The shape of small manufacturers is tuned by the weight of big giants. The truth comes either as a contract manufacturers or as suppliers to big retail house, the process is good in terms of short term financial gains but no long term business sense. The focus will always be Cost-leadership to maximize bottom line. The presence of low entry barriers will make the chaos worst and will lead the SMEs business to self destruction which will end up either as shut down or sold out if lucky.

Even no identity and vision creates block for investment from financial institutions and banks. On the other hand the loan availability does not ensure the business acquisition and sustainability. The real essence lies in management of the loan taken from institution. The lack of modern management skills and silo mentality of traditions business blocks the working capital in production with no money left for market acquisition. The need of strategic direction is required at all level.

An initiative by Sylloge to work as a full-fledged marketing department for SMEs might give SMEs a way to strategize for long term parallel to short term financials. Mr. Siddhartha Bharadwaj, a 27 year dynamic Syllogist-CEO (as they call themselves) has planned to work on low budget for SMEs to build competencies from production to marketing to distribution to consumer at all strategic level. Mr. Siddhartha Bharadwaj explained Sylloge as a strategic driver for SMEs to boost the business in financial terms. He said that they work from strategic to ground level with minimum marketing budget and charge only once the client gets the additional revenue through them. Sylloge is currently working with 4-5 brands in hand (names not disclosed) and has vision to make them big in the coming time.

Companies like Sylloge are the building blocks of SMEs that work initially to build the business and them charge them. Some time business can also be defined as -is to grow its clients

 

http://management.sulekha.com/blog/post/2008/08/strategic-smes-business-sylloge-way.htm