A lot has been written and said about how major Indian companies stopped worrying and started to love globalization. But far less attention has been paid to the way that small and medium enterprises (SMEs) have grown and prospered in recent years.
If anything, it is the SMEs that have had the tougher journey. Ten years ago, large swathes of the SME sector was in deep crisis. Today, on the other hand, Indian small companies are thriving and are being wooed by banks and investors.
There seems to have been a surprise factor in the SME resurgence—innovation. The National Knowledge Commission, in a new study, has reportedly said that while innovation intensity (or the percentage of revenues derived from products and services that are less than three years old) is growing across the universe of Indian companies, it is the SMEs that are showing the fastest rise in innovation intensity. Innovation is not the preserve of the big boys.