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MSME

MSME Loans Update: Interest Subvention Scheme on MSMEs Loans Extended Till End of March 31, 2021

Mumbai, October 8: The Reserve Bank of India (RBI) announced that the two percent interest subvention scheme for micro, small and medium enterprises (MSMEs) on loans extended by co-operative banks has now been extended till March 31, 2021. Moreover, the terms of the scheme have also been tweaked. In November 2018, the government had announced the ”Interest Subvention Scheme for MSMEs 2018” for scheduled commercial banks for two financial years 2018-19 and 2019-20. With the new development in place, the scheme has now been extended for the financial year 2020-21.

According to reports, co-operative banks also became as eligible lending institutions effective from March 3, 2020 and the coverage of the scheme is limited to all term loans and working capital to the extent of Rs 100 lakh. The scheme provides for an interest relief of two per cent per annum to eligible MSMEs.

The RBI, in a notification, said certain operational guidelines for the scheme have been further modified by the government. The validity of the scheme has been extended till March 31, 2021. “Accordingly, fresh or incremental term loan / working capital limit extended by co-operative banks with effect from March 3, 2020 will be eligible for coverage under the scheme,” RBI said.

A report by PTI said that the requirement of Udyog Aadhaar Number (UAN) may be dispensed with for units eligible for GST. Units not required to obtain GST may either submit Income Tax Permanent Account Number (PAN) or their loan account must be categorised as MSME by the concerned bank, the RBI said. Moreover, RBI has asked co-operative banks to take appropriate action as envisaged in the operational guidelines and issue necessary instructions to their branches or controlling offices for successful implementation of the scheme.

Reports inform that according to the scheme, the loan accounts on the date of filing claim should not have been declared as non-performing assets (NPAs). No interest subvention would be admissible for any period during which the account remains NPA.

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Startup

5 Mistakes Which Startups Should Avoid While Starting a Business

Startup Growth
Startup Growth (Photo Credits: Pixabay)

Starting a business is not an easy job. There are a lot of things that need to fall into place. You may have the right idea, but lack in marketing it, therefore there several crucial decision that needs to be made while running a business. More caution needs to be exercised especially if your business is small and it is a startup.

One poor decision can hurt the potential for success, or at least set you back. While there is no fool-proof plan for success, but there are some commonly committed mistakes, which can be avoided. Here are 5 mistakes, which startups and small businesses need to avoid at any cost.

Not Having a Plan

Small companies often fail to make a mark because they lack a proper plan. Planning may be tedious, but without a solid plan for your business that includes business idea research and market potential, you will be operating in the dark.

Lack of Market Understanding

When you launch in the market, you need to have a proper understanding of the space where you are working, including the competition. Never underestimate your competition and analyse their strengths and weakness wisely.

Hiring More Than Required

Never do this mistake of hiring more employees than what is required. Based on the budget allocated for a particular profile, companies should never hire more resources than what is required. One needs to remember that it is a small company and the resources are limited. Companies often make the mistake of hiring more than what is required and then they end up firing them.

Spending Too Quickly:

The most important thing which startups and small businesses should keep in mind is to spend wisely. In the initial few days, one might see that investing money is giving good returns, which might prompt them to spend more. However, there should be planning and based on which, companies should spend.

Planning only for success:

It is very important to be prepared for failure. What will happen tomorrow is not known to anyone. There can be a lot of factors that can hinder the growth of a business. For e.g, the coronavirus pandemic has caused several businesses to wind up. At the start of this year, no one could foresee that the pandemic would take such an immense scale which would make the economy dwindle. So don’t start a business, buy planning only for success. There will be times, and days when things will not go as per the way you want. So be prepared for it.

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Technology

‘MSME Prerana’, an Online Business Mentoring Programme Launched for MSMEs; Here’s All You Need to Know

Online Business
Online Business

Chennai, October 7: ‘MSME Prerana’, an online business mentoring programme for MSMEs by state-run Indian Bank has been launched. The initiative was launched by Union Finance Minister Nirmala Sitharaman on October 6. The online programme will be made available in local languages and is aimed at empowering entrepreneurs through skill development and capacity building workshops. Sitharaman launched the initiative at the Indian Bank’s corporate centre in Chennai.  During the launch, Sitharaman said Indian Bank has taken an out-of-the-box initiative in launching MSME Prerana which will handhold the entrepreneurs through a mentoring program.

The Finance Minister added saying that this novel initiative shall further inspire others in the banking sector to adopt similar measures. Financial Services Secretary Debashish Panda, who also participated in the launch event through video conferencing, delved on the various initiatives taken by the government to support MSMEs.

About ‘MSME Prerana’ Programme:

  1. The ‘MSME Prerana’ initiative is in collaboration with Poornatha & Co, a firm that designs entrepreneurial development programs in vernacular languages using online web-based interactive sessions and case studies.
  2. The first two programs will be in Tamil for the Coimbatore clusters of Indian Bank. It will then be scaled up across the country in Hindi, Telugu, Kannada, Bengali and Gujarati, the Bank statement said.
  3. Spread over 12 sessions, the program enables MSME entrepreneurs to acquire expertise in handling finance and managerial skills, capacity to handle crises in business, understand the dynamics of credit rating and risk management.
  4. While the sessions on managerial and financial skills will be conducted by Poornatha & Co, the banking related topics will be handled by Indian Bank.
  5. MSME Prerana is our effort to bridge this gap in the skill sets. It is a business mentoring program that gives inputs in simple terms (no jargon) and in the local vernacular.
  6. On successful completion of the online programme, all participants would get a certificate, issued jointly by Indian Bank, Poornatha & Co and MADE (Michigan Academy for Developing Entrepreneurs), USA.

The lender’s Managing Director and CEO Padmaja Chunduru said during its outreach programs, webinars and interaction with the bank”s MSME units, one main takeaway was that there is still a lot of dependence on chartered accountants or agents to access bank loans.

Chunduru added that the barriers these MSMEs face include language, confusion about what the bank looks for when they approach for loans, how to manage cash flows, which government schemes are available and suitable for them and how to register themselves for these schemes.

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MSME Startup

Foreign Firms Flouting MSME Tendering Norms, Highlights CEAI in a Letter to Nitin Gadkari

Ministry of MSME
Ministry of MSME (Photo Credit: PIB)

New Delhi, October 7: An engineering professionals body-the Consulting Engineers Association of India (CEAI), in a letter to Nitin Gadkari, has alleged that foreign companies are flouting the MSME tendering norms.

The letter has drawn the attention of the government towards flouting of the MSME tendering norms by “the powerful foreign companies”. The body mentioned that the government has changed the tendering system to benefit the small and medium enterprises in the country by limiting tenders below Rs 200 crore for Indian companies only.

However, the provisions are being flouted by powerful foreign companies wherein they set up business operations in India by incorporating a company under Companies Act 2013 either as Joint Ventures or Wholly owned subsidiaries or a Liaison/Representative Office.

According to an IANS report, the body’s President highlighted that these entities operate as an Indian Company, duly complying with the provisions of the Indian Company Law and Indian tax laws. The current definition allows such companies to enjoy all benefits provided to Indian companies, especially the MSME’s.

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Startup

Piyush Goyal Invites Startups to Register at Public Procurement Portal GeM And Offer Goods, Services to Government Organisations & PSUs

Startup
Startup (Photo Credits: Pixabay)

New Delhi, October 7: Commerce and Industry Minister Piyush Goyal on Tuesday invited startups to register at public procurement portal GeM and offer goods as well as services to government organisations and PSUs. According to a Business Standard report, he mentioned that about 4,000 startups have already registered at GeM.

He made this announcement at the first edition of the National Startup Awards 2020 event. Goyal elaborated about the huge potential in areas including railways, airport services, food processing, education, healthcare, agriculture, electronics and defence, and that about Rs 4,000 crore was already disbursed through Fund of Funds for startups, to about 361 startups.

The National Startup Awards, conceived by the Department for Promotion of Industry and Internal Trade (DPIIT), recognised and rewarded the outstanding startups and ecosystem with high potential of employment generation. The first edition of the Awards invited applications across 12 sectors, which were further sub-classified into a total of 35 categories.

For the Awards, a total of 1,641 applications were received from startups spread across 23 states and 4 Union Territories. These applicants included 654 women-led, 165 academic institutions based, and 331 startups working in rural areas.

Then in the next step, all the applicants were evaluated against six broad parameters namely innovation, scalability, economic impact, social impact, environmental impact, and inclusiveness and diversity. Then after three rounds of detailed evaluation, 199 startups were selected for presentation before the jury.

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Startup

Franchise Industry Trends to Remember in 2020

RuPay Card for Business
रुपे कार्ड के फायदे (Representational Image)

As far as trends are concerned, every year they are marked with new beginnings and possibilities. If you are all set for your entrepreneurial journey, then the franchise route can prove to be beneficial. If you are new to entrepreneurial life, you can start by taking the franchise route as it has proven to have a higher success rate.

You must be wondering why this route is more successful. It is due to the fact start-up owners have to work on how to run their business from scratch with the plan and everything, whereas in franchises gets all ready with the plan and strategy from the parent company.

Due to the constant shift in trends coupled with technological advances, it’s making the Indian franchise industry push boundaries.

So, let’s have a look at the latest trend that is influencing the franchise industry in 2020.

The Rise of F&B

Due to the pandemic, people may have stopped eating out, but being an Indian, we can’t miss out on the food from the restaurants. We prefer to eat Indian food as well as fusion and international cuisines. Therefore, the F&B sector has always one step ahead of its expected growth rate in the franchise industry.

Take a look at how successful McDonalds, for example, how it has proved to be one of the most successful food franchises across the globe. Therefore, it is expected post-COVID this industry is going to see the excellent growth opportunities for entrepreneurs to invest in a franchise.

The Homecoming of International Brands

India is all ready to become the second-largest market for many international brands. Brands like taco bell, Wendy’s, or most popular brand Starbucks is the fastest- growing international brands in the Indian market.

In the past few months, various renowned brands from the US, UK, Europe, Russia, Australia, GCC & Asia Pacific were expected to start franchising in the coming years in our country. Enlarging a brand internationally by the method of franchising involves less risk, minimum capital, and provides a high rate of scalability of the brand.

Indian brand versus Global

That’s true, international brands attract and woo more to Indian customers. But now we are moving towards vocal about local brands the initiative, which gives Indian brands a platform as well opportunity for you to take up the franchise as a minimum investment with more revenue.

Local brands are curated in keeping Indian taste, preferences, and mindset, which leads to seeing rapid growth too.

Wellness still going, Strong

Health and wellness are still a top priority of ours, and during this COVID-19 time had made it an only priority. Therefore, it’s rising steadily over the years as consumers continue to invest in wellness.

Therefore, investing in this sector can always turn out to be a good investment, and holding franchising can benefit you well.

Going through trends explains, there is n number of opportunities for entering the franchise market. So, many options available to choose in this franchise industry have something for everyone. The industry will aim to grow and progress in an upward direction. Hope the above-mentioned trends, help you figure out and clear your thought regarding the franchise industry.

 

 

 

 

 

 

 

Categories
Startup

Top 5 Franchise Business Ideas in India in 2020

If you believe in working hard and with the correct process, then a business is an occupation that can help you to earn. At current times India is one of the leading commercial and economic hubs for many international ventures coming to the country with various franchise opportunities.

These franchises not only benefit the brand to increase its footprints but also plays a vital role in the country’s economic development with more job opening. It is one of the factors why people are aiming to franchise business in India.

One of the biggest myths among business owners have opened a franchise in India will cost you a lot. But, that’s not true one doesn’t need a lot of funds to start a franchise business. A lot of people search for business ideas for but they doubt the success rate but, in the franchise business, the risk factor is less as in this, you get well – established brand business model.

Now, it’s time enlighten about some of the best franchise businesses in India.

Patanjali

Patanjali started in 2006, founded by Baba Ramdev, along with Acharya Balkishan. It is known as one of the trusted and popular Indian brands with exceeding revenue of 200 crores. The product line of the company is herbal and Ayurvedic items.

This brand has become one of the most value-added products in the FMCG market. For the franchise, you only need a minimum area space of 500Sq Ft and a minimum investment of 7 lakhs. In return, you can earn a great amount of money from it, as it became a reliable and economical brand.

Archies

Who doesn’t know the name of this brand? The brand has a network of 500 national and international outlets, as its popular brand that is well known for selling greeting cards, personalized gifts, artwork, and many more such things. Therefore, starting an Archies store can be a profitable business for you as it does not require a lot of staff to work for you.

Therefore, if you have an interest in the arts and are creative, then it can be a great franchise business for you.

KidZee School 

KidZee is one of the popular and fastest-growing franchise businesses in the education sector. It is one of the largest pre-school chains in Asia, which concludes more than 1900 centres opened in over 700 cities in India.

For opening a franchise of it, you need to have a minimum floor space of 2000-3000 sq. ft. This brand is listed in the top 100 franchise opportunities in 2015 as well and awarded as a leading pre -school brand of the year 2018.

Amul

One of the trusted and oldest brands is Amul. Its milk or ice cream, we look forward to one brand that is Amul. It is one of those brands which, growing – rapidly in our country, thanks to their best innovation and marketing strategies, they always stand out.

For the franchise, you will require at least 300 sq. Ft feet plot at a good location with an investment of a minimum of 2 to 5 lakh.

DTDC Courier Franchise 

One of the essential commodities is courier service in which everyone would need at a certain point. DTDC is one of the reliable and trusted by most people across the country. It is another fastest-growing industry, and the growth rate is high than normal.

Additionally, the best aspect of taking this franchise is you don’t need a make a huge investment. A small area of 10*10 will be enough.

Starting a franchise business is one great idea to consider in the current marketing trend. One of the best things you don’t need to start from scratch, the parent company provides the service in which they do the marketing of the business.

 

 

Categories
MSME

MSME Sector to Grow and Contribute to Job Creation With the Help of Structural Reforms Taken by Modi Govt, Says Finance Ministry Report

Business in India | Representational Image Only (Photo Credits: Pexels)

New Delhi, October 6: The Finance Ministry on Monday said that the major structural reforms launched by the Modi government in agriculture markets, labour laws provide unparalleled opportunity for the MSME sector to grow and prosper. These reforms will in turn contribute to job creation in the primary and secondary sectors. A report by the Finance Ministry stated that the historic labour reforms will benefit MSMEs to increase employment, enhance labour productivity and thereby wages in MSMEs.

According to a report by PTI, the Finance Ministry said that important structural reforms that have been taken by the government to ease the risks posed by COVID-19 pandemic will strengthen India’s economic fundamentals and ensure long-term sustained growth. “The enabling policy environment and initiatives taken by all stakeholders to seize the available opportunities will actualise the growth potential of the Indian economy,” the monthly economic report prepared by the Economic Affairs Department of the Finance Ministry said.

The report further said that the sustained spread of the virus poses a downside risk to short-term and medium-term growth rate, adding that the government has strategically undertaken various important structural reforms, encompassing various sectors, to combat these risks. Meanwhile, the implementation of ‘Atmanirbhar Bharat’ package and unlocking of the economy have ensured that economic recovery in India has gained momentum.

The PTI report adds that as on September 25, India’s foreign exchange reserves stood at USD 542.02 billion, equivalent to more than 13 months of imports. India”s probable growth path is visible in this assessment.

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Startup

5 Things to Remember Before Starting a Business

Big cheers to the people who have the ambition to start a business. Remember this before you take the first step towards your startup or even if you are at an early stage when working on the idea formation. You need to step back and think about the strategic vision of your business as starting a business can be stressful.

As you start working on its main plan, you think it’s a million things to get done all in one go. There is no lie, saying every new and small business owner have to take care of many things, and it’s tough. Therefore, a little planning can make it more manageable, and help you in taking action towards building your business.

As said by many, a few simple significant steps taken at the beginning of the business can help you streamline things easily. Therefore, we have listed some tips you need to remember to do before starting a business.

Do your Homework on Customer

Make sure you know your industry you are entering so you can dominate it. It doesn’t matter how different or unique you think your idea is, still you need to be aware of the competition. We always believe our business concept is brilliant, but it doesn’t mean anybody else hasn’t thought about that idea.

You start with the research, with your target demographic as is they are the driving force for your decision making. You can’t earn sales or profit without the right customer. It is crucial to make sure you are presenting what your customer need. Once you have researched the right way, then you will get insight into your customer buying decision and save you time for future experimenting.

Give importance to the legal aspect

Always follow the law, always remember this line. It’s one of the significant factors you need to keep the mind and should take while strategizing. In the first step, you should take in starting your business, choosing the right legal structure. At the beginning of the startup, you need a proper registration from the government, and you need to see all other legal aspects like taxes, paperwork, etc.

As an entrepreneur, you need to create the articles of incorporation, obtain an employer identification number, and apply for all required licenses.

Roadmap Your Finances

Every business needs money, which you need to plan from where you will get the capital. A lot of entrepreneurs start a business with limited capital, which is a large hurdle to many. There are plenty of options for arranging funds, but the most common is to seek from family or friends. And if you have exhausted this option, then apply for a business loan under government schemes.

Therefore, whenever you start your business, then make sure your road map completes financing for the present and future.

Know the risk.

That is the fact, there will always a risk with a new business startup. Understanding, calculating, and then planning as per it is a significant step for any new and old startup. Therefore, this means you need to assess your industry risk before entering and moving forward with your plan.

So, before taking the faith of leap in your idea, you need to sit down and talk about all the risks you about to come across.

Time it right

Time is money because timing is a significant factor in setting up a business. Of course, you want to start your business when the economy is healthy, but there is also a flow to decision making that’s important to be aware.

Therefore, the timing should be right where and what you need to think through and take what decision should be taken.

Starting a business can be exciting and challenging, but you need to do your homework and think about all the steps you need to take now and in the future.

 

 

 

Categories
Startup

Zomato, Toppr, Rebel Foods & Other Startups Raised Funding Amid COVID-19 Pandemic; Here Are 5 Indian Startups Which Closed Funding Deals

Startup
Startup

Mumbai, October 6: The year 2020 has not been an easy year so far due to the pandemic, from the rising infections, increasing deaths to job losses, businesses being shut to the dwindling economy. However, there have been few players who performed well and managed to hold high in spite of the challenges laid out on their path.

The crisis has also seen some startup raising funds and closing deals. Here is a list of five startups who raised funding during the coronavirus lockdown.

Cloud Kitchen Hoi Foods: In May 2020, Cloud Kitchen raised $2 million in a Pre-Series A funding round led by 1Crowd. The cloud kitchen startup also saw participation from Sprout, Angelist, Samar Singla (Founder of Jugnu), Jaideep Mehta (CEO of VCCircle), Mukund Kulashekaran (SVP of Business at UrbanClap), and other

Zomato: Gurugram-based Zomato closed four rounds of funding, securing its latest round of $100 million in September from Internet Fund VI Pte Holdings.

Toppr: In July, ed-tech startup Toppr raised Rs 350 crore in Series D round, led by Foundation Holdings, with participation from existing investors, including Kaizen Private Equity.

Rebel Foods: In April 2020, cloud kitchen operator Rebel Foods raised $50 million from existing investor US-based hedge fund Coatue Management, according to its filings with the Registrar of Companies.

JetSynthesys: In July 2020, gaming and entertainment startup JetSynthesys crossed 100 million users across 180 countries. It raised an equity round of Rs 300 crore led by Adar Poonawalla and Kris Gopalkrishnan.

According to a report published earlier this year, the funding in Indian tech-led startups rose by 14 percent in the first quarter of 2020 as compared to the same period last year, yet only 16 percent startups and SMEs had the cash to survive for more than three months revealed a study in June.

The consumer confidence collapsed in May 2020, with the Current Situation Index (CSI) touching historic low and the one year ahead Future Expectations Index (FEI) also recording a sharp fall, entering the zone of pessimism, as per the Consumer Confidence Survey (CCS) released by the RBI during the COVID-19 lockdown.