SMBs embracing web conferencing to cut cost

 Web conferencing as a business tool has seen significant growth not only in adoption but also in usage in the last few years. Although, many are of the opinion that web conferencing is primarily a large enterprise application, but it has displayed considerable lucrativeness to the small to medium business (SMB) users.

Emergence of web conferencing as a business tool
Just a few years back, the business organisations were mainly dependent on phone conferencing for organising emergency meetings between individuals who were separated by long distances.
The successful introduction of web conferencing solutions has brought revolution in the mediums of communication, which are used by the different business organisations. All that is needed for organising a web conference is a computer system along with high speed Internet connection and web-based applications.


There are certain similarities in the applications and motivation for using web conferencing between the organistions of all sizes.


SMBs adopting web conferencing
The SMBs have taken up web conferencing for their own set of reasons, mostly driven by their unique circumstances – the requirement to attain results while focussing on minimum in-house resources.


It is time for the SMBs to adopt web conferencing so that it emerges as the medium of choice for conducting meetings. It has been found that large organisations make use of technology to drive business processes and the SMBs need to aggressively use on-line presentations and demonstrations to boost revenue by facilitating meetings with customers and prospects. Some important factors such as the ability to save travel costs and time apart from raising productivity should act as motivating factors for SMBs to use web conferencing.


Web conferencing has gained prominence among some SMBs who have posted solid-to-dramatic rise in usage. Technology delivers high-to-very-high return in value for them.


Some of the SMBs are also of the opinion that web conferencing has emerged as an integral part of their organisations and it is not possible to do business without it.


According to Frost and Sullivan, the web conferencing industry has been witnessing profit due to the organisations' austerity spree which consists of enhanced partnership and cut in travel costs. A study by them shows that the market - covering 13 APAC nations - has been successful in earning revenues of $97.4 million during 2008 and is projected to touch $391.8 million by the end of 2014, at a CAGR (compound annual growth rate) of 26.1% (2009-2014).


Web conferencing pushing SMB growth
Business conferences and decision-making options depend mainly on the availability of information at the correct time. These business meetings undertaken through web based video conferencing instill confidence among both participating parties. It serves several purposes:


- Web-based video conferencing helpful in lowering costs for training workforce.


- It helps people spend less time focussing on travelling. Every interaction brings out maximum value.


- In businesses, a lot of focus is given on customer experience. With the help of video conferencing, the organisations are able to organise meetings on regular basis. It is beneficial for giving out more information, keeping people up-to-date on company/product developments. This technology helps strengthen customer relationships.


Conclusion
It is important to choose any web conference service provider that offers services with features best suited for specific business needs. The subscription of conferencing services from reliable service provider will be helpful in ensuring the quality and also data security for SMBs.

'Export of non-traditional sports goods should get boost'

In an interview, Trilok N Anand, member of The Sports Goods Manufacturers and Exporters Association (SGMEA) and the Director of Sanspareils Greenlands Private Limited, shared his opinion on the present status of SMEs in the sports industry and also voiced for augmenting non-traditional sports items in the export basket of the sector.

Here are the excerpts from the interview...

How do you find SGMEA's role in sports industry?

Trilok N Anand:The Sports Goods Manufacturers and Exporters Association (SGMEA) is playing the role of a facilitator in the sector and is gearing up for more advancements to provide fillip to the industry.

How are exports playing out for the SMEs in this industry?

Trilok N Anand: The exports of sports goods currently stand at Rs 600 crore per annum, which is just minuscule, compared to the other industries in the MSME sector. The potential is immense and can grow at 40%-50% per annum if the basket of items is increased to include non-traditional sports items.

What are the growth opportunities for the SMEs available in the domestic front? Trilok N Anand: For SMEs, immense growth opportunities exist in the domestic market. However, because of constraints in production, the erstwhile manufacturers have now also become traders and importers and trying hard to build their own brands.

What are the key challenges the sector is currently facing?

Trilok N Anand: First of all, the industry lacks direction and the need to innovate. The industry leaders are content and happy with what they are doing. There has to be a challenge to perform in an outstanding manner, out of box thinking, and excel in areas not touched so far such as non-traditional sports like winter sports, skiing, martial arts, hiking and trekking, baseball equipment, golf equipment, etc.

What according to you are the drawbacks of the 1% hike in excise duty on sports goods announced by Finance Minister in Budget 2012-13?

Trilok N Anand: The government has announced the excise duty hike of 1% to 2% on sports goods. However, on sports gloves, this has been levied at 12%. This is because of Harmonised Code, and these gloves are appearing in Chapter 42, 61 & 62, whereas there is a full Chapter 95 dedicated to Toys and Sports goods in Central Excise Tariff of India. As a matter of fact, all items of sports goods should attract an excise duty of 1% to 2%, or no duty at all, to encourage more and more people to participate in sporting activity.

Lack of skilled manpower is emerging as a major issue for the small sector at the moment. What measures should be taken in this regard?

Trilok N Anand: By its very nature, the sports goods industry is highly labour intensive. We are now seeing a major hurdle in getting workers in the traditional crafts of making cricket balls, cricket equipment, hockey sticks, football and inflatables. The sports industry has to go in for major mechanisation, skill development, and improvement in productivity levels. The skilled labour crunch has been a problem, is a problem, and will be a problem, and industry has to live with it.

What are the growth prospects for new entrepreneurs entering the sport industry?

Trilok N Anand: Growth prospects for new entrepreneurs entering the sports industry are immense. Sky is the limit for them. Unfortunately every new entrepreneur is getting into trading and very few are venturing in manufacturing. The foundation is there for them to build skyscrapers.

Are you satisfied with the Union Budget presented by the Finance Minister recently?

Trilok N Anand: The Union Budget for 2012-13 is neutral for MSME sector. If the government really wants to encourage this sector, apart from what both State/Central governments are doing, the plethora of rules/regulations that govern MSMEs should be eased out. The government should give encouragement to this sector as it is considered as the backbone of the country's economy and creates the maximum jobs, and also creates entrepreneurs for the future.

What according to you have been remarkable developments Central Government made in the sports industry in last 6 months?

Trilok N Anand: Cannot think of anything remarkable. For one the infrastructure for the growth of playing sports is totally missing, along with the Government's various schemes. Sports should be given impetus by making it compulsory in schools. Note: All opinions expressed in this interview are views of the person being interviewed. IndiaMART SME News completely disclaims any responsibility for the views expressed.

BSE announces guidelines for SME listing

The Bombay Stock Exchange (BSE) has stipulated eligibility norms for listing on SME Exchange. This exchange was unveiled in March this year. 

 

AS per the circular on BSE SME website, the eligibility rules are - 

1.Net Tangible assets of at least Rs. 1 crore as per the latest audited financial results

2.Net worth (excluding revaluation reserves) of at least Rs. 1 crore as per the latest audited financial results 

3. Track record of distributable profits in terms of sec. 205 of Companies Act, 1956 for at least two years out of immediately preceding three financial years and each financial year has to be a period of at least 12 months. Extraordinary income will not be considered for the purpose of calculating distributable profits. Other wise, the networth shall be at least Rs 3 Crores.

4. Other Requirements
· The company shall mandatorily facilitate trading in demat securities and enter into an agreement with both the depositories.
· Companies shall mandatorily have a website

Read more on: http://news.indiamart.com/story/bse-announces-guidelines-sme-listing-158863.html

Microsoft brings on board Avnet, Redington for SMB space

Software company Microsoft India has roped in Avnet and Redington as its Value-Added Distributors (VAD) in India with aim to develop an enhanced level of service for partners and also customers in the small and medium enterprise (SMB) sector on the basis of recent technologies.

 

The value-added distribution role is developed on a unique business model with a specialised resource portfolio optimised for raising adoption along with market development of specialty solutions.

According to this collaboration, Avnet will offer complete solutions to Microsoft's value added resellers for 'Virtualization and Management and Identity and Security', while Redington will address the demands for 'Unified Communications, Security and Cloud Services'.

Read more on: http://news.indiamart.com/story/microsoft-brings-board-avnet-redington-smb-space-158700.html

India's handicraft exports climb 17.5% to $2.7 bn during FY12

Country's handicraft export advanced by 17.56 per cent to $2.7 billion during the financial year 2011-12 as compared to the same period in 2010-11, as informed by the nodal body of handicraft exports today.

 

The country witnessed the growth despite the sluggish demand in major importing markets like the US and Europe. 

The US and Europe together account for more than 60 per cent of the country's total handicraft exports. 

During the financial year 2010-11, the exports stood at $2.3 billion, as per the figures of the Export Promotion Council for Handicrafts (EPCH). In the last fiscal, the growth was mainly driven by growing demand in new markets like China and Latin America. 

Read more on: http://news.indiamart.com/story/indias-handicraft-exports-climb-175-27-bn-during-fy12-158365.html

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

Technologies That SMEs Must Invest In

How to implement Six Sigma?

Being a Small & Medium Enterprise (SME), you have to adopt new technologies for making progress in a highly competitive environment. Technology is redefining the modes of business, and fast growing SMEs have to adopt technology to herald their growth and development. If you are wondering about the technology which has boosted the growth of industry leaders such as Motorola, GE, then you need to know more about the six sigma and its unique advantages.

What’s Six Sigma?

Six Sigma focuses on the improvisation of process outputs through the identification and removal of defects or errors and minimising the variation in manufacturing procedures. Six Sigma has its origins in the manufacturing process with 6 and Sigma being references to the statistics-based model of manufacturing. A six sigma process refers to a method where the manufactured products have a 99.9996% defect-free content and the defects are reduced to 3.4 per million entities generated.

How to implement Six Sigma

For implementing Six Sigma, your SME has to go through a phased process with the first step being the training of the staff. The team would have to be divided into different categories with the Executive Leadership at the top which would comprise top management. They are the ones responsible for preparing the vision of the process. The next category consists of Champions who implement it across the enterprise. Master Black Belts (MBBs) form the next section which work like in-house trainers for the process. Black Belts work under the MBBs and apply the Six Sigma methodology to come up with the results. The final section consists of the Green Belts which are responsible for implementing the process along with other tasks of the organisation.

The second step is to identify an opportunity. You would have to decide the most important requirements of your customer and collate detailed information relating to the process. Based on this data, one can estimate the performance of the process. This would also involve understanding the parameters which were adopted for the process. Six Sigma training equips the team to use various statistical tools to examine and analyse the data. Following this, your team can forward solutions to be implemented based on the findings from the analysis. The improvements can then be crosschecked to understand the progress. These steps can be repeated till a steady rate of success is achieved. It is a time taking process so you would have to be patient with the process.

Types of methodologies

Primarily, there are two project methodologies in Six Sigma. They are based on Deming’s Plan-Do-Check-Act Cycle and consist of five phases of processes. For improving an existing business process, DMAIC is used. Whereas the creation of a new product or service requires the implementation of DMADV. You can choose your options as per your preference. 

 

The Trick of Six Sigma

For implementing Six Sigma, you have to be deeply committed to the project. It involves all levels of the management and utilises managerial and financial resources. A set of policies need to be established and training programs need to be conducted for the staff. There are various agencies which conduct Six Sigma training which can be contacted for the purpose. You can even hire a Six Sigma professional to implement and train staff for a continued input from time-to-time. Six Sigma has been the forte of large companies with more than 500 employees but soon it could be your handy partner which can take you into the big league.