To be eligible for the India SME 100 ranking, an enterprise should be an entity engaged in an economic activity, with a legal form i.e. registered as a business either with an Udyog Aadhaar or registered with the Local SSI / MSME directorate or with a free trade / industrial zone / export zone in India.
The enterprise must be a for-profit business.
The enterprise must be in existence in India for a minimum period of 2 years at the time of application.
The enterprise must disclose audited financial statements for the past 2 years for the purpose of screening and follow-up application.
Once shortlisted for evaluation, the enterprise must participate in the process of discussions, interviews, site visits, etc.
Must furnish supporting details as and when required.
Nominees are evaluated 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.
a. Growth performance :
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.
b. Financial Soundness :
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.
a. Innovation :
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.
b. People Capital :
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.
c. International Orientation :
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.
d. Corporate Excellence :
Includes the following components:
Quality and Customer Service
Environment & Local Society
Scoring is assigned by the scoring system, on the information received in the Nomination Form, supervised by the evaluators, based on the performance of the Nominee in each of the parameters.Thereafter the individual scoring is aggregated to arrive at category level composite score, which is also interpolated on the overall performance of the SME within the Sector and with its peers.
At this stage the scores are verified on a random basis with the evaluators choosing a 5% of the nominees for the random document verification and full diligence check to extract a scoring sheet with the nominees ranked as per their scores.