News Developments

An Archive of News and Developments

Tag Archives: Indian Small Businesses

IFC Report on Guidelines for Profitable SME Banking in Developing Countries

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SME Banking Knowledge Guide by IFC provided certain guidelines for helping banking industry in developing countries. It helps in designing successful strategies and products for small and medium enterprises.

There had been many transitions in SME banking. There are more emerging market banks which helped in developing and creating SME units. There was a rise of 271 percent of IFC’s committed portfolio of investments in SME financial institutions over the last five years which was amounted to $6.1 billion as of end of the fiscal year 2009.

Success factors for SME banking operations with profit are given in the publication of IFC. It also provided certain steps to be taken by bankers in the developing world for implementing a robust SME banking strategy. It also gave tips for financial services providers to develop and expand their SME operations. Importance of access to financial services for these economically important small and medium enterprises was also explained.

More than 90 percent of registered companies in the world accounted for small and medium enterprises. These were found to be an economically important sector in almost every country. Economic growth and job creation were the most important characters of SMEs.

It is necessary for SMEs to depend on financial services in order to meet their capital needs. However, it was thought that high credit risk and services costs were presented by SMEs. It was found that SME banking operations could be improved by right focus, specific products and better use of innovative lending technologies.

Filed under SMB's
Feb 15, 2011

Know About Small Business in India

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According to the Indian Franchise Association, about 95% of the industrial units in India are Micro, Small and Medium Enterprises (MSME). A growth of 4.1 per cent was observed annually producing thousands of products. It was found that in 2006-07, there were about 128.44 units of MSMEs.

The contribution of the MSME sector to the GDP of the country was found to be 8 percent. According to estimations of UNIDO, about 90 percent of all enterprises in the world are SMEs providing 80 to 90% percent of total employment. The number of companies in SME sector were found to be greater than 95% in the entire Asia Pacific, 99% in Japan, 99.7% in Singapore, 96% in Malaysia, and 97% in the U.S.

With the increase in population in India, there is a need in increase of economy by the proliferation of free enterprises and entrepreneurial opportunities. There was a rise in business possibilities and innovation in India which lead to the entry of more enterprising people into the market arena.

It was estimated that with a possible annual per capita income of Rs. 50,000 there would be a real GDP growth of 8-9 per cent by 2012. It was also found that there would be a four-fold growth between 2005-06 and 2013-14 in the number of households with greater than Rs.12 lakh annual income.

Filed under SMB's
Feb 8, 2011

Indian Small Businesses Boost by eTailing

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The advanced wave of retailing called ‘e-tailing’ was one of the solutions started by retailers. E-tailing is nothing but selling of goods on internet. It can be synonymous with business-to-consumer transaction. E-tailware includes software tools for creating online catalogs and managing the business connected with doing e-tailing.

Many big retailers set up stores across the country as they have enough money. But a small business cannot have many stores. In order to increase the sales of small retailers, e-tailing can be a better solution. However, some small businesses do not have much technology to use e-tailing. But it is advantageous to use e-tailing which helps in expanding the reach of the business across the country.

Many big retailers concern mainly on the brand on the internet. But small businesses try for lead generation and business. It is very beneficial for small businesses to use e-tailing. A variable cost channel is offered by online medium. It may range from Rs. 100 to Rs. 1 lakh based on the capacity to afford. The investment can also be done in step wise phases.

The overall market for e-commerce market including e-ticketing, travel, utility and entertainment, was growing at a rate of 30 percent every year. The market for e-tailing was at Rs. 2,000 crore and had been increasing its growth by 50 percent every year. The adoption of e-tailing in small businesses was also increasing at a faster rate.

Filed under SMB's
Feb 8, 2011