In India, the preferred mode of finance is either self or other sources. This further complicates the situation, as with these sources an enterprise cannot challenge the increasing competition
This is a document that covers the MSME financing in India. It explores the financing sources and problems in India. It talks about working capital financing via factoring and reverse factoring, cluster financing, Germany's cluster financing, listing looking at alternativa model of listing of ventures, and Thailand's SME bond markets. It also covers the need for policy redefinition of MSMEs and policy support required.
This report has been prepared by Deloitte Touche Tohmatsu India Private Limited (DTTIPL) as part of the project on Organizational & Structural Review of MSME-DIs commissioned by the office of the DC, MSME in association with Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and is in continuation of the “analysis report” prepared earlier. This report, therefore focuses mainly on “recommendations and implementation plan”.
MSME Financing - FINANCING MSME’S IN INDIA - Part - 7Resurgent India
Finance is life blood of any enterprise. But Indian MSMEs have always suffered the deficiency of this life blood, despite India having one of the most extensive banking networks in the world.
The present domestic market conditions do not provide enough opportunities for the MSME sector for raising low cost funds. To improve the flow of credit there is a need to provide low cost finance to the MSME sector, which has limited working capital and is dependent exclusively on finance from public sector banks. The cost of credit in the Indian MSME sector is higher than its international peers.
Empowering MSMEs - Challenges in MSME Financing - Part - 4Resurgent India
Lack of Experience Entrepreneurs of first generation with lack of experience, has been revealed as the foremost reasons of poor SME credit, followed by lack of collaterals & infrastructure put together 26% and poor financials of SMEs by 24% respectively.
Empowering MSMEs - Overall Flow of Finance to the MSME Sector - Part 1Resurgent India
Major reforms for the MSME sector have taken place in the form of introduction of schemes which have benefitted the flow of credit to the sector Working with the assumption that all finance demand by the MSME sector is met by either formal or informal sources, the estimate for overall supply of finance to the MSME sector is INR 32.5 trillion ($650 billion).
This is a document that covers the MSME financing in India. It explores the financing sources and problems in India. It talks about working capital financing via factoring and reverse factoring, cluster financing, Germany's cluster financing, listing looking at alternativa model of listing of ventures, and Thailand's SME bond markets. It also covers the need for policy redefinition of MSMEs and policy support required.
This report has been prepared by Deloitte Touche Tohmatsu India Private Limited (DTTIPL) as part of the project on Organizational & Structural Review of MSME-DIs commissioned by the office of the DC, MSME in association with Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and is in continuation of the “analysis report” prepared earlier. This report, therefore focuses mainly on “recommendations and implementation plan”.
MSME Financing - FINANCING MSME’S IN INDIA - Part - 7Resurgent India
Finance is life blood of any enterprise. But Indian MSMEs have always suffered the deficiency of this life blood, despite India having one of the most extensive banking networks in the world.
The present domestic market conditions do not provide enough opportunities for the MSME sector for raising low cost funds. To improve the flow of credit there is a need to provide low cost finance to the MSME sector, which has limited working capital and is dependent exclusively on finance from public sector banks. The cost of credit in the Indian MSME sector is higher than its international peers.
Empowering MSMEs - Challenges in MSME Financing - Part - 4Resurgent India
Lack of Experience Entrepreneurs of first generation with lack of experience, has been revealed as the foremost reasons of poor SME credit, followed by lack of collaterals & infrastructure put together 26% and poor financials of SMEs by 24% respectively.
Empowering MSMEs - Overall Flow of Finance to the MSME Sector - Part 1Resurgent India
Major reforms for the MSME sector have taken place in the form of introduction of schemes which have benefitted the flow of credit to the sector Working with the assumption that all finance demand by the MSME sector is met by either formal or informal sources, the estimate for overall supply of finance to the MSME sector is INR 32.5 trillion ($650 billion).
Micro, Small and Medium Enterprises (MSMEs) play a major role in economic development, particularly in emerging countries.
MSMEs :
Contributes to the economic growth,
Enormous potential for growth
Potential for employment and income generation
for vast masses of the country.
Government pronouncements about “Make in India” are fundamentally based on these convictions.
There is heightened attention by the international community on MSME sector.
This is primarily because of the critical importance of job creation in the recovery cycle following the recent financial crisis, and the MSME’s potentials in that respect.
In Indian economy, MSME sector contribute :
45 % of the manufacturing output.
40 % of the exports.
There are 467.56 lakh enterprises in the MSME sector.
Provide the largest share of the employment after agriculture. Employment opportunities to 10.62 crore people across the country.
Empowering MSMEs - Role of Banks & Financial Institutions, IT, Skill Developm...Resurgent India
MSMEs are nurseries for entrepreneurship, often driven by individual creativity and innovation, and make significant contribution to country’s GDP, manufacturing output, exports and employment generation. Moreover, MSMEs are imperative for achieving the national objective of growth with equity and inclusion.
MSME - All you need to know about this sectorshubhadeep saha
here in the slide, I have presented all the necessary information regarding MSME i.e Micro, Small & Medium Enterprises. From the opportunities, challenges to the benefits of MSMED act, loan schemes, projects that the FMC has submitted till date are all presented. although I couldn't provide all the happenings in MSME this presentation can be named as MINI WIKI for MSME. in recent days msme has contributed a lot to the Indian economy and makes it stronger. also, the MSME sector provides huge employment that has surely lower down the tension of the govt. e6arao aro onek ki6u a6e, jeta apnara net ghatle bujhte parben, apatoto ja korar ata diei korun. porer ta pore dekha jbe
A detail analysis on SME issues in Pakistan and recommendations on how to resolve financial issues. Understand how financial independence can be achieved through strategic financial planning. amerq.com
Pakistan has emerged as the second rapidly growing economy in Asia after China. Even though the large scale manufacturing registered 15.4% growth but small and medium enterprises (SMEs) is the core issue in the country’s progress and especially for the prosperity of masses that are surviving with low scale income due to which Pakistan ranks 135th out of 174 countries oh Human Development Index. The assessment of the role of SMEs in Pakistan is of vital importance.SME produces the income stream for masses located in the countryside and the capitalists associated with this activity that is generally medium or small as the name suggests. SMEs will be the main source of poverty reduction in Pakistan that will create the value and innovation for the country in the days to come. The thing that really needs serious attention is to remove the unnecessary bureaucratic procedures.
The Indian MSME sector is the backbone of the national economic structure and has unremittingly acted as the bulwark for the Indian economy, providing it resilience to ward off global economic shocks and adversities. With around 48.8 million units throughout the geographical expanse of the country, MSMEs contribute around 7% of the manufacturing GDP and 31% of the GDP from service activities as well as 37% of India s manufacturing output and 40% of the overall exports.
Micro, Small and Medium Enterprises (MSMEs) play a major role in economic development, particularly in emerging countries.
MSMEs :
Contributes to the economic growth,
Enormous potential for growth
Potential for employment and income generation
for vast masses of the country.
Government pronouncements about “Make in India” are fundamentally based on these convictions.
There is heightened attention by the international community on MSME sector.
This is primarily because of the critical importance of job creation in the recovery cycle following the recent financial crisis, and the MSME’s potentials in that respect.
In Indian economy, MSME sector contribute :
45 % of the manufacturing output.
40 % of the exports.
There are 467.56 lakh enterprises in the MSME sector.
Provide the largest share of the employment after agriculture. Employment opportunities to 10.62 crore people across the country.
Empowering MSMEs - Role of Banks & Financial Institutions, IT, Skill Developm...Resurgent India
MSMEs are nurseries for entrepreneurship, often driven by individual creativity and innovation, and make significant contribution to country’s GDP, manufacturing output, exports and employment generation. Moreover, MSMEs are imperative for achieving the national objective of growth with equity and inclusion.
MSME - All you need to know about this sectorshubhadeep saha
here in the slide, I have presented all the necessary information regarding MSME i.e Micro, Small & Medium Enterprises. From the opportunities, challenges to the benefits of MSMED act, loan schemes, projects that the FMC has submitted till date are all presented. although I couldn't provide all the happenings in MSME this presentation can be named as MINI WIKI for MSME. in recent days msme has contributed a lot to the Indian economy and makes it stronger. also, the MSME sector provides huge employment that has surely lower down the tension of the govt. e6arao aro onek ki6u a6e, jeta apnara net ghatle bujhte parben, apatoto ja korar ata diei korun. porer ta pore dekha jbe
A detail analysis on SME issues in Pakistan and recommendations on how to resolve financial issues. Understand how financial independence can be achieved through strategic financial planning. amerq.com
Pakistan has emerged as the second rapidly growing economy in Asia after China. Even though the large scale manufacturing registered 15.4% growth but small and medium enterprises (SMEs) is the core issue in the country’s progress and especially for the prosperity of masses that are surviving with low scale income due to which Pakistan ranks 135th out of 174 countries oh Human Development Index. The assessment of the role of SMEs in Pakistan is of vital importance.SME produces the income stream for masses located in the countryside and the capitalists associated with this activity that is generally medium or small as the name suggests. SMEs will be the main source of poverty reduction in Pakistan that will create the value and innovation for the country in the days to come. The thing that really needs serious attention is to remove the unnecessary bureaucratic procedures.
The Indian MSME sector is the backbone of the national economic structure and has unremittingly acted as the bulwark for the Indian economy, providing it resilience to ward off global economic shocks and adversities. With around 48.8 million units throughout the geographical expanse of the country, MSMEs contribute around 7% of the manufacturing GDP and 31% of the GDP from service activities as well as 37% of India s manufacturing output and 40% of the overall exports.
Democratising Finance, Alternative Finance Demystified: DealIndex ResearchNeha Manaktala
This alternative finance industry report that has been been prepared in collaboration with 18 leading disruptive alternative finance players some of which include AgFunder, EquityNet, Onevest, Syndicate Room and Venture Founders across Belgium, Canada, France, Germany, Israel, New Zealand, the United Kingdom and the United States.
Our flagship report marks the first in DealIndex’s Alternative Finance Quarterly Series and delves into the different areas permeating the alternative finance sector, with particular focus on equity crowdfunding in Volume 1: the key players, emerging trends, the changing investor landscape, and challenges faced in this burgeoning industry.
This presentation, "Alternative Financing," hosted by Financial Poise is a part of a webinar series on business borrowing basics. This session focuses on "hard money" lenders and other alternative financing sources who serve borrowers unable to obtain conventional financing.
As a local partner for Central Eastern Europe I was partnering with University of Cambridg and industry organisation I was responsible for research for 2nd AltFi report.
"Sustaining Momentum, The 2nd European Alternative Finance Industry Report"
Everything you need to know about MSME - Micro Small and Medium Enterprise. Its Organisational structure, schemes, training programmes, or setting up an Enterprise.
Entrepreneurship and women empowerment-PPT about successful women EntrepreneursKaruppan Gnanasambandan
Empowerment of Women is mainly based on their economic independence. Entrepreneurship will be a powerful tool for them to earn their income. Right or Respect? which one to choose. Simply seeking rights is of no use. Women were most respected lot in India in olden days. It is because of the British legacy we forgot our culture and started using women instead of respecting them.
Funding Sme – The Challenges And Risk Within - MSME FUNDING - NEED FOR ALTERN...Resurgent India
Finance is the lifeline of any enterprise. India has one of most extensive banking networks in the world. Despite, a considerable expansion of the banking infrastructure during the recent years, the provision of finance to grassroot level businesses, scattered across the nation, still remains an enormous challenge. Going ahead, it is also observed that Indian MSMEs have limited access to finance. Majority of the MSMEs operates on the funds of its promoters, thus limiting its growth. The limited or nonavailability of institutional finance at affordable terms is also hindering innovation in the Indian MSMEs.
The Importance of SME Finance and How It Boosts Business GrowthM1xchange
In the ever-evolving world of business, access to adequate financial resources is vital for SMEs (small and medium-sized enterprises) to thrive and expand. SMEs play a crucial role in the economy, driving innovation, generating employment, and contributing to overall economic growth. However, without sufficient funding, these businesses can struggle to reach their full potential. This article delves into the significance of SME finance and how it acts as a catalyst for business growth.
Funding Sme – The Challenges And Risk Within - Mezzanine Financing - Part - 8Resurgent India
Business owners need finance in order to invest but they want to retain control of their business and not give up valuable equity. For MSMEs the financing options are limited and private equity investors are usually interested in larger companies, while business angel investors are more active in start-ups. Furthermore, conventional bank lending is often not available for projects that could be classified as speculative. That’s where mezzanine finance comes in. Mezzanine finance is a fairly well-known type of funding, which sits between traditional bank debt and equity and it is exactly what many MSMEs need.
Funding Sme – The Challenges And Risk Within - Alternative financing sources ...Resurgent India
Securitization of Trade Credit: Trade credit is an important source of financing for MSMEs, as they sell on credit to their large customers and then wait for long periods for payment. If these receivables (trade credit) could be packaged as a securitized asset, which would essentially be a commercial paper with the credit rating of the large firm, it could help MSMEs reduce their investment in working capital and their need for finance significantly. The credit worthiness of a typical MSME would also improve, qualifying it for greater bank funding. Though the securitization process which is similar to factoring, could be more cost-effective than bank funding, factoring, and letters of credit.
SME Finance: The Essentials for Small Businesses in IndiaM1xchange
SME finance is crucial for the development and growth of SMEs in India. However, SMEs face many barriers in accessing finance from formal sources. To overcome these barriers, SMEs can explore various options, such as bank loans, non-bank loans, equity financing, or invoice financing. They should also improve their financial management, creditworthiness, and awareness of available schemes and opportunities.
Navigating the Financial Landscape: A Comprehensive Guide to SME Finance Stra...M1xchange
Welcome to our in-depth exploration of Small and Medium Enterprises (SME) finance, a vital compass for businesses navigating the intricate terrain of the financial world. In this comprehensive guide, we will embark on a journey to understand the challenges faced by SMEs, explore the diverse financing options available, and delve into innovative strategies that can empower SMEs to not just survive, but thrive in today's competitive business landscape.
Effects of micro- finance institutions' services on sustainability of small e...inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online
What Types of Financing Options Are Available for SMEs In India?M1xchange
SMEs, or Small and Medium Enterprises, are businesses that have less than 500 employees. They make up 99.9% of all companies in India and contribute more than half of the country's gross domestic product (GDP). However, despite their importance to the Indian economy, SMEs face numerous challenges when it comes to funding their operations. In this article we'll go over some financing options available for small businesses in India - whether they're setting up a new company or expanding their existing one - so you can choose which financial strategy works best for you!
MTBiz is for you if you are looking for contemporary information on business, economy and especially on banking industry of Bangladesh. You would also find periodical information on Global Economy and Commodity Markets.
Types of financing,
availability of loan for a business,
features of loan for a business,
ways of loan for business,
financial management,
innovative financial services
Acquisition Opportunity! Exploring the Future of Ayurvedic & Unani Medicines!Resurgent India
Join us in acquiring INDIAN MEDICINES PHARMACEUTICAL CORPORATION LIMITED (IMPCL), a profitable venture with a strong legacy. As a trusted government-owned entity, holding Mini Ratna Category II status, we're shaping the future of natural healing together.
The goal of the demonetization move in India is to make the economy stronger and eliminate the parallel cash economy which is unaccounted and untaxed. While this can impact the GDP negatively in the short term, it should have positive long term consequences. For e-commerce companies, which already have a digital payments system in place, it should lead to higher online payment and eventually eliminate the painful cash on delivery option. However, in the short term, witness a decline in GMV from India as the economy adjusts to the “new normal”.
Funding Sme – MSME FINANCE – DEMAND & SUPPLY - Part - 9Resurgent India
The present domestic market conditions do not provide enough opportunities for the MSME sector for raising low cost funds. To improve the flow of credit there is a need to provide low cost finance to the MSME sector, which has limited working capital and is dependent exclusively on finance from public sector banks. The cost of credit in the Indian MSME sector is higher than its international peers. A transparent credit rating system, simplification/reduction in documentation for accessing finance, providing interest rate subvention to the MSME sector must be taken into consideration in order to maintain the growth of the MSME sector.
Funding Sme – The Challenges And Risk Within - MSMEs CONTRIBUTION TO ECONOMY ...Resurgent India
Economy, with more than 31 million units employing more than 80 million persons. Further, productivity of the MSME sector has been improving significantly with fixed investments and employment growing consistently over the past few years. This is a direct indication of the efforts focused on this sector to integrate the workforce with technological enhancements to increase production. Fixed investments in the MSME sector between FY07 and FY12 has grown at a CAGR of 6.5 per cent and employment has grown by more than 6 per cent (y-o-y). Further, between FY07 and FY12, the sector’s total gross output grew at a CAGR of 6.3 per cent - reiterating the substantial contribution of the MSMEs to the Indian economy.
MSME Financing - Alternative Financing Instruments - Part - 14Resurgent India
Asset-based finance, which includes asset-based lending, factoring, purchase-order finance, warehouse receipts and leasing, differs from traditional debt finance, as a firm obtains funding based on the value of specific assets, rather than on its own credit standing. Working capital and term loans are thus secured by assets such as trade accounts receivable, inventory, machinery, equipment and real estate.
MSME Financing - Financing options available to MSMEs-II - Part -10Resurgent India
SME exchange
GOI and regulators have initiated several measures to address the low level of MSME financing through the capital markets. In March 2012, post issuance of SEBI guidelines, both BSE and NSE have set up institutional trading platforms in the SME segment to allow MSMEs to list and raise equity capital through venture funds, private equity and wealthy individuals, without initial public offerings.
Indian Insurance Industry - Recent Industry Trends - Part - 5Resurgent India
Bancassurance means selling insurance product through banks. Banks and insurance company come up in a partnership wherein the bank sells the tied insurance company's insurance products to its clients. Globally, bancassurance has emerged as an important channel for distribution of insurance products. Various international studies have shown that a bancassurance strategy has indeed saved costs of insurance companies in the long run.
Indian Insurance Industry - Key Issues and Challenges - Part - 2Resurgent India
While a range of economic and financial reforms have helped the insurance sector grow, there remains a host of challenges which need to be addressed for harnessing the full potential of the sector:
DMIC will be an essential component of India’s future economic development. Implementation of DMIC Project requires huge investment for building up of infrastructure. It is envisaged that there will be primarily two categories of projects under the purview of state and central government agencies as:
DMIC Summit - Implementation and Institutional Framework - Part - 2Resurgent India
The effective implementation of such large and complex project, involving multiple states and agencies calls for immaculate planning and a robust administrative structure. In order to ensure that the traditional pitfalls of project implementation are overcome, it is proposed that a Project Development approach be adopted, wherein each facet of the project is rigorously developed from an engineering, financial, contractual, environmental and social perspective, along with interlinkages, on prioritization and selective basis and prior to commencement of implementation
DMIC Summit – Developing Hub for Investors - Overview & Approach - Part - 1Resurgent India
Delhi-Mumbai Industrial Corridor, from here on referred to as DMIC, is a multi-modal High Axle Load dedicated freight corridor connecting Delhi and Mumbai. It is a mega infrastructure project at USD 100 billion with technical and financial aid built in from Japan. The project is a flagship programme of Government of India with the aim of creating futuristic Industrial Cities by leveraging the "High Speed - High Capacity" connectivity backbone provided by Western Dedicated Freight Corridor (DFC).
Smart Cities - Global Case Studies - Part - 5Resurgent India
Greater Manchester is the single biggest economic area outside London with a residential population of 2.7 million. Greater Manchester is made up of 10 local authorities, of which the city of Manchester is the largest. The city of Manchester is located at the core of the Greater Manchester metropolitan area. Manchester’s core sectors are the business, finance and professional services sector which contribute ~40% to the city’s economy.
Smart Cities - Global Case Studies - Part - 4Resurgent India
Beijing, as the capital and political and cultural center of China, is a world famous ancient city and modern cosmopolis. Standing in the northwest of Beijing, Haidian District is important and famous for its science and technology, culture, education and tourism. It, consists of 22 sub -districts and 11 townships, has a total area of 426 square kilometers and a resident population of 1.5 million.
Empowering MSMEs - Benefits of Credit Rating in MSME - Part - 8Resurgent India
Approaching a credit rating agency is a good option for small and medium enterprises (SMEs) given the problems they face in seeking finance. Rating agencies assess a firm's financial viability and capability to honour business obligations, provide an insight into its sales, operational and financial composition, thereby assessing the risk element and highlights the overall health of the enterprise.
Empowering MSMEs - Skills Development of the MSME Sector - Part - 7Resurgent India
One of the thrust areas for increasing the competitiveness of MSMEs includes skills development. Skills development not only helps in improving productivity but also fosters entrepreneurship. Hence, it is imperative for the concerned governmental agencies, trade associations and MSMEs to come together and discuss on how to make training programmers relevant and attractive for MSMEs. The lack of human resources has been a long-standing problem faced by MSMEs in the country. Despite India’s large pool of human resources, the MSMEs continue to lack skilled manpower required for manufacturing, marketing, servicing, etc.
Empowering MSMEs - Policies of Financial Regulator - Part - 5Resurgent India
To ensure formal finance to priority sectors such as agriculture and MSME, Priority Sector Lending guidelines have been in place for commercial banks since 1972. Under these guidelines, domestic commercial banks are required to allocate 40 percent of the net bank credit for priority sectors (32 percent norm for foreign banks.
Although banks have a higher risk perception of the MSME sector, they continue to be the key players in formal financing. The higher share of bank supply can be attributed primarily to Priority Sector Lending (PSL). PSL guidelines require banks to allocate sizeable share of their credit portfolio to micro and small enterprises.
Smart Cities: Smarter Solutions for better tomorrowResurgent India
It is estimated that by 2030, 40% of India’s population will be living in urban areas and contributing 75% of GDP. On account of the ongoing rural-to-urban migration, an estimated 400 million people are expected to migrate to cities over the next 15 years.
Indian Insurance Industry: Reaching out to Exponential Growth Resurgent India
From Insurance being seen as a basic protection instrument against expected losses, the Indian Insurance industry has surely come a long way to become an absolute critical driver of economic prosperity and growth. The sector has helped account for risks; provide funds for capital intensive national building efforts besides lending social security to the citizens. Over a period of decade and a half, the industry has witnessed phases of spurt growth and moderation, intensifying competition and expansion of customer and geographic coverage.
DMIC is India’s biggest infrastructure investment and the largest infrastructure project ever undertaken. At a cost of $100 billion and covering the states of Uttar Pradesh, Haryana, Rajasthan, Madhya Pradesh, Gujarat, and Maharashtra, the project aims to create top-notch infrastructure and establish 24 smart cities with cutting-edge technology, connectivity across rail, road, port and air, and uninterrupted power.
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It is a sample of an interview for a business english class for pre-intermediate and intermediate english students with emphasis on the speking ability.
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HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
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Looking for professional printing services in Jaipur? Navpack n Print offers high-quality and affordable stationery printing for all your business needs. Stand out with custom stationery designs and fast turnaround times. Contact us today for a quote!
Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
2. Finance is the lifeline of any enterprise. India has one of most extensive
banking networks in the world. Despite, a considerable expansion of the
banking infrastructure during the recent years, the provision of finance to
grass root level businesses, scattered across the nation, still remains an
enormous challenge. Going ahead, it is also observed that Indian MSMEs have
limited access to finance. Majority of the MSMEs operates on the funds of its
promoters, thus limiting its growth. The limited or non-availability of
institutional finance at affordable terms is also hindering innovation in the
Indian MSMEs. In India, the preferred mode of finance is either self or other
sources. This further complicates the situation, as with these sources an
enterprise cannot challenge the increasing competition. On account of
globalization; MSMEs are beginning to opt for other specialized financial
services and options.
MSME FUNDING - NEED FOR
ALTERNATIVE FINANCING
3. The Government has taken various initiatives from time to time to address the
problems faced by the MSME sector. It has set up numerous, organizations,
boards, corporations and training centres have been set up to provide
technological, entrepreneurial, managerial and financial assistance to these
units. Likewise, several committees and study groups set up by the
Government, the Reserve Bank of India and Small Industries Development
Bank of India (SIDBI) have studied the problems faced by MSMEs and
suggested various measures to address these issues. This have significantly
contributed and set up a favourable environment for setting up and nurturing
small industrial units. However, high incidence of sickness and subdued
credit off-take in this sector indicates that the results have not been as
desired. This necessitates a paradigm shift in the approach of banks towards
the segment. In this background, there is, thus, a need for formulating of a
new business model for financing the MSMEs.
MSME FUNDING - NEED FOR
ALTERNATIVE FINANCING
4. The traditional approach to MSME financing which is based on rigid credit
appraisal systems that revolve around financials, single delivery channel,
involvement of various hierarchies in processing and decision making,
limited focus on cross selling opportunities, difficult and inflexible system of
accessing transaction history, limited and pre-structured credit products,
etc. has to be MSME FUNDING - NEED FOR ALTERNATIVE FINANCING Finance is life
blood of any enterprise. But Indian MSMEs, have always suffered the
deficiency of this life blood, despite India having one of the most extensive
banking network in the world. The Government has been trying to tackle the
problems faced by MSMEs and also have established several committees and
study groups along with the Reserve Bank of India and Small Industries
Development Bank of India (SIDBI) to study the problems faced by MSMEs
Resurgent India Limited 23 replaced with a new business model for financing
MSMEs.
MSME FUNDING - NEED FOR
ALTERNATIVE FINANCING
5. SIBDI is the principal financial institution for the promotion, financing and
development of industry in the MSME sector in the country. SIDBI also provides
appropriate support in the form of promotional and developmental services. In order
to improve the credit flow to the MSME sector, it has tied-up with public sector banks in
the country. With these tie-ups, it has covered 150 MSME clusters, out of the total 388
clusters identified across the country.
MSME FUNDING - NEED FOR
ALTERNATIVE FINANCING
6. Banks today are slowly but surely adopting a more progressive and forward
looking outlook. With the assistance of better technology, risk prediction and
management strategies and tools, as well as the sheer number of positive
MSME growth stories, banks are extending a strong lending hand to MSMEs.
Banks are considering the recommendations made by the Ganguly
Committee and the government directive to adopt a full-service approach to
cater to the diverse needs of the MSME sector. This may be attained by
extending banking services to recognized MSME clusters and by adopting the
4-C approach: Customer Focus, Cost Control, Cross-Selling and Containing
Risk.
MSME FUNDING – Change In
Scenario
7. In its broadest definition, the banking sector includes commercial and
investment banks, leasing companies, microfinance institutions (MFIs), and
other related institutions. MFIs have emerged to serve the smallest of these
enterprises, while banking institutions have typically concentrated on large
corporations. MSMEs fall between these two markets where there is a
financing gap. However, the attitude has changed after the SSI segment was
redefined in 2006, categorizing it into manufacturing and service segments
under micro, small and medium industries. As a result, MSME banking started
to grow as an industry. Banks thus began to turn their attention towards this
untapped market.
MSME FUNDING – Change In
Scenario
8. It is observed that, the problem faced by Indian finance system is that there is
no transparency regarding the financial conditions of MSMEs. The reason for
this may be that some enterprise owners themselves may not grasp their
financial conditions well. This will result in hesitation from banks to give loan to
small scale units. In fact, there is evidence to establish that a fairly significant
proportion of loans given to small enterprises in the past have compounded
the problem of non-performing assets (NPAs). Unless there is fairly detailed
information on small firms, banks would hesitate to take risk. Hence, securing
transparency of financial conditions, eventually, influences decisions on loan
finance
MSME FUNDING – Change In
Scenario
9. This resulted as ray of hope for MSMEs in the financing arena and banks are demonstrating that
the MSME segment can be served SIDBI is the front runner in promoting, financing and
development of industry in the MSME sector in the country. Banks today have changed their
attitude towards MSME, on the back of success stories. Thus banks are ready to cater to the full
needs of the sector. Resurgent India Limited 24 profitably, provided it is properly understood.
But banks alone cannot be the saviour of the MSME sector. They too need a strong system to
lean upon. RBI must ease the lending and NPA accounting norms for banks who lend to the
MSME sector. Such strong directives and support would have a very positive impact on the
morale of the MSMEs.
MSME FUNDING – Change In
Scenario
10. Sickness in MSME sector: Sickness has been one of the major problems
affecting the MSME sector. Here the sickness refers to inability of the
enterprise to repay the loan finance. Sickness in MSMEs has been growing
from 13.98 per cent in 2001-02 to 14.47 per cent in 2006-07 and is expected to
be around 17 per cent at present. Out of the units having loan outstanding with
institutional sources like banks and financial institutes, sickness was about
14.08 per cent in the registered MSMEs. Sickness identified in terms of
continuous decline in gross output was 13.01 per cent in the registered
MSMEs.
MSME FUNDING – Change In
Scenario
11. Not withstanding the policy support to MSMEs and increase in bank credit to this
sector in recent years, access to adequate credit at a reasonable cost is still a critical
problem for the sector. The credit flow to MSMEs through institutional sources is not
commensurate with the economic activity undertaken by MSMEs. As per the statistics,
it’s known that small businesses generally depend on multiple sources of financing
ranging from new internal sources, viz., personal funds and funds from Apart from the
conventional ways of financing an enterprise there are various alternative options to
finance a business. These alternative or unconventional ways of financing offer a
wide range of choice for the promoter to raise fund for his business and also offers a
range of options to choose from. Resurgent India Limited 25 friends, to external
sources, both formal and informal, which include financing from banks, NBFCS,
venture capital funds, trade credit, factoring etc. Choice of alternative financing
sources is determined by the growth stage of the enterprise, the quantum of funds
received, the maturity of the financial market and the policy environment. Therefore,
alternative sources of finance can be very important for MSMEs.
MSME FUNDING - NEED FOR
ALTERNATIVE FINANCING
12. Alternative financing sources:
Securitization of Trade Credit: Trade credit is an important source of financing for
MSMEs, as they sell on credit to their large customers and then wait for long periods
for payment. If these receivables (trade credit) could be packaged as a securitized
asset, which would essentially be a commercial paper with the credit rating of the
large firm, it could help MSMEs reduce their investment in working capital and their
need for finance significantly. The credit worthiness of a typical MSME would also
improve, qualifying it for greater bank funding. Though the securitization process
which is similar to factoring, could be more cost-effective than bank funding,
factoring, and letters of credit.
MSME FUNDING - NEED FOR
ALTERNATIVE FINANCING
13. Securitization of MSME Credit: Likewise, MSME credit could be packaged in the
form of loan pools or securitized assets and sold to investors interested in
such an asset class. The MSME loans which had very nominal share of 2 per
cent in securitization during 2010-11 have emerged as one of the key loan
categories to be securitized accounting for almost 11 per cent of total assets
securitized in the asset backed security (ABS) pool during 2011-12, indicating
growing investor and issuer interest in this asset class. If institutions utilize
their expertise to systematically build this asset class backed by a strong
underwriting framework and market it to a larger investor franchise then
such transactions would enable small business lenders to access capital
markets at a reasonable cost and boost funding to MSMEs. .
MSME FUNDING - NEED FOR
ALTERNATIVE FINANCING
14. Securitization helps in creating a secondary market for MSME loans in India
and if properly applied this technique can become a replicable tool that can
enhance access to finance for MSMEs. The new guidelines for securitization
of standard assets issued by Reserve Bank of India in July 2012 are also
expected to go a long way in the creation Securitization of Trade Credit is an
arrangement where receivables of an enterprise could be packaged as a
securitized asset, thus helping MSMEs reduce their investment in working
capital and their need for finance significantly. Securitization of MSME Credit
refers to packaging of MSME credit into loan pools or securitized assets and
sold to interested parties I exchange of funds. Resurgent India Limited 26 of a
true securitization market in India as they have incorporated several
safeguards to enhance the quality of pass through certificates issued in a
securitization transaction.
MSME FUNDING - NEED FOR
ALTERNATIVE FINANCING
15. Factoring to Tackle Delayed Realization of Receivables: Considerable delay in
settlement of dues/payment of bills by the large-scale buyers to the MSMEs units
adversely affects the recycling of funds and business operation of MSME units.
Further, timely payments from customers will help MSMEs in reducing their working
capital requirements leading to lower interest costs, improved profitability and a
positive impact on the longterm health and sustainability of India’s MSME sector. A
study of 5000 MSMEs by CRISIL shows that high quantum of receivables is an
endemic problem across industry/ sectors and geographies in the MSME space.
Smaller MSMEs, perhaps due to their lower bargaining power, are in an unfavourable
position with weaker receivable positions. CRISIL estimates that timely payments
from large customers will help MSMEs reduce interest costs, and improve profitability
by around 15 per cent and have a positive impact on the long-term health and
sustainability of India's MSME sector. It is, therefore, critical that small enterprises
receive payments on a timely basis from customers or alternatively they are able to
raise liquidity against their receivables..
MSME FUNDING - NEED FOR
ALTERNATIVE FINANCING
16. The above problem of delayed realization of receivables can be institutionally
tackled by factoring which provides liquidity to MSMEs against their
receivables and can be an alternative source of working capital. Factoring is a
flexible alternative to traditional forms of funding. When a client makes a
sale, delivers the product or service and generates an invoice, the factor buys
the right to collect on that invoice and releases funds, usually 80-90 per cent
of the invoice value to the client. Factoring as a financial services product is
superior to the conventional bank finance in terms of it being an easy and fast
method of turning accounts receivables into cash, offering funding up to 90
per cent of the invoice value, not restrained by geographical limits, non
requirement of collateral security, offering value-added services in the form
of sales ledger administration, collection and credit protection, credit
screening-cum-credit monitoring and early detection and warning of
customer service problems.
MSME FUNDING - NEED FOR
ALTERNATIVE FINANCING
17. Across the world, factoring is a preferred route of accessing working capital for MSMEs and
even larger organizations. Some banks and financial institutions in India have already launched
factoring services for MSMEs. As a result of this procedure, MSMEs attain liquidity against their
receivables from customers and is regarded as a cash management tool. Factoring would also
help improve MSME financing and is a major step towards full-fledged securitization. The
Indian factoring market is currently pegged at around Rs. 25000 crore. Factoring as a service is
seeing significant demand from MSMEs in line with global trends.
MSME FUNDING - NEED FOR
ALTERNATIVE FINANCING
18. THANK YOU
Email: jyoti.gadia@resurgentindia.com Call Us: +91 124 4754550
www.resurgentindia.com
Read full report on: http://blog.resurgentindia.com/funding-smes-the-challenges-and-risk-
within/