PUNE: Big companies are the best option for funding SMEs in the present “challenging”
finance
environment, Pradeep Bhargava, the newly appointed
MCCIA
president, has said.
“Last two years have vitiated the finance environment with increasing non-performing assets. Banks won’t listen to chambers or anyone for that matter. We have seen that the big guys have taken away all the money, leaving small guys in a crunch situation,” he said.
The
Mahratta Chambers
of Commerce, Industries and Agriculture (MCCIA) president said large corporates show huge cash balances in their balance sheets and all they do is put that money in treasury and get a 7% return, whereas the small and medium enterprises (SMEs) have to wait, having borrowed money at 12-13%.
“Look at the balance sheet of large companies, they have thousands of crores of rupees in their cash and cash equivalents but you see their payables (they are huge)...The big guys should instead pay their vendors on time. The big companies can be big banks to SMEs,” he added.
Bhargava said small and big industry players must introspect. “While the chambers will help in advocacy, upgrading skill of those industries who need it, it will also be the responsibility of these firms to run their businesses in a sustainable manner,” he said, adding, “While we want to continue to do advocacy, we want to continue to help organizations increase capacities and quality.”
Sethji culture
Bhargava said when organizations pay their workforce fairly and treat them well, they will be repaid multiple times. “The organizations have to realize that the ‘sethji’ culture will no longer work. Today’s generation demands and also deserves respect,” he added.
Bhargava said the least firms can do is pay minimum wages to their contractual workers. “The contractual workers get the short end of the stick. We also need to introspect if we are being fair and ethical in dealing with the workforce and customers,” he added.
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