Finance: Finance is the
most crucial part of a business, from planning, capital to returns on
investments, every phase it is a necessity and financial planning is a major
challenge most of the MSMEs face. Even when it comes to the credit,
insufficient collateral is an obstacle every owner must cross.
Government
Aid:
Credit
Guarantee Trust Fund for Micro & Small Enterprises (CGT SME) – Collateral
free loan up to 100 lakhs. Interest Subsidy Eligibility Certificate
(ISEC) – credit at a concession of 4% p.a for working capital
Raw
Material:
The major concern comes with the purchase of raw materials, the funds for the
purchase and high cost. The administration work involved to get a credit only
delays the work and the quality of the raw material can also be a downfall.
Government
Aid:
NSIC – Raw Material Assistance Scheme with credit facilities, bulk purchases
and discounts and documentation for credit covered by the scheme.
Idle
Capacity:
Any resource shortage would lead to idle capacity. Be it labour, machinery
maintenance, raw material supply and/or electricity. An industry must plan and
work its way to achieve maximum utilization by making optimum use of the
available resources which most of the industries fail to achieve as most of the
MSMEs fall under, ‘Under Utilisation of Capacity’ bracket.
Government
Aid:
Ministry of Communication and Information Technology came up with Capacity
building scheme – Specialised training, setting up of a central Capacity
Building Management Cell for coordination and implementation of the scheme.
Technology:
With the launch of IoT automation, robotics, censored machineries and many
other technologically advanced systems has taken a boom. But due to
insufficient knowledge, insufficient funds to upgrade about the technological
advances most of the MSMEs still follow the old school method for production to
packing resulting in under production, wastage of time, resources and products
fail the quality checks.
Government
Aid: Development Commissioner (DC – MSME) has launched
‘Credit Linked Capital Subsidy Scheme for Technology Upgradation – Facilitates
15% up-front capital subsidy for technology upgradation.
Technology and Quality Upgradation Support to MSMEs
Marketing:
Rise of Industrial segment affects the new and already established business
when it comes to marketing. To find a customer, find the target audience,
retaining the valuable customer, to stand out among other competitors to make
the product be seen in the market is an enormous challenge. Competition does
not spare any size of business and can dwindle sales massively.
Government
Aid: NMCP comes up with Marketing Support/ Assistance
to MSMEs.
Marketing Assistance Scheme – Financial assistance
in Co- sponsoring up to 40% (5 lakh) and exhibitions, financial assistance up to
95% travel and accommodation for entrepreneurs.
Infrastructure:
Poor Infrastructure is the key cause for Industrial backwardness especially in
remote areas. Infrastructure facilitates smooth running of business in
production, distribution, quality control and absence of these infrastructure
act as barrier in growth. Access to transport, water supply, electricity,
skilled labour increases the production speed and enhances quality.
Government
Aid: Scheme for development of industrial
infrastructure for MSME sector – financial support for the development.
Strengthening the infrastructure for EDIs under ATI
scheme - Maximum assistance for creation or strengthening of infrastructure
will be Rs.150 lakhs on matching basis, not exceeding 50% of project cost.
SolutionBuggy is
an exclusive and dedicated platform for the Manufacturing Sector in India. It
seamlessly bridges the gap between the industrial sector and professionals for
on-demand consultation and services including projects. It connects SMEs and
Large Scaled Industries with Industrial Consultants/ Experts and Industrial
Product Suppliers over the internet for collaboration and success.
It is an integrated platform wherein industries can
share their issues/ problems and post requirements; consultants/ experts can
showcase their capabilities and offer services and solutions and suppliers can
list their products to match the industry requirements.
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