In the era of liberalization in the 1990s, India had the opportunity to jump into the production band instead of moving into the service sector. But India chose the latter. Currently, more than 50% of our GDP is based on service businesses, and about 17% has the support of the SME sector. Despite the explosion, including the devil, SMEs have achieved this fiscal year. Only manufacturing SMEs account for 7.5% of India’s GDP, and with the current government focused on manufacturing through campaigns like Make in India, there is enormous potential here. For any manufacturing company, 70 “75% In fact, Power2SME years old” online shopping platform in Gurgaon serves manufacturers to provide raw materials “broke even in November 2016, and have started making profits, they have reached Rs1,000 in revenue this fiscal year, what did this, small and medium businesses seem to be experiencing stronger growth, and in an interaction with videosix, R. Narayan, founder and CEO of Power2SME, describes how the SME sector has transformed in recent years and why it believes that the next decade would be best for small and medium-sized businesses. Copy of financial security For any manufacturing company, 70% of the cost is raw material, every 30-40 days, SMEs need some financing from suppliers to buy. and the capital of the sellers out of line A delay between 45 and 90 days. Banks and NBFCs lent up to Rs1 for them, with an average interest rate of 20%. Since Power2SME works with banks, SMEs receive interest rates of 13-15% when they approach banks through them. Banks do this in the form of digital data that provides reliable information to help them better and more quickly evaluate these SMEs. Power2SME of 50,000 users has been registered in Punjab, Rajasthan, Uttarakhand, Uttar states, Haryana, Delhi, Gujarat, Maharashtra, Madhya Pradesh, Tamil Nadu, Karnataka, West Bengal , Odisha and, more recently, Chattisgarh. He has added many products such as copper, zinc, fiber, as well as polymers and chemicals as required by customers. Since the demonization was announced, the SME segment “is like any other field.” affected. Narayan said: We have witnessed a decline in the space of SMEs. But small and medium businesses are likely to return quickly. Approximately 17% of India’s GDP comes from the SME sector. During November and December, the payment cycle is affected. While one party may have cash, the other may not. “This affects the entire process, at which point the payments took up to 60 days, it must be 30 years in a few months,” Narayan said. the front of the SMEs has a good change. a> Narayan explains, if you have 40 employees on your roll, and 200 temporary ones, the cash would be a problem (due to demonetization) .There is a withdrawal limit of Rs 2 lakh, “so the daily wage is difficult. therefore, SMEs will receive more permanent staff. At least half of the employees who do not work will be permanently employed and will be forced to open a bank account. Otherwise, there is no way to pay cash every day. Therefore, employees receive long-term benefits. No wallet Comfortable with B2B e-commerce. Even cars and safety equipment are being purchased online. B2C has led to a change in consumer behavior. So, do you know that you can buy steel also online? Narayan said. But digital transactions are not really beneficial for SMEs, since there are no wallets for them. Meanwhile, the limit of Rs 20,000 forced RBI is a problem, since it is not enough for the B2B business to be running at less Rs 5 crore per month. Digitization is still far away for SMEs. Not as B2C consumers borrow money easily, SME customers need larger loans. It has not yet been digitized, but it will start on July 1. Narayan said. Once GST is implemented, each transaction will begin to leave a digital trail. In B2B, transactions are not negotiated at Rs 8,000, but they are lakh and rupees croup in value. This digital trail will provide more opportunities for bankers. That would be a radical change in loans to SMEs. Will we try to promote the digital wallet among small and medium enterprises on a much larger scale in the next two or three months? Narayan added. He believes that MSMEs are the first to adopt that will optimize business performance and can compete on the international stage. R.Narayan, founder and CEO of Power2SME Loaded in GST Purchases a product from one state and sells the product in another state, since it They add many taxes to the cost. But all those additional taxes will be covered by GST. According to Narayan, SMEs will be, therefore, more profitable, or the competition will be updated and people will reduce prices. Both are good for the economy, ?? He said SMEs are quite advanced in terms of technology in financial accounting. The supply chain will also be digitized through GST. Narayan explained, SMEs can not afford not to pay for high technology. Because if they can not comply with GST, they will have to close the business. ?? He suggested that MSMEs organize special GST workshops for SME players to understand the different aspects of the next bill and the types of technological tools / solutions needed to comply with GST. Expect budget From the 2017 Alliance budget, Narayan plans to use discounted data, transaction costs. Lower for digital payments and lower taxes for companies with less than Rs 2. He expects the Micro Capital Development Unit (MUDRA) to advise small and medium enterprises on how to optimize their existing financial resources. According to Narayan, the biggest problem faced by SMEs is delays. In general, people take 90 days to pay, instead of paying 45. Rebound controls require two years of arbitration to be resolved. Should the government guarantee that the referee will be done in 60 days? He said SMEs may not be as attractive as startups, but they certainly are not. .
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