Milagrow’s Journey……
    Consulting with a Difference.




                      Knowledge Division.




                 ...
During the Course of our Journey we realized that we cannot just be bystanders in
                              National S...
The 1st World SME Conference
              Supported by The Ministry of MSME


        More than 250 Delegates from around...
Sickness and Rehabilitation of MSMEs in India
MSME Cluster Study


                   Involving 3000 MSMEs in 4 States


Almost 100% of all the firms outside the metros...
Government Backed Initiatives and MSME progress in India
Which Brings Us To….
Raison d'être
     Global Forum for all stakeholders in the SME Universe
           with the support of the Ministry of MS...
Raison d'être (contd.)


     Helping Entrepreneurs and SMB Owners Explore New
                   Business Opportunities

...
Theme
   MY WAY, MY VISION: From Giant Ideas to Giant Corporations

‘My vision’ will see Government bodies,     Corporate ...
What Awaits you at the Conference….
   Insightful talks from SME experts on Industry best practices


    Panel discussion...
What Awaits you at the Conference….
         Master Classes to Empower Your Business


               Unique Case Studies ...
What Awaits you at the Conference….
                Release of Path Breaking Studies


                     An Industry Re...
Eminent Speakers




    Will share their vision as to how MSMEs must develop
                     in the coming decade.
Eminent Speakers




         Mr. Dinesh Rai             Dr. H P Kumar
      Secretary, Ministry of MSME     CMD, NSIC



...
Eminent Speakers




         Dr. Jagdish Sheth               Prof Anil Gupta
       Charles H. Kellstadt Professor   Exec...
Mr. Harry                Mr. Raman Roy             Mr. Sanjeev
Brelsford                CMD, Quattro BPO          Bikhchan...
Mr. Rajeev                         Mr. Suhel Seth                      Mr. Anurag Batra
    Karwal                        ...
Mr. Sameer                            Ms. Bala                                 Mr. K G Alai
  Kaul,                       ...
Dr. C.S. Venkat                      Dr. B.S. Sahay                        Dr. Anwar Ali
    Ratnam                       ...
Spreading the Word
      SMEs collectively are the powerhouse of the Indian
                           Economy

        Ho...
Agenda
 Challenges faced by Indian MSME Sector

 Countries and Areas of focus

 Best Practices & Recommendations for India...
Challenges faced by Indian MSME Sector
 Inadequate financial support

 Inability to promote their products & services in d...
Countries & Areas of Focus
European Countries
               Finland                        Germany                             Italy


• 99.7% indus...
North & Latin American Countries
               Argentina                          Brazil                          Canada
...
Areas of focus
 Funding Structure

 Technology Upgradation Assistance

 MSME Policy Framework

 Role of Supporting Organiz...
Best Practices & Recommendations
Funding Structure: Priority Sector Lending

Best practice prevails in                                 Current Policy in In...
Funding Structure: Credit Guarantee Lending

Best practice prevails in                                   Current Policy in...
Funding Structure: Access to Bond Markets

Best practice prevails in                                    Current Policy in ...
Funding Structure: Reciprocal Guarantee Societies

Best practice prevails in                                   Current Pol...
Funding Structure: Equity and Management Capital

Best practice prevails in                                   Current Poli...
Technology Upgradation: Access to Foreign Technologies

Best practice prevails in                                 Current ...
Technology Upgradation: Assistance from Large Firms

Best practice prevails in                                     Current...
Technology Upgradation: e-Governance & e-Procurement

Best practice prevails in                                     Curren...
Technology Upgradation: Low cost ICT solutions

Best practice prevails in                                  Current Policy ...
Technology Upgradation: Support for R&D

Best practice prevails in                                 Current Policy in India...
MSME Policies: Cluster competitive programme

Best practice prevails in                                    Current Policy ...
MSME Policies: Support for New Exporters

Best practice prevails in                                 Current Policy in Indi...
MSME Policies: Effective Implementation of Schemes

Best practice prevails in                                     Current ...
MSME Policies: Offsets in Government Procurement

Best practice prevails in                            Current Policy in I...
MSME Policies: Encouragement for Green Businesses

Best practice prevails in                                Current Policy...
Role of Supporting Organizations: Effectiveness

Best practice prevails in                                Current Policy i...
Role of Supporting Organizations: PPP Model

Best practice prevails in                                  Current Policy in ...
Infrastructure: Incubators’ Assistance on Softer Aspects

Best practice prevails in                                 Curren...
Marketing Assistance: Advertisement & Promotions

Best practice prevails in                                 Current Policy...
Training & Development: Programs for Common Needs

Best practice prevails in                               Current Policy ...
We Would Like To Thank Our Sponsors
We Would Like To Thank Our Sponsors
We Would Like To Thank Our Sponsors
We Would Like To Thank Our Sponsors
We Would Like To Thank Our Sponsors
We Would Like To Thank Our Sponsors
g   hank

      l    ou


                57
Curtain Raiser for The Milagrow World SME Conference '09
Curtain Raiser for The Milagrow World SME Conference '09
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Curtain Raiser for The Milagrow World SME Conference '09

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Milagrow Business and Knowledge Solutions conducted a Curtain Raiser Ceremony for its upcoming World SME Conference '09.

This presentation, on the what awaits everyone at the conference and the path breaking study released jointly by Milagrow & IMT, Ghaziabad, was shared with the press that had gathered on the occasion.

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Curtain Raiser for The Milagrow World SME Conference '09

  1. 1. Milagrow’s Journey…… Consulting with a Difference. Knowledge Division. Capacity Building. MSME Services.
  2. 2. During the Course of our Journey we realized that we cannot just be bystanders in National SME Affairs. We wanted to create a truly global, bias free, forum for SMEs not just in India but for the World A forum which brings together all the stakeholders of this space and exposes SMEs to global standards in people, processes and technology And so was born…….
  3. 3. The 1st World SME Conference Supported by The Ministry of MSME More than 250 Delegates from around the World 60 Thought Leaders from Government, Industry, Academia and Associations 20 Industry International Speakers Representing 12 Countries Including 20 Partners and 40 Media Partners Promoted the Event Release of SME Studies and Policy Recommendations for The Government and Large Enterprises
  4. 4. Sickness and Rehabilitation of MSMEs in India
  5. 5. MSME Cluster Study Involving 3000 MSMEs in 4 States Almost 100% of all the firms outside the metros are either unaware or haven’t benefited from any initiative of their representative apex bodies. Over 75% of all the firms report an attrition rate of over 25%. 75 – 80% of all the firms do not have any quality certification
  6. 6. Government Backed Initiatives and MSME progress in India
  7. 7. Which Brings Us To….
  8. 8. Raison d'être Global Forum for all stakeholders in the SME Universe with the support of the Ministry of MSME.
  9. 9. Raison d'être (contd.) Helping Entrepreneurs and SMB Owners Explore New Business Opportunities Leveraging Low Cost Solutions to Empower Their Business Examining the Role of Government, Industry, Associations in promoting SME Development
  10. 10. Theme MY WAY, MY VISION: From Giant Ideas to Giant Corporations ‘My vision’ will see Government bodies, Corporate India, represented by SME Associations and other some of the biggest corporate stakeholders in the SME eco-system entities in the nation, will share describing their vision for the future of success stories on how companies SMEs in India. were built from grassroots to global giants’ status in ‘My Way’
  11. 11. What Awaits you at the Conference…. Insightful talks from SME experts on Industry best practices Panel discussions on Critical Issues faced by SMEs today IT solutions for MSMEs: Lip service or real solutions Developing an Entrepreneurial Eco-System in India Marketing on a Shoestring Collaborating and Competing with Foreign Partners Innovative Sources of Funding Opportunities During the Slowdown
  12. 12. What Awaits you at the Conference…. Master Classes to Empower Your Business Unique Case Studies in Talent Development Solutions MOST© Unique Case Studies in Lean Manufacturing
  13. 13. What Awaits you at the Conference…. Release of Path Breaking Studies An Industry Reckoner Report Trend of efficacy of Government MSME policies in India Comparison of MSME policies across the Indian states Procurement provisions for MSMEs by nations across the globe Best Practices for MSME development from Europe, North and Latin America
  14. 14. Eminent Speakers Will share their vision as to how MSMEs must develop in the coming decade.
  15. 15. Eminent Speakers Mr. Dinesh Rai Dr. H P Kumar Secretary, Ministry of MSME CMD, NSIC Will expand on the role of government in the development of the MSME Space
  16. 16. Eminent Speakers Dr. Jagdish Sheth Prof Anil Gupta Charles H. Kellstadt Professor Executive Vice Chairman, of Marketing, Goizueta National Innovations Business School, USA Foundation Will share their perspective on the growth of the Indian & Global SME Sector
  17. 17. Mr. Harry Mr. Raman Roy Mr. Sanjeev Brelsford CMD, Quattro BPO Bikhchandani CEO, SMB Nation Solutions CEO, Naukri.com Mr. Rajesh Jain Mr. Saurabh Mr. Pradeep Founder & MD, Srivastava Gupta NetCORE Chairman, CA India Chairman, CyberMedia Mr. Scott Ni Mr. Anil Mr. Vinnie Director of Global Srinivas Mehta Sales, Alibaba.com Head – Marketing, Executive Director, SMB, Dell India MAIT Would talk about IT solutions required for MSMEs and how technology can be used as a big leveller.
  18. 18. Mr. Rajeev Mr. Suhel Seth Mr. Anurag Batra Karwal CEO, Cousellage CEO, Exchange4Media Founder, Milagrow Mr. Dilip Ms. Meena Mr. Ishan Raina Cherian Kapoor CEO, OOH Founder Partner, CEO, Astroyogi.com Perfect Relations Ms. Meenakshi Mr. Harish Madhvani Bhatia, Managing Partner, Business Head, MY Access Media FM Solutions Will introduce the gathering to “marketing on a shoestring”, digital media solutions and effective media buying to build strong brands
  19. 19. Mr. Sameer Ms. Bala Mr. K G Alai Kaul, Deshpande Chief General Manager MD, Head Branch Senior Managing North, SIDBI Banking, Global Director, NEA Consumer Group, Citibank Ms. Padmaja Mrs. Ranjana Ruparel, Kumar, Vigilance President, Indian Commissioner, Angels Network Central Vigilance Commission, Formerly Chairperson NABARD Will explore innovative sources of funding for MSMEs in India
  20. 20. Dr. C.S. Venkat Dr. B.S. Sahay Dr. Anwar Ali Ratnam Director, Management Director, Institute of Director, International Development Institute Management Management Institute Technology Dr. Harivansh Ms. Arnavaz Chaturvedi, 'Anu' Aga, Director BIMTECH Former Chairperson, Thermax Will deliberate on training and readiness of the Indian managerial and technical workforce
  21. 21. Spreading the Word SMEs collectively are the powerhouse of the Indian Economy However for them to evolve into globally competitive organizations they need to be exposed to global best practices The World SME Conference is there to fulfill this goal To truly make this endeavour a grand success we need your help in spreading the word. To commemorate the World SME Conference we would like to share with you certain findings and policy recommendations from the 1st Path Breaking Study from Milagrow IMT Center of MSME Excellence
  22. 22. Agenda Challenges faced by Indian MSME Sector Countries and Areas of focus Best Practices & Recommendations for Indian Policy Makers
  23. 23. Challenges faced by Indian MSME Sector Inadequate financial support Inability to promote their products & services in domestic & international markets Lack of support from Government organizations, large enterprises, etc. Lack of appropriate need-based training and development programs Lack of knowledge about low-cost brand communication solutions Unavailability of latest news, trends and technologies Lack of adequate networking opportunities Poor knowledge management
  24. 24. Countries & Areas of Focus
  25. 25. European Countries Finland Germany Italy • 99.7% industries are • 99.7% industries are • Supports long-term MSMEs, accounted for MSMEs, accounted for policies & development 61.5% employment & 70% employment in through strategic plans 52% of turnover economy for MSMEs • Top ranked country for • Innovation driven culture • Availability of huge supporting entrepreneurs in MSMEs supported by funding resources & extensive R&D technological support Spain Sweden UK • MSMEs account for • Government is • Big role of Government almost 80% of supportive in investing in implementing MSME employment, 62% of huge funds in supportive policies in sales and 50% of development of MSMEs country to develop the exports in the economy which industry also reflects in funding of R&D efforts of small business
  26. 26. North & Latin American Countries Argentina Brazil Canada • Private sectors plays an • Strong penetration of • MSMEs account for 45% important role in ICT in MSMEs GDP, 60% jobs & 75% of development of MSME net employment growth • Important role of • Business regulations have supporting organizations • OMSME, the supporting been largely simplified for like Sebare & Apex organization plays an the MSMEs accountable & not just a responsive role Mexico USA Venezuela • Role of Government in • MSMEs contribute to • Important role of Infrastructure more than 50% GDP & supportive organizations development, training, 40% workers are skilled in the development of technical assistance to MSMEs MSMEs to enhance their • Policies are supportive of workers’ productivity and funding, marketing & welfare women entrepreneurs’ development
  27. 27. Areas of focus Funding Structure Technology Upgradation Assistance MSME Policy Framework Role of Supporting Organizations Infrastructure Development and Marketing Assistance Training and Skill Development Programs
  28. 28. Best Practices & Recommendations
  29. 29. Funding Structure: Priority Sector Lending Best practice prevails in Current Policy in India US Indian MSMEs contribute 40% or thereabouts to industrial economic activity whereas their share of credit is around 10%. Most public sector banks do not even accomplish their MSME lending targets Findings Recommendations Obama Administration wants lending to small businesses to be reserved at a much higher levels Reserve 20% lending for MSMEs: Government than the already existing levels. must make it mandatory that like agriculture, the MSMEs must have atleast a 20% quota out of the total 40% priority sector lending quota. On an average, banks with more than $1 billion in assets typically devote about 21% of their commercial loan portfolios to small business loans Recognize credit rating for easier credit: The while, community banks with less than $1 billion in commercial sector banks must recognize the assets devote 56%. government-approved credit rating agencies and disburse faster and cheaper credit with much lesser documentation.
  30. 30. Funding Structure: Credit Guarantee Lending Best practice prevails in Current Policy in India US Italy MSMEs have to go through a lengthy process for placing loans requests. CGTMSE in India gives only 75% guarantee on Findings MSME lending and charges 1.5% as the fees Italy’s credit guarantee system takes the help of private funds and implements a 3 layer system, Recommendations which helps in dividing the responsibility clearly in Disburse collateral-free credit faster: CGTMSE different levels. The Mutual Guarantee Institution, must work with the public & private sector banks, & Banks & Government work together and credit the government organs at the centre & the state, to guarantee is as high as 80% for direct lending & ensure that collateral free credit is disbursed faster 90% for MGI lending . The fee is minimally less at about 0.125% Raise collateral free limit: Upto 100% collateral free credit for highest credit-rated MSMEs and at a In US, the Small Business Administration works in minimal fee of less than 1% upto Rs. 1 crore. tandem with the Treasury Department and plans to increase the maximum size of its guaranteed loans Treat CGTMSE loans differently: CGTMSE must for small businesses from $ 2m to $5m. make the norms for declaring a loan as NPA by Member Lending Institutions easier & transparent, so that they are not dis-incentivized.
  31. 31. Funding Structure: Access to Bond Markets Best practice prevails in Current Policy in India Italy MSMEs in India have no access to international capital-market bonds Findings Recommendations Government facilitates access to international Recognize credit rating: The Ministry of MSME capital market for MSMEs and the CGTMSE must recognize the credit rating given by the credit-rating agencies The financial structure is rebalanced through long maturity bonds Facilitate access to international capital markets: CGTMSE should provide assurance Low-cost and collateral-free credit is extended against default for issuance of international capital- market bonds for the highest credit-rated MSMEs. The bonds such issued will come in without any collateral and at a much cheaper rate than the PLR in the traditional lending system
  32. 32. Funding Structure: Reciprocal Guarantee Societies Best practice prevails in Current Policy in India Argentina The loans are disbursed to MSMEs as per their existing credit ratings Findings No organization exists which can guarantee the improvement of credit rating of the borrower and thereby get the loan disbursed at a lower cost Reciprocal Guarantee Societies (RGSs) issue certificates to improve the creditworthiness of Recommendations MSMEs These certificates enable the MSMEs to seek loans Assist MSMEs to improve their credit rating: from the banks at rates applicable for better credit- Reciprocal Guarantee Societies must be set up, rated organizations may be even through Industry Associations with good track record The RGSs ensure that the credit rating of the borrowing MSME improves within stipulated time RGSs must work towards improvement of credit- worthiness of the MSMEs, even as they ensure that They also offer advisory and technical assistance to they are not deprived of cheaper loans when they MSMEs and foster their partnerships with banks need it the most.
  33. 33. Funding Structure: Equity and Management Capital Best practice prevails in Current Policy in India Brazil Canada Presently, the private & state-government venture funds as well as other organizations like SIDBI provide equity financing only Findings Recommendations Canadian venture capital industry plays a major role Mentoring & hand-holding MSMEs: The in extending not just equity but even managerial organizations like SIDBI, State Government venture support and other resources to the MSMEs funds, etc. must not only fund the MSMEs with equity financing but also provide sufficient hand- Brazil has implemented a “New Ventures Program” holding and implementation help through private along with World Resources Institute, which aims to partnerships build competitiveness and promote long-term sustainability by providing skill-development, social networking and environmental benefits to the MSMEs.
  34. 34. Technology Upgradation: Access to Foreign Technologies Best practice prevails in Current Policy in India Italy Indian MSMEs do not get a platform where they can network with MSMEs from other countries and get an access to newer and affordable technologies Findings Recommendations Italy is a member of PIN-SME association, which Provide opportunities for international brings together several small technology partnerships: For the industries/ clusters, where businesses on a single platform Indian MSMEs have an inherent competitive edge, the Ministry of MSME should create platforms through institutions like NSIC or even private MSMEs in Italy benefit as they get an access to the partnerships where they can network with MSMEs newer technologies at affordable rates from the from other countries. member countries This will not only provide an opportunity to Indian MSMEs of member countries are also able to gain MSMEs to gain access to latest low-cost access to EU-funded projects technologies, but will also enhance foreign trade
  35. 35. Technology Upgradation: Assistance from Large Firms Best practice prevails in Current Policy in India Italy No effort or long term strategic plan for encouraging large enterprises to assist and mentor small businesses Findings Recommendations National Strategic Framework (NSF) 2007-2013 in Involve large enterprises in development of Italy focuses on : MSME clusters: The Ministry of MSME in India should implement a long-term strategic plan and facilitate MSMEs to build long-term relationship with Instituting long term relationship between large large enterprises & research supply institutes enterprises & MSMEs Enhancing dialogue between the research The Ministry of MSME, through PPP model, must sphere and the small businesses incentivize the larger organizations in adopting clusters which are mainly into B2B/ ancillary business, to improve their technology absorption
  36. 36. Technology Upgradation: e-Governance & e-Procurement Best practice prevails in Current Policy in India Brazil No e-procurement & trade data management system available Findings Unavailability of online information and processes for legal jurisdictions e-Procurement facilities including online certification is available Recommendations Online alerts are sent to MSMEs whenever new e-Governance & e-Procurement, a must for business opportunities arise easier compliance: Online mechanisms should be provided to MSMEs to carry out all the necessary Has a complete electronic trade data-management transactions for conducting business in domestic system and international markets As a part of the e-Governance initiative, all the Online access to rules and regulations, electronic information related all policy changes, trends & new methods for registration and electronic applications technologies is available online for government schemes, certificates, licenses and realization of incentives should be provided to the MSMEs
  37. 37. Technology Upgradation: Low cost ICT solutions Best practice prevails in Current Policy in India Brazil Lack of knowledge about low-cost Information & Communication Solutions, which leads to loss of opportunities Findings Recommendations Brazil has SME Metasys, which has the objective to Promote low-cost ICT solutions: The Ministry of provide MSME with a complete and low cost ICT MSME in India should facilitate MSMEs in procuring solution specially designed to improve their complete and low-cost ICT solutions to improve efficiency. their capacity and productivity. This robust solution, which uses open source Awareness of these tools should also be increased software and does not require special skills for its among the MSMEs installation and operation.
  38. 38. Technology Upgradation: Support for R&D Best practice prevails in Current Policy in India Italy UK No Government policy to include national technology excellence centers for the training & technical assistance to MSMEs Findings Recommendations In Italy, Science & Technology Parks, Business Create and promote an innovation and R&D Innovation Centers, Integrated Centers for culture: The Government sector institutions at the Entrepreneurship Development and Incubators cutting edge of research and innovation can be support innovation and transnational technology opened up for use by MSME innovators, who transfer with MSMEs otherwise struggle in getting funding and technology to convert their ideas to successful product launches. in UK, tax relief is available to MSMEs, who invest in research and development (R&D) under the MSME scheme A method may be designed where the cost of such research help can be offset by taking a percentage of the successful projects through royalties, even as the IP belongs to the innovator MSME.
  39. 39. MSME Policies: Cluster competitive programme Best practice prevails in Current Policy in India Italy No effective cluster competitiveness programme which can focus on providing value-added end-to- Findings end solutions. Division of labour between the different firms within Recommendations the same local context comprising of large number of firms individually specialized in just one or a few Develop integrated cluster competitiveness stages of the production process, in a reciprocal programs: The cluster competitiveness program arrangement and at the same time competing in the should be revamped. Rather than giving the market with finished products. authority of these clusters to associations, which may or may not be competent, it should be given to These reduce the cost of production due to bodies, which understand the value chain of the standardization of components and technologies in respective industry. the same/ similar sectors These bodies must provide end-to-end solutions, Extensive availability of productive resources which are benchmarked globally in terms of (technical skills) at the local level make these competitive technology and effective training. clusters competitive in the international market.
  40. 40. MSME Policies: Support for New Exporters Best practice prevails in Current Policy in India Argentina Monetary support is available for the new exporters but nothing in terms of educating, training and assisting MSMEs in designing the export plans Findings Export policies are designed to guide & encourage Recommendations the development of sectoral partnerships. Enable and then subsidize: Special training Technical assistance is provided to assist in should be extended to the MSMEs, who enter the designing and implementing export strategies. international trade to avoid any problems during the process. Only the MSMEs which undergo these In “Support for New Exporters” programme, the programs should be offered subsidies for foreign MSME Under-secretariat provides advice to travel required for trade and export promotion MSMEs located throughout the country on launching export operations including analyzing and diagnosing problems, training, and tutorials for designing and implementing a strategic export plan.
  41. 41. MSME Policies: Effective Implementation of Schemes Best practice prevails in Current Policy in India US In the past, Ministry of MSME has launched several policies and schemes for the benefit of the MSMEs. However, no reports are available in the public domain which informs about their reach and the effectiveness. A study conducted recently by Milagrow showed that 70-80% MSMEs are still unaware of the existing schemes provided by the Ministry. Findings Recommendations US legal framework promotes transparency in Measure the effectiveness of the policies: The contracts, protection of intellectual property, and the Ministry of MSME should implement and measure regulation of fraud. The U.S. Small Business the effectiveness of its various schemes at the Administration ranks as one of the most effective ground level through third-party organizations public sector agencies in the world for the promotion of MSMEs.
  42. 42. MSME Policies: Offsets in Government Procurement Best practice prevails in Current Policy in India Germany US Canada No offset has been provided by Indian Government till yet. Although, a proposal in this respect has been made Findings Recommendations The offsets provided by different countries to Provide reservation for procurement from the MSMEs in government procurement MSME sector: Offsets should be provided to the MSME sector in the procurement done by the Canada: 43% government and public sector units Germany: 35% To determine the exact offset that should be provided to MSMEs, another comparative study is being done by Milagrow to analyze the procurement United States: 33% policies of nations across the world. The study will be released shortly
  43. 43. MSME Policies: Encouragement for Green Businesses Best practice prevails in Current Policy in India Sweden No policy related to encourage MSMEs which are involved in doing eco-friendly businesses Findings Recommendations Sweden focuses on the environment driven business development. Encourage Environmental Compliance at an early stage: The Ministry of MSME should The design for environment has been successful encourage those MSMEs, which are involved in and has resulted in 13 projects through the clean and green businesses by providing enhanced participation of 122 MSMEs subsidies than available to large business. 7% MSMEs have comprehensive systems for Stringent norms should be implemented to analyze energy saving in Sweden as compared to 4% in EU. the working of the MSMEs and incentives should be provided to them to develop and sustain their operations and products 50% MSMEs apply at least simple energy saving measures as compared to 29% for the EU
  44. 44. Role of Supporting Organizations: Effectiveness Best practice prevails in Current Policy in India Brazil Canada In India, the goals and targets of supporting organizations are neither highly specific nor monitored effectively According to a recent study conducted by Milagrow, “More than 97% acknowledge or choose to avoid giving direct answer on corruption & bribery” Findings Recommendations In Brazil, the supporting organizations work on Government Funded Support Organizations effectiveness measurement along with Government must have effectiveness targets measured by a third party: The supporting organizations should Office of Small and Medium Enterprises, in Canada, effectively work on specific targets and their working is working within the government to ensure the should be transparent. procurement system treats MSMEs fairly The effectiveness of these organizations should also be based on the feedback from the MSMEs in the respective areas through a third party.
  45. 45. Role of Supporting Organizations: PPP Model Best practice prevails in Current Policy in India Brazil All the supporting organizations are mainly controlled by government officials or the organs of the government and the Ministry Findings Recommendations In Brazil, APEX & SEBRAE are two organizations Encourage PPP to develop the MSME Sector: To which are private and have taken responsibility from enhance the performance and effectiveness of the Government in their respective sectors through an supporting organizations in the MSME sector, the act of law and are functioning only for MSME Ministry should establish a Public-Private development. Partnership model SEBRAE is a private sector non-profit organization focusing on the SME development. It is a union of public sector and private sector and Brazil’s main fostering and research entities. Its been created by law and the Govt. and the business community have come together for common purpose.
  46. 46. Infrastructure: Incubators’ Assistance on Softer Aspects Best practice prevails in Current Policy in India Brazil The incubators hardly exist in India and those which do, mainly focus on providing meager infrastructural resources only Findings Recommendations With approximately 400 incubators and a well- Encourage Incubation with best in class developed incubation ecosystem, Brazil leads one practices: The incubation centers set by the of the most successful incubation movements in Ministry of MSME should extend support on the Latin America, through innovation and adaptation of softer aspects, to the MSMEs beyond the incubator models to suit indigenous needs. infrastructural resources, like networking & management assistance, etc.
  47. 47. Marketing Assistance: Advertisement & Promotions Best practice prevails in Current Policy in India Brazil More focus on quality and export orientation than promoting/ selling the products in domestic markets Findings Recommendations In Brazil, the supporting organization Apex assists Incentivize promotion of MSME products the MSMEs to market their products and services. through organizations like DAVP: The Ministry of MSME should incentivize organizations who advertise MSME dedicated channels & programs. Apex has also launched a portal, which is dedicated It must also use the clout of DAVP to get special to promote MSME products only. media buying rates for MSMEs. SEBRAE, in Brazil, has 6 channels, which are dedicated to the MSME sector. These channels show MSME focused programs &news and also provide TV advertising options to MSMEs at special rates.
  48. 48. Training & Development: Programs for Common Needs Best practice prevails in Current Policy in India Mexico Mainly tool-room based technical training is provided. Findings Some quality-development training has been proposed but not effectively implemented yet. Government of Mexico has implemented a program Recommendations that provide subsidized training and technical assistance to SMEs. Provide best in class training and have an industry and ‘management function’ wise plan: It starts with analyzing the constraints faced by Similar structured and need-based training MSMEs & then come out with a comprehensive programs with constant feedback and control package of integrated training & business support mechanisms should be implemented by Ministry of services required. MSME to check the effectiveness They involve best in class organizations in The Ministry should also facilitate training programs identification of training needs, management and for newer technologies and best practices, which then executing the training programs. are undertaken by large organizations to enhance their productivity and competence.
  49. 49. We Would Like To Thank Our Sponsors
  50. 50. We Would Like To Thank Our Sponsors
  51. 51. We Would Like To Thank Our Sponsors
  52. 52. We Would Like To Thank Our Sponsors
  53. 53. We Would Like To Thank Our Sponsors
  54. 54. We Would Like To Thank Our Sponsors
  55. 55. g hank l ou 57

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