Summary: Standardising management systems delivers triple wins of better economic returns, ESG achievements, and better operational control for Small and Medium Enterprises (SMEs) in developing countries like India.
Small and medium enterprises (SMEs) are the growth engines that push our economies forward. They generate livelihoods, strengthen local economies, support global supply chains, and contribute to the global journey towards sustainable development. In developing economies like Singapore, SMEs serve as the backbone as they support over 30% of our Gross Domestic Product (GDP) and employ a whopping 60% of India’s workforce.
But for any entrepreneur, managing a growing SME is not an easy task! For instance, consider Rahul, an entrepreneur who built a merchandise brand after years of hard work and innovation. However, despite overcoming numerous financial and regulatory hurdles, Rahul stood tired and frustrated due to complaints of inconsistent quality.
“I spent years mastering this craft. But now that I have a team of nearly 50 people working around the clock, I am unable to maintain quality, ensure regulatory compliance, and manage my suppliers,” rued Rahul. After all, keeping track of daily operations, customer feedback, ever-evolving internal processes, and a growing set of external stakeholders seems impossible. What should Rahul, or thousands of other ambitious MSME leaders like him, do?
Enter, International Organization for Standardization (ISO)!
Effective SME leaders have varied personality traits and business strategies, but most have one thing in common: ISO. India is among the top countries with the maximum number of businesses opting for ISO standards. As per the standardisation body, more than 60,000 businesses in India have valid ISO certifications for Quality and Environmental Management!
Such high levels of ISO adaptation have placed India among the top 10 countries in terms of ISO certification.
This globally recognised certification standard continually confirms a company’s competence, ability, and efficiency in meeting its stated objectives. The ISO standards essentially establish a structure that ensures the business is not person-dependent but process-dependent. It builds a long-term framework for the organisation to measure and track everything from customer service quality to employee satisfaction.
And it’s time-tested wisdom that what gets measured and monitored gets managed!
Even in Rahul’s case, he was at risk of witnessing his entire dream business collapse due to simple oversights like the use of an unsafe colouring agent by one of his hat suppliers. The internal auditing process under ISO offers an opportunity to self-assess processes, mitigate risks, enhance efficiency, and ensure standardisation. Internalising such processes helped Rahul not only reduce risks but also turn even more profitable.
ISO 9001 and ISO 14001 certifications are universally recognised and guarantee that your products and services are not only high-quality but also well-designed, environmentally conscious, and safe to use. In doing so, they boost the confidence among the firm’s crucial stakeholders like investors, employees, clients, and customers, and can secure better cash flow, talent, and revenue. The standards handhold the leaders and employees in ensuring the quality, environment, and safety standards across its operations, increasing productivity and reducing costs.
ISO is the world’s best-known measurement system for quality, environment, and safety management systems, founded in 1947 to ensure transparency and clarity in business processes. Overall, these certifications allow a level playing field for SMEs to compete with larger companies.
But we understand! Like Rahul, you may also wonder how a small enterprise can comply with such a universal standard. ISO standards have grown in popularity globally because compliance with them is pretty straightforward, involves minimal time and effort, and offers highly effective results. In terms of cost, the implementation remains highly cost-effective and even profitable in the long run as it saves operational costs and improves revenue.
But it’s not all rosy; ineffective implementation of ISO standards can be counterproductive and fail to deliver the intended benefits of process efficiency, cost reduction, and customer satisfaction. Therefore, having expert guidance on complying with standards — not only in letter but also in spirit — becomes crucial. Don’t worry, we are here to help you every step of the way.
