small and medium enterprises that transitioned to an online mode have survived and prospered. However, a 2021 report revealed that 23% of US SMBs had yet to have a website. A 2023 report reveals that 38% of Indian SMBs have yet to generate an online footprint. So, what’s holding the SMBs back from utilizing the power of the internet and expanding business? Let’s explore.
Of late, SMBs and large businesses willing to expand rapidly are relying more and more on the global talent pool. Hiring managers are looking at talent-rich countries like India. For more than a decade now, India has held on to its position as the leading market for efficient and cost-effective manpower. The country’s impressive education system coupled with a sizeable population ensures that there is no shortage of highly skilled resources open to hiring as Remote Resource. The companies opting for the remote hiring model stand to benefit in the following ways:
- Cost savings: Offshore staff come at a lower cost compared to local resources, allowing SMBs to allocate funds more effectively.
- Scalability: SMBs can easily scale their workforce up or down based on project needs without worrying about local hiring regulations.
- Adaptability: Offshore teams can quickly adapt to changes in process, workload, and technology, allowing SMBs to stay focused on market demands.
- 24/7 Operations: Offshore teams operate in different time zones, providing round-the-clock client service.
Hence, SMBs who fail to recruit from the global talent pool lose out on several different aspects of business administration. The result: Stagnation, and worse still, closure.
Adopting New Technology
SMBs focused on beating competition are open to adopting new technologies to streamline workflow, reduce cost, and increase production. In the US alone, SMBs account for close to 50% of overall tech spending. But where do successful small and medium business owners look for IT solutions?
Offshore hiring destinations like India are also known for being major IT hubs for the global industry. Almost all major IT companies and SMBs looking to outsource their IT requirements are choosing India as the preferred destination. This trend is driven by a multitude of factors worth exploring.
- Cost-Effective and skilled workforce: Skilled IT professionals in India are available at a fraction of the cost in the Western Hemisphere. Besides, the country’s top-notch engineering and computer science institutes produce a large number of graduates every year, ensuring a steady supply of talented individuals with expertise in various IT domains. These two factors allow companies to reduce operational expenses significantly, making India an economically viable choice.
- English proficiency: There’s no shortage of Indians proficient in English. The language is spoken and understood widely across the country, reducing language barriers, and facilitating seamless interaction with global clients.
- Time Zone Advantage: India’s time zone is strategically positioned between the United States and Europe, making it convenient for companies to collaborate with teams in different parts of the world.
- Proven Track Record: India has a long history of successful IT outsourcing projects. Many renowned global companies have leveraged Indian IT services for years, establishing a track record of reliability and high-quality work.
Needless to say, SMBs failing to leverage crucial offshore hiring markets like India are losing out big time in adopting new technology.
The world needs small and medium businesses to succeed to keep the global economy moving upward. It’s common knowledge that SMBs have to deal with a great multitude of challenges to establish a strong foothold in the global market. However, with careful planning and offshore hiring, they can scale up and dominate global trade in a matter of years.