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MSME and India

Just general stuff, not trying to bore you to death! Lets say, its some basic stuff in the MSME sector at present. Good for some GK!

Attended the Zee Business Conference on SME and Emerging Business Forum yesterday which had prominent panel members from SIDBI, NSIC, IndiaMart, Managing Head of the Tirupur cluster and Minister for MSME Virbhadra Singh among others.

The main agenda for the panel discussion was to discuss the findings of the analysis Zee carried out by vising entrepreneurs and understanding the challenges faced by them across India. Availability of finance, acquisition of technology, retention of talent, challenges in marketing product/ services adequately were identified and discussed at length.

Schemes introduced by the government of India in collaboration with NSIC and SIDBI were discussed which help startups raise funds for cap/op ex and help in marketing and business intelligence.

Venture, debt and equity funding for startups was another topic of discussion highlighting how easy/ difficult it is to procure funds from banks and Angel investors for technology driven or manufacturing units talking about factors such as %ROI.

Gist of the discussion was that it is the time for MSME to grow into large organisations and the government in taking steps to see that this is achieved and that owing to the vast number of SME in the country, any organisation working for them can be assured a busy and rewarding time ahead.

- Roughly out of a million people who think of starting a venture, only about 20k go ahead and start one.
- Banks not willing to take a risk for startup's, and even if they provide a debt loan against collateral, there is no hand holding and advisory services for these entrepreneurs.
- Assessment of risk in a service providing startup was another factor identified for banks and institutions providing loans to them.
- VC funding only for technology related startups at present in India as VC's usually look for 50-100% growth rates as compared to returns of 10-15% on the manufacturing side.
- Discussion on more use of the SME exchange was done. Identified that only 1 company was listed on it since its inception last month.
- Angel network and SIDBI have tied up to provide upto a Crore of loan to entrepreneurs without collateral in which part equity stake will be with investors and an exit strategy in place for strategic investors, buyback by promoter or listing on SME exchange.
- Identified that NSIC facilitates workshops for entrepreneurs for branding, marketing, finance, business/market analysis and company creation among other services.
- Nearly 2Cr+ MSME present in India at present, and if 10 people considered / MSME, amounts to 20 Cr+ employed in the sector.

Do you have an idea? Do you want to be an Entrepreneur? Don't know where to go and how to start? Give me a shout, will guide you round the twisted corners of getting your own business running!

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