Small food manufacturing enterprises in India encounter various hurdles when entering the B2B market to offer food ingredients. Despite their zeal and willingness to invest, they frequently face various challenges that impede their success in competing with established organisations. Here are some of the main challenges
Limited Cash Flow
Limited cash flow makes it difficult to invest in crucial areas like marketing, product development, and operations expansion
Price Competition
Economies of scale make it difficult to compete with established companies’ cheap prices
Food Technology Knowledge
Lack of understanding in food technology can prevent food SMEs from expanding into products that require hidden ingredients or additives. Without proper technical assistance, they may encounter quality issues and struggle to compete with larger players.
Limited Brand Recognition
Limited marketing budgets and resources might hinder brand recognition and client acquisition.