November 23rd, 2013
The Micro,small and medium Enterprises of India ie MSME sector contributes 45% to manufacturing and 40% to exports as per recent survey by GOI.More than 66% of MSME’s are situated in 6 major states of India namely Tamil Nadu,Gujarat,Uttar Pradesh,Kerala,Karnataka and Madhya Pardesh.
According to the MSME Ministry,the sector employs more than 101 million people and produces more than 6000 products ranging from traditional items to high -tech.It has proved to be major supllier of goods for mass consumption as well as key producer of high -end products in the electronic equipment and the drugs and pharmaceuticals segments.
MSME’s in India follow cluster approach,which allows sustainable growth.The clusters usually have a common facility centre. The country has around 7,000 clusters in traditional handloom,handicrafts and modern MSME industry segments.Initiatives that individual units may not be able to afford are supported through cluster development programmes.Several exisiting institutions,including service centres,provide assistance such as locating markets,linking technology,facilitating common purchaes,connecting with designers and other service providers.They facilitate subcontracting and training,too.Many industrial zones have adopted the participatory approach to reap the benefits for clustering.For example,Panipat produces 75 % of the total blankets produced in the country;Tripur contributes 80 % to the total cotton hosiery exports,Agra is leader in leather shoe exports and Ludhiana is well known hub for woolen knitwear,sewing machines and bicycle and its parts.
However,MSME Sector continues to face major challenges in terms of Finance,Technology adoption ,Infrastructural Problem,s and mainly awareness about Govt schemes.
But the best of MSME Sector of India is yet to come.
November 16th, 2013
An entrepreneur friend of mine is running a successful service company.His services are in demand and thus his business is growing by leaps and bounds.
With a vision to expand his business,he approached a bank with his expansion plans which needed investment of Rs 6 Crores.Bank was happy to hear his success story,was satisfied with last 3 years of profitable balance sheet and cash flow.What’s more,bank was totally convinced about the success of his expansion plans.
The deal seemed to be almost done when the Bank asked for collateral in return of extending credit for Rs 6 Crore.
My entrepreneur friend told the bank that though he is market leader in the segment, has a well recognised brand but frankly he doesn’t have any collateral to offer.The deal now seemed to be in soup.
But,all of a sudden the Bank itself suggested a way out.Bank offered to accept the brand of my entrepreneur friend as the collateral.
Everyone smiled and shook hands.
Now my entrepreneur friend is busy rolling out his expansion plans.
That’s the power of Branding.
5 Reasons why your business needs BRANDing.
- When you have a well known brand, customers prefer you over others.
- When people are familiar with your brand,you are free to charge more for your products and services.
- You are able to gain loyal customers.
- When you have an easily recognizable identity – whether it is your brand name, your logo or your product, your target audiences are able to connect with you instantly and it gives them a reason to buy from you.
- When you invest in your brand, it becomes easier for people to choose your business over your competitors.
And finally remember,if you managed to develop a good well recognised BRAND,the investment in your Brand can help you raise funds for your future expansion plans,as my entrepreneur friend realised,recently.
More on BRANDing,coming soon.Keep watching this space.