India is considered a bright spot in the gloomy, global economic scenario of today. A closer look at the performance of the Indian economy in the last few years will reveal that, as an economy, we are banking upon the Micro, Small and Medium Enterprises (MSME) sector and the start-up community to push the frontier of the nation's growth.
In recent years, while the Indian economy has been growing at over 6%, the production from the MSME sector has been growing at over 11% between 2002-2003 and 2007-2008. Small and Medium Enterprises (SMEs) play a major role in most economies, particularly in developing countries. Formal SMEs contribute up to 60% of total employment and up to 40% of national income in emerging economies.
As a career
The SME banking sector has evolved tremendously in the past decades. It is not just limited to its basic role of lending money and taking deposits — it also serves a large social purpose. A highly evolved booming as well as challenging sector requires upbeat and enthusiastic workers with strong interpersonal skills. The financial industry employs different types of bankers, including personal, commercial, and investment bankers. While the roles and responsibilities of these bankers may differ, they must all serve the financial needs of their clients.
SMEs bankers may work one-on-one with clients, opening small business accounts and overseeing financial transactions such as sending money orders and handling deposits. Commercial bankers process loans to prospective entrepreneurs, while investment bankers connect financiers with possible investment opportunities. Overtime and travel are often involved in these jobs, especially for investment bankers.
The promotion prospects and job satisfaction are higher with small companies. You aren't a small fish in a big pond, so if you perform well you will be noticed. On the other hand, if you perform badly, there will be nowhere to hide. The job will give you early responsibility, the opportunity to work on your own initiative, and to work closely with other people, including the senior management.
The job will offer you the flexibility to get involved in a number of different tasks and functions: job roles are often less rigidly defined. An added advantage is the feeling that you are making a real contribution to the business, seeing your ideas implemented from start to finish.
Qualities
SMEs require graduates who are practical, flexible, quick to learn, and willing to ‘muck in’ without expecting special treatment just because they are graduates. Most important is the ability to learn things quickly but informally, learning by doing. The aspirant must be a practical decision-maker with basic knowledge of finance, marketing and law, one who can work well under pressure with minimal supervision.
Qualification
A career as an SMEs banker requires a bachelor’s degree in finance, accounting or a related field such as ratio analysis, statistics, economics, calculus, financial statement analysis and risk assessment. While in high school, it is important to take courses in math and business to prepare for a career in banking. Students should also begin to familiarise themselves with computer software programmes. Candidates could also pursue a postgraduate diploma in banking and finance for professional and practical knowledge of these sectors.
SMEs bankers can work in a variety of fields. The plethora of opportunities is reflected in the salary range - ₹8 lakh to 10 lakh per annum depending upon the level of experience, type of industry and location.
The author is the Director of TKWs Institute of Banking and Finance.
