Start ups and small business enterprises (SMEs) that want to grow need to raise funds. But, deficiencies in proper management of investors and improper tracking of progress towards investment goals can lead to failure for meeting funding requirements.

A software-as-a-service (SaaS) platform like ‘Apptivo’ that effectively manages all aspects of small businesses says, its fundraising application can tackle woes of start-ups and SMEs. There are centres of the company in Madurai and Chennai. The company is into development of a fund raising application built on HTML 5 platform. By using this platform, audio-visual presentations can be created and sent over to VCs. The VCs can also give their comments and put in money, everything done online. This fundraising collaboration hub is expected to be launched in India in next six to nine months.

Currently ‘Apptivo’ has 50 apps that can be of use to SMEs. These include invoicing, CRM, project management, timesheets and other necessities to run business. All these services are provided as individual web applications on the Apptivo platform. Forty-five of these applications are free, while e-faxing and email campaigns are available at $10 per month.

Mohit Arora, Director Supertech, says, “We are happy to sign contract with the prestigious firm Benoy. We are confident that the association will help us design an infrastructural masterpiece while maintaining high quality standards and a project that will reckon.”

Council for Leather Exports (CLE), India and the Expo Riva Schuh Garda Fair- Italy have contributed greatly to organize the fair successfully. The B2B fair has seen participation from companies of Bangladesh, China, Italy and Thailand.

This is for the first time in India that an international fair of this magnitude in the leather and footwear industry is being held in India. The third day of ‘Expo Riva Schuh India’ saw 1,000 visitors and also generated significant business.

India is found to have an edge over China as there is easy access to skilled labor availability simultaneously coupled with the untapped potential that exists in the domestic market. China on the other hand is the world’s largest shoe-maker but then the country has lost out because of labor related issues.

Hopes Held High on the Trade Fair

The domestic footwear and leather industry sector will find an impetus with this B2B fair. India has already become a major hub for sourcing of shoes, leather, garments and finished goods. So, there is huge opportunity for domestic SME Units.

Ali Ahmed Khan, executive director at CLE, opines that the event is significant and marks a great beginning as in the first day itself huge number of people visited to grace the show. The domestic footwear market is noticing continual growth and evolution. This particular event will further catalyze the growth momentum.

Firstly, it is going to be 100 percent underwritten that is a promise of 100 percent success. Then there is going to be support for three years in secondary market through the market making activity. SMEs with paid up capital of Rs 10 crore can get listed on SME exchange in-comparison to the Rs 10 crore or more for the main board. It is good to have a simplified listing norm. The issuer just needs to take approval from the exchanger and now Sebi’s approval is no longer required. However, Sebi will be kept informed by sending a copy of the offer document.

Financial results need to be submitted on a half-yearly basis and there is no requirement of publishing the results as is the case with the main board. The results can be made available on SME websites and entrepreneurs can send over their profit and loss account and balance-sheets to share holders. The other big factor is SMEs with paid-up capital between Rs 10 crore and Rs 25 crore have the option to list on either the main board or SME Exchange. Enterprises need to keep their documents ready regarding annual reports, past performance, risk factors for getting listed on the SME exchange.

It is very important for companies to get listed on the SME exchange. Listing makes it possible to find better valuation to a company. Debt and equity ratios will start improving and balance sheets will look better. Transparency and corporate governance will start to improve. Listed SMEs with gain more visibility among investors and will have easier access to alternate funding options. Fundraising through ADRs, GDRs and follow –on public offerings become much easier.

Handicraft products in particular have witnessed demand rise by 20 percent from markets like the US and European nations. Sales have jumped during November and December season due to Christmas as handicraft items are considered as gifting products. July, August and September are considered the best time of the year for handicraft exports. Things have started to improve in US which is the main market for Indian handicrafts products.

European countries still remain a challenge as countries like Greece and Spain have not overcome recession nightmares. These countries are debt ridden and the quantum of orders is less in-comparison to last fiscal. Production is on and shipping of goods can start by the end of July. Demand for leather products has risen 20 percent this year.

Demand-flow has increased for other sectors as well. Sectors like textile, apparel, and carpets has witnessed rise in demand. Buyers are concentrating on textile and apparel products too. US and European markets have witnessed rise in confidence level this year.

This article was submitted by Raj Tulshan, Director of Business Development of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to
info@biz2credit.com

Rajkot is second largest to Bangalore as machine tools manufacturing hub. It has an annual turn-over of 800 crore and is growing exponentially at the rate of 30 percent. But then the industry is currently suffering due to shortage of skilled manpower. Unido has started programs to address this issue.

Machine tools industry of Rajkot is growing very fast and the domestic demand from auto and infrastructure industry is also very high. But then skilled manpower continues to pose problems. As the problem is deepening, there is need to prepare for global and domestic competition. Unido plans to organize 12-15 programmes that concern marketing, skill development, tool design and technology.

‘Unido’ is going to educate industry professionals about everything starting from technology to marketing keeping abreast with international standards. Unido is planning to appoint national- and international-level experts so as to impart knowledge for technology up-gradation. They can then visit selected machine tool units for researching on them.

Rajkot has about 500 small- and medium-machine tool manufacturing units. During the span of last three years, the industry’s turnover has increased from Rs 500 crore to Rs 800 crore as domestic demand too has started to rise.
This article was submitted by Raj Tulshan, Director of Business Development of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to
info@biz2credit.com

Under the new scheme, the IIE has involved experts and is making use of software technology to improve on design and skills of weavers. The weavers are found involved in making bedsheets, shawls and towels from cashmilon. The project is meant to magnify the skills of weavers and their designs. It is a three year project that started in 2008.

The expenditure for making the Mangalore cluster is Rs 60 lakh with Rs 51.95 lakh support received from the centre and Rs 7.37 lakh coming directly from the state government’s kitty. Initially, IIE established 32 self-help groups of weavers and started their bank accounts too. Then a federation under the aegis of Mangalore Handloom Society also got created aimed to work as an umbrella organization for the weavers.

A special skill development programme has also been initiated for weavers. This new programme has helped Amir Ahmed to be trained as the master trainer at Weaver Service Centre, Meerut. IIE has also selected computer added text design (CATD) software to make improvements in design. IIE now targets to establish a common facilitation centre (CFC) costing 30 lakh.

This article was submitted by Raj Tulshan, Director of Business Development of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to
info@biz2credit.com

Recession had hit the plastic industry in 2009 but now the industry has started to recover. The products of this sector are used both for industrial units and household sector. High percentage of respondents (61.5 per cent) says that the market picked in 2010. About 16.6 percent reported that it has worsened and 21.8 percent respondents have found that there is no change. Consumer sentiment in 2010 surpassed expectations according to 17.9 per cent participants, while 61.5 per cent reported average improvement and 20.5 per cent indicated negative consumer sentiment.

Liquidity crunch is a major concern for 32 per cent respondents and poor consumer is still a bigger challenge for 46.1 per cent respondents. For 21.8 per cent respondents, lack of infrastructure is the main hurdle for growth.

The purpose of meeting MSME ministry officials is to trigger the ministry to implement the draft government policy for making it mandatory to purchase 20 per cent from SMEs. The government has released a draft policy and it has been circulated to all concerned ministries. The issue right now is how fast it can be implemented. The policy will come through the Cabinet Committee on Economic Affairs (CCEA).

Last year, the government has come up with the National Manufacturing Competitiveness Programmed for the SME sector. Under the programmed, there are various schemes like low-cost automation, basic software, direct patenting, promoting clusters, entrepreneurship training and market development.

Nowadays, small industry has to go through a number of procedures when it comes to registration. A small business has to be registered with District Industries Centre, the sales tax department incase it is a slightly bigger, and then with the Central excise department. Multiple registrations cause lot of delay.

The raising of interest rate by banks is also an important issue. Finance has been a key issue with SMEs, but now micro enterprises find concessional rate scheme for loans up-to 10 lakh. The concession is 2-3 percent as compared to the normal rate of interest. Loans are handed over to small companies at 15-17 percent.

Polythene is used to build the protective shade of polyhouses for growing high value agricultural products. Temperature, humidity and ventilation are kept under control with the help of equipments installed inside the polyhouses. Crops that are grown in such polyhouses are thus protected from unfavorable weather conditions.

Vinod Kumar who has a 40 sq mt polyhouse on his farm, says, “I am planning to have many more such polyhouses on the farm, as it provides an opportunity to cultivate crops that would suffer if subjected to the vagaries of the weather.”

Kumar is not just one farmer who is willing to reap benefits of installing poly-houses. Farmers are also finding support from a Nabard-assisted scheme. The scheme requires farmers to pay for just 20 percent of the cost of a polyhouse while 80 percent remains subsidized.

Deen Dayal Kisan Samridhi Kisan Yojna is Rs 353 crore projects launched in 2008 by state government and it aims to uplift social status of farmers. It is also an attempt to diversify crop cultivation. In the first phase of the project, Rs 154.92 crore got funded and this meant for emphasis on cash crops production. In the second half, Rs 198.09 crore is kept reserved for the diversification of agriculture through micro-irrigation and other related infrastructure. State government believes that the main advantage of polyhouses is its going to generate self-employment avenues.