Malaysian small- and medium-sized businesses (SMEs) believe that the expensive brand investment costs prevent them from expanding their operations, according to a survey.
The BIZSPHERE Brand & Marketing Group conducted that poll. It found that 53 per cent of respondents lacks the necessary funding for brand and marketing campaigns, which is the most difficult internal challenge. Branding communication served as the as top external challenge for 52 per cent of SMEs.
The survey based its findings from an online poll of 262 respondents between Oct. 25 and Nov. 22, 2017. Yap Keng Teck, BIZSPHERE managing consultant, attributed the perception of high costs to poor strategic brand planning among SMEs. Hence, many enterprises lack funds for expansion, according to Yap. He advised companies to choose the most appropriate marketing tools for them, instead of imitating their competitors’ strategies.
Many SMEs can achieve their goal of taking their business to greater heights by applying for a government funding grant. Those who plan to expand in India will find it easier to do so in the future, due to an agreement between SME Corp and India’s National Small Industries Corp (NSIC).
SME Corp’s memorandum of understanding (MOU) with the NSIC will help Malaysian firms to take advantage of potential business ventures at home and in India. In exchange, SME Corp CEO Datuk Hafsah Hashim said that Malaysia may serve as a “regional hub for entering ASEAN markets” for Indian companies.
The MOU will be beneficial for Malaysian MSEs, but companies should know that there are other ways for growing their business. An SME Corp grant, for instance, serves as one example. Yap said that only a handful of local SMEs has participated in funding support and assistance programmes by government agencies and trade associations.
Malaysian SMEs have many options to resolve key internal and external challenges for business expansion. How do you plan to expand your brand in 2018?