The rise of India and strong growth for the Chinese consumer market will be two major businessfactors in 2007, according to a survey of 1,200 leaders of small- and mid-sized enterprises (SME)
in Asia commissioned by UPS.There was wide agreement that China will surpass the United States as the world’s largestconsumer economy in 10 years or less, but many Asian business executives are currently more excitedabout the growth of India, this year’s UPS Asia Business Monitor found.
“These findings are significant because these small business leaders on the ground in manyAsian economies say that China’s consumer market is growing faster than some leading researchersproject,” said Alan Gershenhorn, president of UPS International.
More than half (57%) said that China and the USA would reach parity within 10 years, with 20%expecting the gap to close within five years. Asia SME leaders seemed equally divided on whetherChina was a boost, or a boost and a threat, and many (38%) felt they could not compete with Chinesecompanies in terms of low labour and production costs.
In contrast, SME leaders across Asia expressed a desire to capitalize on India’s rapid growthby leveraging its continued rise as a manufacturing base (30%) and outsourcing there (25%). In linewith this growth, SME leaders also expressed a desire to become an outsourcing destination forIndia (20%), and an exporter of raw materials to India for manufacturing (19%).
Small business leaders in India were very optimistic, with 89% predicting greater economicprospects for their businesses in the year ahead, and 83% forecasting higher US-India trade thisyear.
The major business concerns in the region are a lack of innovation, the availability of aqualified workforce and access to funding and working capital.
