Financial discipline must for small and medium enterprises

Chennai: Financial discipline determines profitability of small and medium enterprises (SMEs) and is the key driver of their growth. According to a survey done by market research firm CRISIL along with American Express and JetAirways, 84 per cent of respondents believe financial discipline can help companies tackle slower business growth in a slackened economic environment.

With financial discipline, companies find it possible to optimise operational expenditure without impinging on business competitiveness. The survey also revealed that SMEs today look at their businesses from a long-term perspective and put in place efficient financial management systems and processes.