Govt's five major schemes push for SME growth

Micro small and medium-sized enterprises (MSMEs) play a vital role in the growth of a nation. It is often said that small units are highly responsible for driving innovation and competition in various economies. Presently, the sector is accounted for 17 per cent in Indian GDP, which is expected to grow to 22 per cent by 2012.

Indian economy gets 45 per cent of manufacturing output and 40 per cent of exports from the SMEs as per the ministry estimates. Not only this, the sector employs 60 million people, creates 1.3 million jobs every year and caters to both national and international markets with the production of more than 8000 quality products.

Having been the key growth driver of the country economy, the MSME sector lacks the required cooperation from the government which in turn confines the growth of the sector in the domestic and global markets.

However, there is a slew of government schemes and sops offering enhancement and support to the business activities of the small units, but a majority of small traders fail to avail them due to lack of mindfulness and awareness about the schemes.

Here are five key financial assistance schemes being offered by the government to intensify the growth of the small scale units.

1. Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGMSE)

The Ministry of MSME and Small Industries Development Bank of India (SIDBI) have instituted a trust named Credit Guarantee Fund Trust Micro and Small Enterprises (CGTMSE) for the implementation of Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGMSE), which was formally launched on 30th August, 2000 and became operational from 1st January, 2000.

The scheme is aimed at providing collateral-free credit to both existing and new micro and small enterprise (MSE). The plan covers term loans and working capital facilities of up to Rs 100 lakh per borrowing unit and can be prolonged without any collateral security or third party guarantee to a new or existing MSE.

In case those units covered under this scheme go sick due to the factors beyond their control, the scheme also allows the lender to stretch the rehabilitation assistance. If the credit facility surpasses Rs 50 lakh, it may still be covered, but the guarantee cover will be extended for credit assistance of Rs 50 lakh only.

2. Credit Link Capital Subsidy Scheme for Technology Upgradation

Credit Linked Capital Subsidy Scheme (CLCSS) provides technology upgradation assistance to the SMEs primarily in the small scale industries (SSI). All entities, including sole proprietorship, partnership, cooperative, private and public limited companies, are eligible for the scheme.

The maximum limit of eligible loan for SMEs under the scheme is Rs 1 crore. It comprises a subsidy rate of 15 per cent.

The scheme was first launched in October, 2000 and was revised in September 2005. Under the revised scheme, the admissible capital subsidy is calculated with reference to purchase price of the plant and machinery.

3. Mini tools room and training centre scheme

In an endeavour to assist the manufacturing sector, the Government of India provides assistance to the state governments in setting up the tool room facilities, the backbone of the manufacturing sector as they create dies, tools, moulds, jigs, fixtures, gauges and precision components which are the essential elements for the operations of the production units.

Read more on: http://news.indiamart.com/story/govts-five-major-schemes-push-sme-growth-158127.html

'Buyer Seller Meet' - A platform by IndiaMART.com for SMEs in Healthcare sector to Network & Grow

The medicine and pharmaceutical industry in India is truly cutting edge. It has seen plethora of advancements in the past few years. Messe Duesseldorf India Pvt. Ltd. endeavors to constantly remain in the forefront of the changes, sweeping advances in the field. In association with MEDIC and IndiaMART.com, India's largest online B2B marketplace, as its online media partner Messe Duesseldorf has put its best foot forward with the support of Indian associations such as AIMED (Association of Indian Medicals Device Industry) and IAPMR (Indian Association of Physical Medicine and Rehabilitation), as well as vital international institutions to bring the medicine and pharmaceutical industry under one roof at Bombay Exhibition Centre (BEC) in Mumbai via 'Medial Fair India 2012'. 

But, what actually would interest the Small & Medium Sector Enterprises (SMEs) of healthcare sector here will be the 'Buyer Seller Meet' which IndiaMART.com will be organising in partnership with Messe Duesseldorf India Pvt. Ltd. Before delving deeper on what this meet has in its store for Indian SMEs active in healthcare sector, lets get acquainted with Medical Fair India 2012.

A Curtain Raiser
Medical Fair India 2012 will provide an interactive platform for the entire medical fraternity to gather under one roof and celebrate the technological advances in the field of medicine. It is a three day celebration of diagnostics, medical technology, rehabilitation, medical equipment and components. In fact, such a meeting is much more than just a scientific interaction. In addition to facilitating the exchange of expertise and knowledge, the fair provides an invaluable opportunity for the sellers to exhibit their equipments to the buyers.

It is anticipated that over 311 exhibitors from all over Asia, Europe and USA will attend the event showcasing the technological advances equipments and health care products to more than 5000 visitors. This event will also witness footfalls of entrepreneurs from various SMEs across the sector apart from industry leaders. As a matter of fact, for the very first time in the history of medical fairs in India, there will be a US pavilion with the Illinois State Office, the Minnesota State Office and the US Commercial Service participating, as well as group exhibitions from the Czech Republic and Japan.

Upholding Traditions: Where Buyers Meet Sellers
Partnering with Messe Duesseldorf, IndiaMART.com will organize a 'Buyer Seller Meet' alongside the fair. This meet will provide an exclusive platform to buyers who will come with their specific requirements and sellers who will showcase product samples of their respective companies. IndiaMART.com will make arrangements for pre-fixed meetings between buyers and suppliers of medical products as well as it will ensure that every buyer gets to meet multiple numbers of suppliers. The objective of this meet is the cultivation and promotion of various businesses across the field of medicine, creating prospects for exchanging of views on the development in instrumentation, establishing contacts and face to face meeting with prospective buyers. This meet not only gives a golden opportunity to Indian SMEs in healthcare sector to explore a whole new world of healthcare products & services but also a perfect platform providing enormous future prospects, latest trends and exclusive networking with the companies from the same industry.

Health & Welfare
The medical fair aims to direct the health care group giving them an opportunity to gauge trends and developments in medical industry. It gives them a chance to meet decision makers from India and abroad, whose and who of medical fraternity as well as renowned doctors & veterinarian surgeons. The fair tries to accomplish welfare of the buyers and sellers belonging to health care groups and pharmaceutical industry at its best.

Welcome to Mumbai
So, IndiaMART.com welcomes all manufacturers, exporters, importers, purchase managers, doctors, et al to be a part of this mega event in Mumbai, the bustling and lively city of India which is enjoying both an excellent economical climate and blooming healthcare services sector. Come and join IndiaMART.com at 'Buyer Seller Meet' where it opens gateway for Medical & Healthcare sector to a better tomorrow.

'Buyer Seller Meet' Schedule:

Date: 2nd - 4th March, 2012
Time: 10:00am - 04:00pm
Venue:  Bombay Exhibition Centre, Mumbai

Fill up your buyer's registration form by clicking on the link below and get a Face-to-Face interaction with suppliers of medical products:
http://trade.indiamart.com/mailer/ts231111/medical-fair-india.html

For more information, please visit:
http://www.biztradeshows.com/medical-fair-india/

The Merger Benefit for SMEs

The Indian economy is bubbling and along with that are the big players. Pleasantly, this time round a lot of SMEs are also joining the bubbly bandwagon. A primary reason for this growth is the way smaller enterprises are taking to business decisions like mergers and acquisitions.

The Pretty Picture
A burgeoning number of Indian SMEs are entering into mergers and acquisitions with various players from India and worldwide. The numbers have nearly doubled over the last two years alone. At this juncture, one needs to thoroughly understand the advantages of mergers for a particular SME. With a merger, an SME can acquire a greater set of resources for itself which can include manpower, machinery and other innumerable assets. In turn, this can boost its efficiency which can lead to an increase in its output and also lead to a reduction in the cost of producing a particular product or services. This reduction in the expenditure and improvement in the output can convert to better business growth for the enterprise. 

How Mergers Help
Mergers can help an SME in covering/removing its weaknesses in the long run. For example, any SME that is lacking in its R&D is advised to merge with an agency with strong R&D skills which can boost the productivity of both enterprises. Similarly, in the global context, mergers assist SMEs in penetrating new markets. Any Indian SME can also partner with agencies from foreign countries to facilitate retail for both their brands within India. Besides bringing a host of new technology and products into the country, it would also introduce better management, practice and culture to the agency. Both the agencies stand to gain from merger and it provides foreign SME with the know-how about Indian market and its demands for the coming times. Also, while SMEs go into mergers, they get into some fruitful partnerships regarding proprietary rights for products which can benefit the end user. IT sector is a clear example for such mergers where SMEs combine to offer a variety of products for the user. This also opens new markets for the SMEs and also contributes to innovation and propagation of a particular merger.

Reverse Mergers
In many cases, mergers also help SMEs in rising out of debt and works as effective exit strategy for many companies. Many SMEs can also enter into reverse mergers whereby a private company can merge with a public enterprise and form a public entity with a control exerted by the private company. With a reverse merger, private companies can exert better control on an existing public company and still run an enterprise with a public existence. There are a number of examples in India itself where an SME has acquired a larger status through its timely merger with another SME. Most of these mergers are found to be from the manufacturing sector although service sector is also joining in this process. The option of  leverage buyout financing and acquisition funding process which is supported by private equity houses prove to be some of the reasons for the sudden spurt in mergers amongst SMEs. Mergers prove to be one of the best ways for an SME to grow and expand. With the advent of globalization, it has become a more opportune growth for SMEs.  

Expert Speak: Mr. Nandan Sharma, TATA Communications

MPLS - The Gen-Next Intelligent Networking Solution for SMEs

Small and medium enterprises (SME)s today leverage the power of technology to ‘go global’ and stay connected with associates and clients ‘24x7’. In this age of globalization and localization or as we say “glocalization”, small enterprises need to conduct bulk of their business over the internet and in a secured manner.

There are multiple options, but the best suited is the Multi-Protocol Label Switching (MPLS), the networking system that is reliable and secure for national and global connectivity. What makes MPLS the most sought after technology to deliver voice and data services for small enterprises? It is mature, sophisticated and delivers voice and data services faster. MPLS provides faster packet forwarding for IP routers and supports Virtual Private Network (VPN) services with traffic engineering and network convergence.

In addition, by virtue of its performance and versatility, MPLS offers lower network total cost of ownership (TCO) than any other solution.

Now, as a SME business, would you not want a fully managed solution that helps you streamline your business operations more efficient? MPLS not only provides you with cutting edge technology with ample capacity for future expansion but also offers cost-effective scalability across multiple locations. After all, you do not want to spend a fortune on your network infrastructure.

But it is not just costs, in this age of cut-throat competition among businesses in all domains, SMEs always need to improvise and enhance product or service in order to carve a niche in the market.  We understand that you need to concentrate on your core competencies instead of struggling with high-end technologies and networking system. 

MPLS networking service provides you with a fully managed solution for all network and connectivity requirements along with supporting business critical applications. MPLS service thus is the key for you to get an edge over your competitors.

The contributor for this blog is Mr. Nandan Sharma, Product Head, Network Services, Tata Communications-SME (http://www.tatacommunications.com/sme/mpls.asp)

Techno- Savvy Age

Internet marketing is also known as web marketing, online marketing or e-marketing. It is a broad term and cannot be confined to just marketing through the internet but also through other mediums such as the wireless or email. The world, as postulated by Marshal McLuhan, can be regarded as a global village. McLuhan envisaged the world as interconnected by an electronic nervous system; this is popularly regarded as the internet. We live in the world of cloud computing where everyone is connected. No one can escape technology seeing that, everyone from a rickshaw puller to a billionaire, carries a mobile.

Web Presence
Technology is the pulse of life of the present generation. When a company establishes itself, it is extremely important for it to have a web presence. This acquaints the customers not just with the product but also with the company. Nowadays, the consumers are intelligent and the internet is the best medium to lure them. The media has a strong impact on the mindset of the people, who live in the world of virtual reality. Due to its nature, the internet medium allows consumers to research and to purchase products and services conveniently. So the internet has become a must in order to make a positive utilization of internet marketing.

Age of Information
It is essential for SMEs to realize that we live in the age of information. The way information is conveyed plays a very important role in boosting the sales of the product. This is the world of mediacracy and there could be nothing better than the internet to attract customers. Marcus Sheridan, the owner of ‘The Sales Lion’, says that effective content leads to winning the trust of the customer which further helps to get a lead in the market and thereby increase sales. So embrace internet marketing if you want to remain ahead in the promotion of the sales of your company.
 

Fast and cost effective mode
The best part is that with a small amount of investment just about anyone can have a web page on the Internet. In this manner, almost any business can reach a large market, directly, fast and economically. It is irrespective of the size or location of the business. This medium is cost effective as any SME can save its funds through internet marketing. This is because, anyone who can read and write can have access to the World Wide Web. According to the Internet World Stats, India has a large number of internet users which has gone up to about 100,000,000 till December 31, 2010.

Interactive medium
The internet has consolidated itself as a very powerful platform with an impact on the working culture and the manner in which people communicate. It has changed the working environment and affected the way businesses operate. It is about interaction — interaction creates relationships and those relationships open up the opportunities for you to share information about your products and services. Good personal relations can actually boost your sales.

Thus it is important to ensure that your website is user friendly, concise and up to date. In this way you can inform the world about the latest developments in your firm. Make good use of the innovative method of marketing through the internet to generate a more positive responses towards your business.

How Personal Branding Works for SMEs - Marketing for the SME

We all must have heard of the age old statement: Behind every successful man, there is a woman, this statement has evolved into Behind every successful man, there is a well crafted personal brand" and for SMEs and emerging companies, the first rays of light in terms of business generation majorly comes from the network of its founding team/ stakeholders.


Lets put it this way: in the above sentence the real important keywords are: Successful, Personal Brand.
In my personal experience of the marketing domain, Iv seen many brands build. Iv been lucky enough to work with and under some real business leaders who with their knowledge, business acumen, experience, risk taking and acting faster than everyone else growing in niche domains, have created personal brands. They are re-called. THEY SELL.


YES! I said it, THEY SELL. Products from major Brands which we buy today in the market are known because the brand spends dollars and dollars on creating a strong brand recall with us (their customers).


But what happens to companies which are small? 
Well, they sell because the first thing that sells for them is their founding/ co-founding/ core team. First the man/ woman, his/ her words sell. His/ Her brand sells. Coming from this thought, well, in my marketing experience I have had the chance of getting in touch with entrepreneurs and hence I talk from experience.


Great to know this, but how does one grow upto making/ building a personal brand?
There are may theories and a simple Google search on personal branding, will give you enough gyaan about how to go about it and what all should you do etc. Let me share my understanding of talking to many entrepreneurs how they generate business for themselves and why do their clients buy them, I have made a standard pointer list which essentially is a step wise approach to building a personal brand

• Question yourself: what are you really good at
• Find your passion: start doing what you really really are passionate about
• Find your niche: realize your niche, your domain
• Add value: start working for not earning money, but to really add value in the early stages of your career
• CREATE A STRONG NETWORK: NETWORK: NETWORK: NETWORK: there is nothing more powerful than a strong and relevant network. A powerful network takes you places
• Credibility is CREDIBILITY nothing else. Period.: work while creating a strong credibility from the very beginning

How do you Network?

One of the best things you can do for yourself which will keep paying back to you for the rest of your professional life, well, go and attend as many relevant events, as you can. Events are the best places to network with people who can help you improve and leverage your talent and connect and explore opportunities, while building new opportunities.

There are many platforms like IndiaMart, TiE and NASSCOM, which you can subscribe to and upon becoming members, participate in their events.

Which is the Next must event for the SMEs in India?

Be there at the SME Conference 2011 by IndiaMart and TiE at Sheraton, New Delhi, on January 28th.

Network Socially: quickly and for free

Use free and powerful social networks like LinkedIn: with a powerful profile on LinkedIn, you will sure be able to attract and connect with the relevant network of people.

Position Yourself, Go Talk, Create Content!!

Start a blog, share your thoughts/ thought leadership and express yourself

Finally, let me take a deep breath (have been breathless till now, stopping myself from saying this): well, the truth sure is, behind every successful man, there is a woman, cmon' how could you forget it?

Look forward to your comments!!

Post Contributed By: Aditi Thakur (Expertise: Marketing)