Staff Reporter

SALEM: The small and medium enterprises (SME) should adopt professional approach, which would put them in the path of sustainable growth, Chairman and Managing Director, R K SWAMY BBDO Private Limited, Srinivasan K. Swamy has said.

Inaugurating the seminar on SMEs – Managing for Growth organised by the Salem Chapter of Madras Management Association (MMA) here on Wednesday, Mr. Swamy has said the country, which is emerging as one of the largest economies in the world, offers tremendous growth potential for the micro, small and medium enterprises. The government was paying more attention for the growth of SMEs, as they were contributing significantly for the development of the country.

A majority of the SMEs in the country are run as family business. Of them, only 30 percent of the businesses survive the transition from the founder to the second generation and the third generation get only 10 percent. This situation should change, he said.

The entrepreneurs should scale up the size of the business quickly and adopt professionalism. The ownership and management should be kept separate. Entrepreneurs’ should give more importance to competence. A proper delegation of power and freedom to employees would ensure effective functioning of the SMEs, he said.

Later, he installed Paavai Educational Institutions Chairman N.V. Natarajan as the new chairman of the Salem Chapter and his team of office-bearers.

The Institute of Internal Auditors were the knowledge partner for the seminar.