India SME 100 Awards: Selection
SMEs would be selected on the basis of both financial and non-financial indicators. While the financial indicators of Growth Performance and Financial strength would be keenly evaluated, balanced emphasis would be give to the non-financial indicators covering Innovation, International Outlook, People Capital and Corporate Governance.
Growth performance refers to the growth of the SME over a period of 2 years. It includes:
• Growth in sales - i.e. change in total sales over the period
• Growth in business profit – i.e. change in total business profit over the period.
Financial Soundness indicates the current financial strength of the applicant SMEs based on a combination of various financial ratios including return ratios, liquidity and leverage ratios and operating efficiency ratios.
Non Financial Indicators
• Defined as a new way of doing something or "new products and services that are useful”. It may refer to incremental and emergent or radical and revolutionary changes in thinking, products, processes, or organizations.
• Refers to both, the process of doing something new and the output or result, arising from the innovative actions.
• Innovation may be linked to performance and growth through improvements in efficiency, productivity, quality, competitive positioning, market share, etc.
• Defined as the knowledge, skills, competencies, and attributes embodied in individuals that facilitate the creation of personal, social and economic well-being.
• In the business context, it includes the competencies and commitment of the people within an organization i.e. their skills, experience, potential and capacity.
• It can be a source of competitive advantage for organizations.
• International orientation includes the SMEs efforts to sell goods / services in the international market.
• Includes international outreach through joint ventures, alliances, distributorships, agency arrangements, etc.
Includes the following components:
• Quality and Customer Service
• Business Excellence
• Environment & Local Society