August Issue 2022_Digital

13 YEARS AUG 2022 ,``150 VOLUME - X, ISSUE - III SMALL TO BIG Challenges of Growth An Aspire AEONIAN LLP Publication Ajay Thakur Head SME, BSE SME To Subscribe, visit Magzter : www.magzter.com Jio Prime Subscibers will be eligible for Free download through JioNews App



EDITOR’S NOTE www.smallenterpriseindia.com EDITORIAL TEAM Dear Readers, Dojo Jose : Editor-in-Chief & Publisher In this highly driven and ever-evolving era, it is crucial to understand [email protected] the future possibilities of not only the giant business but also micro, N Mahesh : Associate Editor small, and medium enterprises. In the current phase of possibilities, Dhanya Menon : Features Editor all the businesses come up with their best plans, ideations, and Vaibhav A : Copy Editor intentions, but it is necessary to know why only some of them Sandeep Kumar : Sub Editor/ Deputy Editor succeed. In this edition of the magazine, we are focusing on the Babu S : Senior Correspondent growth potential and possibilities of MSMEs, along with describing varied aspects where MSMEs are left with scope for improvement. In SALES & MARKETING addition to less-promoted government support, these businesses Sonali face numerous challenges and issues. However, you'll be glad to Manager - Partnerships & Alliances learn that we have enlisted some extensive solutions and many ways to help these companies grow. Although the Government of India IT DEPT has taken steps to keep MSMEs afloat during the current economic Raheel Mohammed - Manager - IT crisis, the Government can't ensure their survival and growth. To remain viable, MSMEs must diversify their supply chains, occupy ADMIN vacant space in the value chain and take advantage of the Sudha - Assistant Manager - Admin & HR disruptions to their competitors. This is particularly important because these companies are vital to the livelihood of millions of FINANCE people. Apart from being the backbone of the Indian economy, Balraj M.S : Finance Manager MSMEs are also strategic players in the overall industrialization process. Design Parithimal E : Senior Designer The MSME sector has been the silent engine behind the national MANAGEMENT economy. In recent years, it has successfully acted as a defensive Dojo Jose : Founder & Publisher mechanism against the shock of the global economic crisis and has Tapasya Ravishankar : Co-Founder & Director propelled India to become a global powerhouse. The Atmanirbhar Doramma Jose : Managing Director Bharat initiative is aimed at developing local technologies and CONTRIBUTORS providing fierce competition in domestic and international markets. Archana : Mumbai For MSMEs to grow, they need to meet the requirements of the Harpreet Kaur : Mumbai population and the economy. We have depicted varied ways to help Mamta Sharma : Ahmedabad MSMEs thrive in this competitive world where many established Gagneet Singh : Mohali businesses are already there. Itishree S : Hyderabad Jill Shah L: Ahemedabad The lack of standardization has been seen as a major hindrance to Nidhi Arora : New Delhi the growth of MSMEs. But our focus for MSMEs is to adopt new Nidhi Vats : Gurgoan technology to help them get their products and services to the right Priya Ravindran : Bangalore customers. R.Sundararajan : Coimbatore Rajesh Kumar : Kolkatta The series of articles that we are introducing will work as a potboiler Rekshma A : Chennai for all the MSMEs, revealing to them the varied future chances and Smitha Venkiteswaran : Goa ways to keep up with the market, enhancing their visibility and Viraj Desai : Delhi accepting technological advancements. We look forward to you Abha Chopra : Delhi enjoying it and finding it useful to your venture for life. Shalini Jyothi : New Delhi Priyanka Bhowmick : Guwahati To new beginnings. Upwards and onwards!! Happy Reading! COLUMNISTS Smitha Hari : Mumbai Dojo Jose Akshatha Sajumon : Bengaluru Rashida Khilawala : Ahemedabad Editor-in-Chief Chackochen Mathai : Chennai MAGAZINE SUBSCRIPTIONS To subscribe to Small Enterprise magazine, please email us at [email protected], “[email protected] HOW TO CONTACT US: Aspire AEONIAN LLP (formerly Aspire Media) #630, DHI Innovation Park, Bannerghatta Main Road, Bangalore - 560 076, Tel: +91 80 41155725 Email: [email protected] Web: www.smallenterpriseindia.com Disclaimer : This publication may not be reproduced or transmitted in any form in whole or in part without the written permission of the publishers. The Publishers regret that they cannot accept liability for errors or omissions contained in this issue. The opinions and views expressed within this publication are not necessarily those of the publishers or the editor. The editorial items appearing in this publication are the copyright property of Aspire AEONIAN LLP. All rights reserved.

VOLUME - X, ISSUE - III August 2022 | `150/- 06 14 NEWS Marketing 06 REVA UNIVERSITY ORGANISES WORLD 14 DE-RISK YOUR BUSINESS, BY LISTENING YOUTH SKILL DAY TO YOUR CUSTOMERS 08 TX9 FT350 Rising in the Green EV Market 18 WOMEN ENTREPRENEURS FOR BUILDING 201 kilometres on a single charge STRONG ECONOMY 10 WHAT YOUR ESTATE AND TRUST PLANS 21 INTELLECTUAL PROPERTY RIGHTS, SAY ABOUT YOUR FAMILY LEGACY CRITICAL FOR THE SUCCESS OF STARTUPS

24 COVER STORY 24 UNLOCKING THE GROWTH OPPORTUNITY FOR MSMEs 69 REPLACE OLD STRATEGIES WITH NEW ONES 28 HOW CAN MSMEs KEEP UP WITH THE MARKET PACE? 71 BALANCING QUALITY AND GROWTH 31 MSMEs PLANNING AHEAD OF TIME 73 HIRE PEOPLE WITH POSITIVE ATTITUDES 34 ABOUT MSMEs BECOMING 75 A STREAMLINED CASH FLOW EXEMPLIFIES POSITIVE 38 WINNING THE BUSINESS 41 NURTURING A GREAT COMPANY FINANCIAL HEALTH OF AN MSME 44 CHANGE MANAGEMENT 79 TIME MANAGEMENT 48 NEED FOR MSMEs TO TURN TOWARDS TECHNOLOGY 83 BUSINESS SKILLS FOR WORKPLACE SUCCESS 51 HOW CAN MSMEs OVERCOME MAJOR BUSINESS 85 HR CHALLENGES? 54 WORK ODYSSEY WITH BETTER COLLABORATION 85 RETAINING THE BEST EMPLOYEES 57 RESPONDING TO COMPETITION 60 MAKING THE MOST OF YOUR MARKETING 64 IPO IS THE BEST ROAD MAP FOR SMEs

NEWS REVA UNIVERSITY ORGANISES WORLD YOUTH SKILL DAY TRANSFORMING YOUTH SKILLS FOR THE FUTURE World Youth Skill Daywas conducted on 15 July 2022, by on wheels – Digital learning for every child. All REVA University’s University-Industry Interaction participants took an oath to get skilled to build Centre & Skill Academy, by organizing poster Atamanibhar Bharath and took a pledge to join hands presentations and by skilling students at Marker space. with REVA university initiative REVA Vanamahotsava- one Honourable Chancellor of the university DrP.Shamraju, student one tree drive to save mother earth.The event Pro-Vice chancellor DrR.C.Biradar, Registrar DrN.Ramesh concluded with prize distribution to winners of the and Director UIIC DrKiran Kumari Patil graced the innovation poster presenters. University believes that occasion. Posters were with the theme AamtaNirabhar building a strong nation is the responsibility of Higher Bharath, and students from various schools and colleges education Institutions. This is possible by inculcating an participated and displayed their talent. Chancellor entrepreneurial mindset among young minds at the early addressed students that university is responsible for growth stage. We believe that awareness and Skill building a strong nation by transforming youth skills for a development is key to self-empowerment and growth. future world. REVA University is engaged in multiple Along with the required skills, the university has set a community development activities to name a few roadmap to provide a healthy and green environment to Abhivrridhi –Government School Adoption Program, next-generation nation builders through its tree REVA Vanamahotsava- Tree plantation drive, Education plantation drive across India. 06 \\ Small Enterprise \\ Aug 2022



NEWS TX9 FT350 RISING IN THE GREEN EV MARKET 201 KILOMETRES ON A SINGLE CHARGE As we know fossil fuels are rapidly depleting, due to expanded worldwide in addition to making a name which the electric vehicle industry is rapidly growing for itself in the home market. as a viable alternative to gasoline-powered automobiles. The environment is getting increasingly The firm aspires to reinvent urban mobility options polluted across the world, and traditional automobiles while offering clients excellent value for money. It has are contributing significantly to this problem. an insatiable desire to find a long-term solution, which drives it to keep moving forward on the path to Adapting to the electric - vehicle trend is critical for success. making the planet a better place for the current and future generations. Many technical businesses are The vehicle's charging mechanism is distinct from that approaching the market to see what prospects exist, of other electric scooters, as it includes numerous but TX9 stands out among the rest. safety elements. Creating so much buzz around the Battery Swapping technique is mainly due to the TX9 is one of India's premium and top two-wheeler advantage it will give out in the future. With many enterprises, which headquarters in Bangalore, more innovations and automobile modifications intending to set a new standard for electric coming up, TX9 promises to stand out. Furthermore, two-wheelers throughout the world. TX9 has TX9 FT350's range is 201 kilometres on a single 08 \\ Small Enterprise \\ Aug 2022

charge, making it a practical and cost-effective option and 8 colour options, FT350’s Bluetooth connectivity for auto aficionados. TX9's team believes that lets the rider enjoy his/her favourite songs or GPS developing an existing technology is easier than assistance during a smooth ride. Three riding modes bringing a revolutionary one to the market, and this to choose from, i.e., Eco, Comfort and Sport, the rider idea has fuelled the company's desire to push EVs to can choose according to his/her convenience. the next level. Breakthroughs are often made with the help of an Keeping up with technology is critical for an unwavering group of enthusiastic individuals. TX9 organization's long-term success, and TX9 ensures have a fantastic crew that is incredibly enthusiastic that it does so by incorporating cutting-edge about the industry and is always coming up with new technology into its EV Vehicles. The consumer of ideas and strategies to adopt. The enterprise has also electric vehicles has many challenges, including the made significant technological advancements in the issue of battery recharging. TX9 takes a stance in the relevant field, resulting in the growth of the whole industry with its superior research and development mobility industry. team, which is working to turn electric vehicles into robots by utilizing modern robotic technology. TX9 FT350 hopes to boost demand and adoption of battery-powered scooters by offering a remission to TX9 FT350 is built with a focus on interiors and customers who express an interest in purchasing one. vehicle variants to offer a variety of clientele. It comes Furthermore, electric vehicles may cut greenhouse with a Smart Battery Assessment System, with a gas emissions and pollution, and the TX9's price and premium console display. Over 4 different variants efficiency are helping to accelerate this trend. 09 \\ Small Enterprise \\ Aug 2022

Family Business WHAT YOUR ESTATE AND TRUST PLANS SAY ABOUT YOUR FAMILY LEGACY As successful business owners, you understand that the fiduciary appointments made to carry them carefully crafted estate and trust plans provide the out, accurately capture your legacy goals and tools for families to safeguard assets and protect objectives? their financial security. But these plans can also ultimately help families create their legacies. We believe a legacy conversation—thought-provoking questions that How can you have confidence that the planning go beyond the numbers—is a crucial prelude to strategies used in estate and trust plans, as well as crafting and updating estate plans. 10 \\ Small Enterprise \\ Aug 2022

During these conversations, it is important to you experienced wealth transfer; and respect family beliefs and values, and to multigenerational, which reveals how you intend acknowledge and understand the power of family to transfer wealth to others. Asking appropriate dynamics, if your family wants to build both questions, or noting why something or someone is wealth that endures and a legacy that lasts. A important, will help you and your adviser's craft personal discovery process will help your family estate and trust plans that reflect your objectives. recognize your wealth transfer plans from two perspectives: generationally, which reveals how Themes of the legacy journey wealth transfer goals. created, whether it be a In our experience, effective family rags-to-riches story filled with legacy conversations focus on Significant wealth often fosters a hard work, discipline and three main areas: beliefs, values, desire to give back to society, sacrifice, or a fortunate event. and relationships. We have found encouraging both the ownership Knowing your family's values can that family legacy goals typically and stewardship of wealth. provide a glimpse into their complement estate and trust Families who share philanthropic biases toward wealth and its planning objectives. Many of you interests often become potential to help or do harm. probably have estate and trust mission-minded in their actions. plans in place, so you know that Charitable interests become part Wealth can provide freedom from they can often address only the of the family's outreach efforts financial worry. For some families, tangible, or quantifiable, part of a and a way to connect, even this may mean building a person's legacy. You likely want across generations. conservative nest egg to satisfy the peace of mind that comes living expenses, with the leeway with knowing that your plans will The following are some questions to pursue careers, interests and be carried out as you intended, about beliefs that may prompt a charitable endeavours. For other without disruptions or oversights frank discussion about families, financial freedom that could incur unnecessary philanthropy and wealth transfer: signifies everything negative taxes, expenses, or legal hassles. about wealth and how time and Legacy planning provides the What are your core beliefs? For energy can be wasted framework; estate and trust example, do you believe in commodities. Deciding how you planning provide the practical \"giving back\" to the and your family view wealth can implementation. community, and should all affect how you formulate your family members share this estate and trust plans. Family beliefs. Beliefs come from belief? an emotional connection to Following are a few questions to wealth and how money influences What do you and your family consider when discussing family the decisions you make during want to be known for? values during your legacy your lifetime. Think about your conversation: first encounter with wealth. Was it What character traits are positioned in a positive light? Did hallmarks of your family? What is the most important it have a strong impact? Or was it thing wealth can provide? divisive, controlling or limiting? What opportunities do you Your personal experience with want to create for stewardship What values, both growing up wealth can influence the beliefs of wealth? and as an adult, have that form the foundation of a influenced you, positively or thoughtful and effective estate Family values. Values are the negatively? plan. Also, understanding your actions behind your beliefs. This beliefs and their inherent \"thread,\" or passion, that flows What are your greatest connection to wealth may through your family can often accomplishments? Regrets? provide some clarity on your explain family members' behaviours, relationships and What do you want the traditions. Family values can be generations beyond your shaped by how wealth was 11 \\ Small Enterprise \\ Aug 2022

lifetime to know about you issues in the present can be want, and why? and your family? uncomfortable. But communications after the fact How do you define fair versus Family relationships. A historical can be misconstrued, especially equal? Are there ways to offer perspective on your family when delivered over multiple a balance? relationships can be as important generations. By addressing issues as the state of the family's through a constructive discovery Should your plan provide financial affairs. Delving into a process, estate and trust plans incentives or some form of family's history provides can be crafted and compensation to help achieve information on more than just the communicated with minimal a certain standard, preferred quantitative data. Looking conflict and misunderstanding. career choice or lifestyle beyond the numbers helps you to consideration? understand the qualitative Family dynamics often come into aspects of wealth -- the \"whys\" play in the appointing of Based on the personal talent, that explain the behaviours fiduciaries. For example, it may be education and family behind financial decision-making. best to discuss decisions relationships that exist today How individuals and generations regarding trustee appointments and those that may be forged view and assimilate wealth in with family members in advance later, who is in the best their daily lives can be rather than selecting individuals position to manage, preserve understood by looking back and who the family feels may not be and protect your family's seeing the path each person took in the best position to serve as wealth? on his or her journey. How you trustees. Some may consider experienced wealth transfer in being named as an executor or What skill sets do the people your lifetime may influence how trustee as an honour, but other involved possess to manage, you direct the people and family members may see it as a invest and distribute wealth organizations involved in your responsibility they do not want. with objectivity and authority? plans. An executor or trustee position is a lot of work, involving fiduciary Whom do you trust to carry In our role as advisers, we have responsibilities and out your wishes based on their encountered families who have decision-making power. Before knowledge of you, your family, developed complex appointing an executor or and your intentions? Are there arrangements to restrict and trustee, honestly evaluate the family members, advisers, or control access to wealth for person's talents and determine if corporate entities you trust family members. This often has he or she has the time to fulfil the and, if so, why? much more to do with family duties and obligations of an dynamics—for example, family executor or trustee. Often families Creating a bridge from thought members' perceived ability to may opt to use the services of a to action manage wealth—than with third party, an objective anything else. But these decision-maker who is not Conversations about estate and restrictions can cause permanent, burdened with family dynamics. trust planning should not focus sometimes irreparable, divisions Such a decision should come just on financial wealth. We feel among family members. This after a candid conversation with families who do so miss an emphasizes, even more, the family members. opportunity to capture the legacy importance of communication lived today and redefined when it comes to estate and trust Here are several questions related through generations. These plans, and your legacy. to family relationships that may conversations should also include help you explore your family strategic matters, such as your Most families will agree that dynamics: inspiration and motivation, family dynamics present some embracing who you are, where challenges, and confronting How much control do you you have come from and how you want to be remembered. Families often avoid discussing 12 \\ Small Enterprise \\ Aug 2022

estate and trust plans openly. concerns typically requires After a death, it is common for long-term thinking and planning heirs to be surprised to learn the with your advisers to consider all terms of the estate plan, that the challenges and opportunities assets were left in trust and that for family members and others are named in a fiduciary organizations. capacity such as executor or trustee. It is much more effective -Dr.N.Krishnan to ask the right questions now that focus on your beliefs, values, Dr.N.Krishnan and relationships so that resources are allocated at the Family Business Advisor to right time, to the right people multi-generation family business and in the right amount. across India – Building Family Business Governance for The questions highlighted in this perpetuity.You can contact the article only scratch the surface of author at any family legacy conversation. [email protected], Creating estate and trust plans www.sadashivaconsulting.in, that reflect multigenerational Contact:+91 9686355552 13 \\ Small Enterprise \\ Aug 2022

Marketing DE-RISK YOUR BUSINESS, BY LISTENING TO YOUR CUSTOMERS A successful business is not solely dependent on constructive marketing strategies, and better the products or services you have to sell. Rather it your CX at the same time? is a complex mix of your products, your marketing, and ultimately your customer It’s simple really! Listening to your customers has experience. more benefits than you anticipate. But how can you improvise your products, built Here's how formal listening can help your business expand Why do you need to listen to accurate in determining what customers extremely important! your customers? your customers want.The only To know what your customers person who can give you a There are many old-school ways want complete idea of customer of listening to your customers. expectations is the customer But the growing technology has Fun fact: No amount of research, himself. created tools that irradicate the groundwork, or consultations limitations of informal customer with experts can be 100% That makes Listening to your communication, and leverage the 14 \\ Small Enterprise \\ Aug 2022

data gathered through formal from NPS, one can also use a brands to track customer reviews listening. process called CSAT (Customer and over time, create a positive Satisfaction Score). image on social and review One of the best tools of formal platforms. listening is NPS (Net Promoter As the name suggests, the CSAT Score). An NPS survey is an focuses on the level of Additionally, these platforms also excellent indicator of new or satisfaction your brand help brands in reaching potential repeat business. This survey provides& is a good measure to clientsby helping brands improve, primarily asks customers whether predict the quality of your based on popular customer they would recommend your relationship with your customers. opinions.The credibility of real brand to others? customer reviews is far higher It generates a feedback than any form of advertising. Listening to your customers and mechanism that helps your receiving their inputs and company maximize your Brands that are fabricated around suggestions may give you the customer communications and customers' demands and exact representation of your suggestions are always deemed product/ service in the sales efforts.It may seem like a to do much better than their consumers’ eye. Listen to simple feedback tool but the competitors. As customers see a improve. right use of it may gain you some reflection of themselves in such crucial insights into the minds of brands. It immensely contributes to your clients. reshaping your offering, you may To Prevent Customer Churn % re-analyze the way you market To Build your Brand Increase Retention and sell. It also contributes Brand Building is considered to According to research, 42% of toward the betterment of your be one of the top priorities of customers are unlikely to report customer service strategies that rising companies. In the internet acomplaint against a brand or a ultimately improve your customer age,where buying is no longer company if they had an experience, loyalty and retention. linear, branding has become a unsatisfactory customer comparatively multi-media, experience. They simply exit the To Get a Multi-dimensional multi-touchpoint process. relationship. Point of view You may view your product/ But, firstly companies need to A recent survey indicates that for services, selling and marketing understand that, building a brand almost 50% of customers, one process, and customer experience is a two-way process. You need “poor” experience is all it takes to be the best out there. But, your to listen to your customers to for your loyal/ potential customer customers may view it in a build a successful brand.Here's to turn to your competitor. This completely different light. when Online Reputation percentage could be as high as management comes into play. 75% for millennials and Gen Z. To connect with your customers, talk, and listen to them. Aside It is critical for companies to On the other hand, there are 60% constantly and structurally more chances of a second interpret and improve their online purchase if the customer had a reputation.Online Reputation satisfactory first experience. management software allows For the overall improvement of your brand and to provide a positive customer experience, you can adopt a CES (Customer Effort Score) methodology. This CX metric indicates how much effort customers put in to interact with a brand. The motive is to 15 \\ Small Enterprise \\ Aug 2022

find if customers have difficulty Adopting formal listening Ms.Anjali Malhotra reaching, engaging or transacting techniques and collating them via various touch-points. with data insights, helps C-Xcelis a practice offering gamut of segment your customers, and solutions for B2C companies to help Simplicity is the name of the predict needs & behaviours, them achieve greater success through game as more brands create which form the basis for customer-centricity. It is founded by effortless, seamless, convenient specific actionable sales Anjali Malhotra, a specialist in Product, ways of engaging using new opportunities with them. Marketing, Customer, Analytics, Digital platforms based on AI, speech Transformation & IT across BFSI, recognition, RPA and so on. Eventually acquiring and Media, and FMCG industries. For more retaining customers is essential information visit www.c-xcel.com or Ultimately a good CX will shrink for the very survival of the call 91-9599496661 customer churn over some time. business! It is a business imperative. To Increase Revenue through Upsell and Cross-sell Various Formal listening techniques have their own set of Increasing Revenue per benefits. Each one is designed customer and enhancing with a certain objective in mind. Lifetime value, are extremely Every company is unique, hence important aspects of the the suitability of the apt tools and business. processes must match the needs of every company. A successful upsell or cross-sell strategy is only -Anjali Malhotra possible when with sufficient customer data, personalization and ease of transaction. 16 \\ Small Enterprise \\ Aug 2022



Women Entrepreneur WOMEN ENTREPRENEURS FOR BUILDING STRONG ECONOMY Entrepreneurship is one of the most important problem-solving that can enhance the quality of elements necessary to build the economy.Every the solution at large. The unique set of issues and nation tries to improve economic growth for experiences that women put forth helps in quality prosperity and better living standard for its decision making. people, and an entrepreneur is a catalytic agent of change. In the past few decades, the role of In the Indian scenario, it is not a cakewalk for women in our society has changed drastically and women to take any decision independently. She for the better. Women are now encouraged to has to face many problems in carrying out any occupy corporate positions. The gender economic activities or undertaking any stereotypes which were more prevalent in society entrepreneurial tasks. She has to undergo various decades ago are slowly getting dissolved. Women socioeconomic and other problems.As an bring a different set of perspectives to entrepreneur, they are not treated equally to men due to social and cultural traditions. In this golden age of entrepreneurs do not come only parts of the country. globalization, digitalization and from the established business start-up booms, India is seeing a families or the higher-income Now in recent India, it is observed revolution concerning women sections of the population, they that there has been an increasing entrepreneurs. Today’s women come from all walks of life and all trend in the number of women-owned enterprises as the 18 \\ Small Enterprise \\ Aug 2022

result of drastic change in the much to the dismay of their Opportunities for Indian present world. Women are sceptics, they have mostly Women Entrepreneurs participating in large numbers in appeared triumphant as the dust Educated, gifted, and qualified the present world of of criticism settled. The industry females can enter virtually any business.Women are successful in has much to gain and nothing to business. Successful women have multiple professions like law, lose with women in business. The been representing and continue science, medical, aeronautics and merits are innumerable. to represent brands like Times of space exploration and even in India, PepsiCo, ICICI, TAFE, HP, police and military services, along Indian industry’s think-tank HSBC and J.P Morgan along with with they are showing their gets bigger. other names. The list in the lines interest even in business and to come puts forward a few industry. They have proved that New opportunities are created. sectors where women they are no less them men in entrepreneurs of India can excel their efficiency, hardwork, or More employment as senior managers and owners. intelligence, provided they are opportunities are generated. given proper scope. Eco-friendly/ Bio-friendly Per-capita income increases. sectors Researchers contend that women business owners possess certain Indians enjoy a better standard IT sector specific characteristics that of living. promote their creativity and Event Management generate new ideas and ways of Education and awareness doing things. Women become common. Lifestyle sector entrepreneurs tend to be highly motivated & self-directed, they Future becomes brighter for Beauty and cosmetic also exhibit a high internal locus the next generation. of control & achievement. Healthcare Women entrepreneurs have the Women gain a better unique tendency to build and understanding of managing Travel and tourism sector maintain long-term relationships. family and business They have more effective concurrently. Food, food processing and communicational, organizational beverages and networking skills than their Indian women achieve a sense male counterparts. of self-realization and Telecommunications self-fulfilment. According to studies, it has been Financing observed that Women are very Women gain better ability to good entrepreneurs as they can take risks and business Plastic manufacturing maintain work balance in life. decisions. These factors may vary from Local and international trading place to place and business to Women become more business but women's confident. Property and estate entrepreneurship is necessary for the growth of any economy Highly educated, technically Factors Driving Women to Start whether it is large or small. sound and professionally Businesses or Join the qualified women must be Workforce Significance of Women in encouraged for managing their Women entrepreneurs are India’s Entrepreneurial Sector own business, rather than being empowering 50% of India’s Indian women have been at the employed in any outlets. The start-up ecosystem, driven by: receiving end of criticism but uncultivated talents of young women can be identified, trained Recognition: Recognition in and exploited for various types of the form of admiration, regard, industries to increase the esteem and renown motivates productivity in the industrial women entrepreneurs. sector as well as the nation According to a survey by Bain & Company, more than 45% of Indian women in rural areas 19 \\ Small Enterprise \\ Aug 2022

were driven to start a business women entrepreneurs from rate that is 0.25% below the for gaining recognition. semi-urban and rural regions, the base rate. The maximum loan government has brought forth application is Rs. 20 lakhs (US$ Results: Women-led start-ups severalschemes and policies to 26,468). provide 35% higher ROI enable women to start their compared to those led by enterprises. Some of these Udyogini Scheme: This men. This ability to generate include the National Mission for scheme is for women with an more returns encourages Empowerment of Women, the annual income of Rs. 1.5 lakh women to start their Prime Minister‘s Rojgar Yojana (US$ 1,985). It provides loans businesses. (PMRY), Entrepreneurial of up to Rs. 3 lakh (US$ 3,890) Development Programmes for women wanting to start a Fulfilling unmet needs: The (EDPs), Management business but have no capital. inherent need in women to Development Programmes and provide for the family is a key Women‘s Development Women Entrepreneurship factor. As they make 85% of Corporations (WDC). Platform: This is a flagship purchase decisions, the need platform started by NITI Aayog to provide a better lifestyle Government Initiatives to to promote women's motivates women. Encourage Women's entrepreneurship. The Participation platform hosts various Education: India ranks among The Indian government has workshops and educational the top worldwide for increased the budget for Women events to motivate women to producing female graduates in and Child Development by 14% start their businesses. the science, technology, in 2021. It has set aside over Rs. engineering and mathematics 30,000 crores (US$ 3.97 billion) in Pradhan Mantri Mudra (STEM) industry, with as many FY21. This budgetary allocation Yojana: Even though the as 40% of women graduating also includes various scheme was started to help from this field. Indian women development schemes as listed anyone looking to set up a are game-changers in the below. micro/small enterprise get an fields of science and institutional credit of up to Rs. technology. BharatiyaMahila Bank 10 lakhs (US$ 13,240), it was Business Loan: This type of mostly availed of by women. Fortunately, recognising the business loan was set up in significance of the 2017 to help women access It is estimated that over 30 socio-economic contributions of cheap loans and dream big million more women-owned despite their lack of resources. businesses are expected to 20 \\ Small Enterprise \\ Aug 2022 The scheme provides loans of provide 150–170 million jobs by over Rs. 20 crores (US$ 2.46 2030. This could be a million) for women game-changer and help the entrepreneurs. A collateral-free economic outlook look brighter loan can also be availed of for than ever. loans worth less than Rs. 1 crore (US$ 0.13 million). Dr.Kiran Kumari Patil Director, REVA NEST-TBL, Dena Shakti Scheme: This REVA University scheme was launched for women entrepreneurs looking to start their business in certain sectors such as agriculture, retail and manufacturing. The scheme provides loans at an interest

Startup Essentials INTELLECTUAL PROPERTY RIGHTS, CRITICAL FOR THE SUCCESS OF STARTUPS When entrepreneurs begin on their unique Entrepreneurs must understand that evaluating IP business idea, they do not doubt that their idea implications is not just about protecting the work would be a commercial success in the market; you are doing but, it is also very essential to their main focus is initially to start giving the check whether someone else has an IP for the appearance to the venture.In the middle of so same work. Very often, there could be people in many different things that go into starting and different parts of the world working on the same building a startup from a single idea, the word idea “Intellectual Property” (IP) is generally not just their main focus. And even if they think about IP protection, it seems to be too costly for a startup to work on. 21 \\ Small Enterprise \\ Aug 2022

Intellectual Property Rights obstruction, thereby helping you about copyright registration in prevent opponents, bigger to develop your venture faster India to ensure taking correct establishments/ companies from and more efficiently. IP always steps in the right direction. stealing/copying indications, has a high weight for the inventions, brand investors. Therefore, it creates a Works include; Books, lectures, names/trademarks, which in twist good reputation for your venture. dramatic and musical works, furnishes start-ups to broaden Moreover, IP identifies as the cinematography, drawings, and make profits with exclusivity main ingredient for startups paintings, architecture, sculpture, for a set period. Further, there is around the world to get a photographs, illustrations, maps, invariably a high probability of competitive benefit in the market. plans sketches etc. delivering enthusiasm to Rights: To distribute copies of investors, clients, and other There are three significant ways the work to the public by sale or stakeholders, for start-ups who in which a startup can protect its other transfer of ownership, or by have patented their core intellectual property: rental, lease, or lending and to creations and registered their perform the work publicly in brand name/trademark; since it Patents person or through an audio indicates high standards and transmission. “viability study” performed by the Trademarks Validity: It is not mandatory to Start-ups. register but is highly Copyrights recommended. The validity of Start-ups, due to their insufficient copyright lasts the lifetime of the resources, cannot opt to avail Intellectual property is an asset author and even till the 60 years themselves of the comprehensive for its creator and has a after his/her death. The owner is IPR protection. Therefore, the commercial value with it.If IP is given protection in most start-ups, depending on their correctly and strategically countries. industries and enterprise, must conserved then it can take the Trademarks analyze and prioritize their valuation of a company to a Trademark: At first, register a Intellectual Property Rights, completely another level. trademark online as this acts as a wherein such IP Rights play a brand element distinguishing significant role and sometimes IPR yields you the following your goods and services from happen to be the only accessible advantages investments with a start-up. those of your competitors and Failure to perform the same Can sell or license for creating other traders in the market. It might create an obstacle to the an additional revenue stream. creates a distinct identity for your smooth functioning of the company and thereby securing a enterprise, particularly between Offering distinctive the founders of the Start-up, products/services to your promoters, negotiations with the customers. existing and future investors, or while quitting the business. It can become an essential part of your marketing or branding In today’s competitive and (Exclusivity). fast-growing environment, IP can be a Unique Selling Proposition Intellectual properties are (USP) of the goods or services assets that you can use as which will help to create a security against loans. sustainable and protective differentiator for the company. Start-ups can legally protect your Intellectual property in Owning an IP, creates a high the following manners: Copyrights Certain protection is automatically granted to the author for their original, creative or intellectual work. Know more 22 \\ Small Enterprise \\ Aug 2022

brand from being counterfeited. Validity: Patent protection is a You can earn royalties by Marks: Wordmark, a logo mark territorial right and therefore it is licensing it or making money or a slogan, shapes, and effective only within the territory selling it. unconventional marks like of India (or the country where Use your trademark for colours, sounds, gestures, applied). Separate patents are strategic alliances. animation, holograms etc. can be required to be filed for each Start-up Valuation can be made registered under trademark. country where protection is based on IP Rights Rights: Gives the exclusive right required. A patent is valid for 20 New companies don't have to use the mark and prevent years after which it goes into the monstrous product stocks or anyone from using it without public domain. workforces, to begin with. permission. The owner also enjoys Subsequently, a large portion of the right to license, assign and sell It is best to consider IP as the estimation of a start-up, for the mark in return for something that offers an additive the most part, gets from their IP compensation. advantage that is beyond the rights. It has been assessed that Validity: 10 years which can be concept of making money or on the normal, over 80% of the made perpetual, as along as even branding for that matter. It estimation of a new business renewed every 10 years. Should is something with which the depends on their IP be applied separately in every business esteem is connected. portfolio.Protecting your IPR is country in which protection is Ensuring intellectual property is the best and the only way that required and has a market. also a common norm since it is helps you to create a sustainable Patents an asset. One of the and defensible differentiator in a Patents come to play when you quintessential business highly competitive market. are looking to protect a new components is to have IP invention that is original and can protection a part of budgeting Dr.Kiran Kumari Patil be used to simplify the lives of and business plans as well. Director, REVA NEST-TBL, people. REVA University Protecting Intellectual Property Condition: A patent requires an against any sort of idea to be novel and unique. The infringement by others. industrial procedures can be patented especially if a You can defend it in a court of non-obvious step is introduced in it. law to claim your sole right Rights: It gives an exclusive to it. authority over the patented Can legally stop others to use, invention, the right to exclude making, selling or importing others and exploit the patent and without your agreement. earn from it. 23 \\ Small Enterprise \\ Aug 2022

COVER STORY | Small to BIG UNLOCKING THE GROWTH OPPORTUNITY FOR MSMES In the current economic climate, unlocking gap can result in a low-income generation, higher growth in micro, small and midsize enterprises is levels of informality, and poor growth critical for the survival of businesses. performance. By 2030, there will be a global Globalization has introduced many new workforce of 600 million people. regulations and policies that have a direct impact on the way companies do business. In addition, as In India, micro, small and mid-sized enterprises India becomes more regulated, businesses are (MSMEs) represent a substantial part of the challenged with trying to comply with them. economy. They provide jobs for over 90% of Simplifying business processes and systems is people and contribute to national GDP and essential to unlocking growth in MSMEs. employment. Yet, despite their importance, MSMEs face several obstacles that limit their The future of work is highly dependent on the growth. These barriers can be overcome by performance of micro, small and mid-sized bridging the credit gap, improving value chains, enterprises, which are crucial for economic and increasing digitization. This article provides growth and employment creation. They also drive a practical guide to unlocking growth in MSMEs innovation in markets. In contrast, large in the Indian landscape. companies can invest in better working conditions and training, while MSMEs are more likely to struggle to compete in productivity. This 24 \\ Small Enterprise \\ Aug 2022

Government Should Offer the barriers to embracing new between traditional banks and Industry-Specific Support ideas. However, when supported registered NBFCs. In such a case, While governments and NGOs by the right resources and traditional banks would provide are working to support MSMEs, expertise, these MSMEs can thrive capital to MSMEs and participate they must understand the specific and expand during tough times. in their growth. needs of the various sub-seg- Furthermore, studies have shown ments to tailor support to their that MSMEs that incorporate Increasing Digital Literacy & specific needs. While some innovation are more likely to Infrastructure Along with government-led initiatives have survive and flourish in tough Contactless Methods been successful, others have times. Digital solutions can help MSMEs failed to reach the desired results. in the short run by providing By carefully analyzing the costs Bridging the Credit Gap with them with a cost-efficient way of and benefits of initiatives, the Help of Fintechs, NBFCs & handling transactions, delivering governments and NGOs can Banks goods, and facilitating financial identify the most effective It has been identified that services. Such a pandemic has solutions. This can be beneficial enterprises have credit changed the way MSMEs do to both MSMEs and their country. constraints and assumptions business, and online activity is set about how much money they to skyrocket. In order to increase Making Finance & Resources would like to borrow. The the productivity of MSMEs, the Accessible resulting gap in credit supply is government must develop the Micro, small and medium-sized larger than the credit available to right digital infrastructure and enterprises face numerous MSMEs, making it difficult to support them financially. The constraints, including a lack of identify the best way to bridge it. Digital Saksham Initiative access to finance. While access to launched by the Government of finance is a critical constraint, it is In such a scenario, fintech India in collaboration with also the second-most cited platforms can help bridge the MasterCard aims to empower barrier to growth in micro, small credit gap by providing access to these companies with digital and medium-sized enterprises. affordable, digital credit. The key tools and resources. This lack of financing hampers is to create a platform with the growth of micro, small and reliable digital data sets, low-cost In order to promote digitaliza- medium-sized enterprises in KYC, and a broader range of tion, governments should provide emerging markets and develop- sources of capital. Such platforms the right infrastructure for B2B ing countries. To help small-scale can provide a critical support transactions and utilize digital businesses flourish, governments system for the growth of MSMEs, tools to improve public services. must focus on making the most making credit more accessible. Large tech companies such as of their available resources. However, they must not only Facebook should also support have a digital platform to provide digitalization efforts and work to Welcoming Technology & access to credit but must also improve MSMEs' access to digital Innovations with the Help of provide the necessary tools to tools. Moreover, governments Stakeholders facilitate lending and access. should support the entrepreneur- For these reasons, unlocking ship ecosystem of MSMEs by growth in MSMEs requires a One such solution involves a providing funding and promoting concerted effort and support symbiotic partnership between skills development. However, the from many stakeholders. In many digital NBFCs and banks. This government should also see into cases, MSMEs face significant partnership would address the how they can support the growth challenges while adopting new credit needs of MSMEs in the of MSMEs through funding and technology. The lack of expertise unserved and underserved digital literacy. and resources are just a few of sectors. Another option would be to form co-lending models 25 \\ Small Enterprise \\ Aug 2022

Another important aspect of to unfavorable conditions, which While it is clear that MSMEs offer digitalization for MSMEs is a make them vulnerable to financial great opportunities and are more flexible way to engage with shocks. However, by empowering capable of building complete customers. Instead of relying on them with the necessary resourc- supply chains, the challenge is traditional \"social\" and \"in-per- es and the right incentives, they how to scale them and become son\" settings, businesses must can be more resilient than their globally competitive. The Govern- now consider incorporating larger counterparts. ment is working to level the innovative \"contactless\" delivery playing field for Indian MSMEs by methods. Ultimately, digitaliza- Besides providing access to facilitating access to advanced tion can support MSMEs by international markets, promoting technology and enhancing their improving their productivity, the internationalization of SMEs ability to add value to their reducing their costs, and increas- will enhance their productivity products. Moreover, the corona- ing their competitiveness. and competitiveness, which are virus shock has left the world essential for inclusive economic economy in a state of turmoil, Promoting Access to Interna- growth. Given their prominence which presents an excellent tional Markets Through Global in many countries, this is essen- opportunity for strengthening Value Chains tial. Global value chains (GVCs) India's manufacturing prowess While it is often assumed that are networks of firms that and positioning itself as an MSMEs are not fast-growing connect countries around the important hub in global value firms, they can boost ecosystem world through international trade. chains. resilience by improving value MSMEs can take up specific tasks chains. By providing regulatory in GVCs and participate in the - AVNI PORWAL backing and enabling sustainable entire production system. They practices, government agencies can be a significant source of can support the growth of employment and growth in a MSMEs. MSMEs are often subject country. 26 \\ Small Enterprise \\ Aug 2022

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COVER STORY | Small to BIG HOW CAN MSMES KEEP UP WITH THE MARKET PACE? The e-commerce sales cycle is one way to institutions often favor large enterprises over understand MSMEs' challenges. In an ideal world, small firms because of the lower risks involved. a buyer would click on a link; a fulfillment system Small firms have limited documentation to prove would select the product, fill out the customs their viability, and lenders may have a difficult form, and deliver the shipment to the buyer's time distinguishing profitable projects from doorstep. However, in developing countries, this unprofitable ones. Moreover, because they are not kind of convenience is still far away. The able to negotiate advance payments with weaknesses of an MSME's e-commerce sales cycle customers, they are often faced with payment differ from country to country. In some countries, delays. a weak link is in cross-border payment acceptance. Others fail to follow up on after-sales In such a scenario, it does remain an open service. question how can MSMEs keep up with the market without becoming obsolete? MSMEs' financial condition is fragile. Lending For MSMEs To Grow, They potential was limited by the size ability to overcome these Need To: of their local markets. In addition, challenges. However, a global Expand Internationally & SMEs often lack the resources view of a business's potential is Implement Good Governance necessary to conduct possible if it is prepared to take Many MSMEs have been comprehensive market research. on the challenges that will arise domestically successful, but their This can hinder a company's outside the local market. 28 \\ Small Enterprise \\ Aug 2022

Large companies may have an brand impact. the short term, the outlook for advantage in terms of the global economy remains organizational and business For MSMEs, digitalization has bright. structures, but in reality, micro, become crucial. To stay relevant small, and Nano enterprises are in the digital era, MSMEs need to Grow by creating a digital poorly structured across the leverage data from various visual presence - Digital country. Therefore, to increase systems. These technologies marketing enables MSMEs to their success, MSMEs should include microservices, APIs, the engage with their target implement formality and good OEM and partner ecosystem, and audience and build direct governance to strengthen their AI/ML. With an understanding of relationships. It provides a competitive advantage. By these trends, MSMEs can range of marketing tools and adopting good governance, SME customize their road map and communication channels that operators can participate in use the right technologies to enable businesses to build a public procurements, government achieve better business results. visual online presence. The services, and Public-Private presence of an MSME helps to Partnerships. For these aspects, it Here are three marketing build a reputation and trust is imperative that MSMEs drum trends that MSMEs should among their target audience. A up their business through focus on: digital presence allows corporate reach-outs. businesses to enter new Investing in digital markets and sell products or The Government has a number of infrastructure - The services across borders. policies to help MSMEs stay government is implementing There's no better time than the competitive and expand their policies to help MSME firms present to make an impact. market. The Government can help improve their IT infrastructure. MSMEs digitally by providing This has increased their Digital marketing is a dynamic financial support and easing red awareness of the importance and fluid environment where tape. It should also foster the of quality IT infrastructure. the ability to innovate is rapid digitalization of MSMEs. By According to an ITC survey, imperative. It requires leveraging public-private MSME businesses still fall continuous innovation and partnerships and building behind when it comes to web consistency. Cutting-edge ecosystems that attract investors, presence and email usage. By technologies constantly governments can help MSMEs 2025, digitalization will play a disrupt the digital world and stay ahead of the market. key role in scale and agility. are coupled with digital These changes will benefit marketing strategies to drive Stay Updated with the Latest MSMEs in multiple ways. measurable results. The Marketing Trends absolute aim of any business is There are several marketing Keeping up with the latest to maximize sales, returns on trends that are relevant for MSME trends in the marketing investment, and cost per businesses. While some are more environment - As the acquisition. Regardless of the relevant to certain types of international market enters business's size, the ability to businesses than others, many are 2025, the demand for native adapt to changing applicable to MSMEs as well. For products is expected to rise. circumstances can drive example, AI can be used for This facilitates a significant growth and innovation for the better business analytics and can opportunity for SMEs to business. help drive scale. MSMEs can also expand and diversify their make use of big data analytics, products. By enhancing the Conclusion: which can help them better exports of MSMEs, foreign MSMEs should focus on understand their users, allocate investors will likely be maximizing their potential to cashback, monitor supply and attracted to invest in them. build prosperous communities. demand, and create a meaningful This, in turn, will increase the MSMEs can help bridge the return on investment. But in 29 \\ Small Enterprise \\ Aug 2022

formal-informal divide, foster working capital at favorable MSMEs can flourish ahead of growth and build thriving terms. A recent study examining time while helping the communities. Unfortunately, the impact of micro-enterprise community around them grow many face a variety of obstacles. development in developing more and more. These include inadequate access countries found that the size of to capital, limited market size, firms had a positive impact on - AVNI PORWAL and inhospitable policy turnover. This was true for all environments. However, a active enterprises as well as number of large companies can micro-units. help build a robust ecosystem to support MSMEs. In some cases, By focusing on the these companies can provide above-mentioned aspects, 30 \\ Small Enterprise \\ Aug 2022

COVER STORY | Small to BIG MSMEs PLANNING AHEAD OF TIME A good preplanning strategy will not only help country. They contribute a substantial portion to you through a crisis, but it will also help you GDP, employment, and export. However, despite protect your employees, your business, and the these benefits, these businesses have faced economy in general. If you're a micro or small challenges throughout their existence. The recent business, planning ahead is essential to avoid pandemic highlighted the vulnerabilities of the major losses resulting from a crisis. It's also an MSME sector. Even those that survived the apt way to learn from past experiences and pandemic experienced substantial losses. That’s prepare for future crises. why it necessitates the need for planning ahead of time for MSMEs. Micro, small and medium-sized enterprises (MSMEs) are crucial to the development of any But how can MSMEs plan ahead Most of the MSMEs focus more concerns for MSMEs). To make of time? on building a newer customer sustainable and profitable To help these businesses survive base than sustaining the business relationships, it is and grow, they must develop a old/persisting customers. While necessary to maintain and sound business plan to manage new customers can enhance the embrace existing business their future. To do the same, they business turnover, the existing relationships. must focus on: customer base offers increasing potential while enabling cash flow It's simple to build strong Strengthening Existing Busi- (which is one of the biggest business relationships, but the ness Relationships next step is to maintain them. 31 \\ Small Enterprise \\ Aug 2022

Relationships take time to nurture outbreak began, but adapting to and weaknesses. and develop, and you must changes and inviting new oppor- maintain them to ensure success. tunities have helped many Being Open to Outsource or If you don't stay in touch for a companies survive this crisis. Offer Franchise while, they'll fall off your radar, MSMEs often lack access to bank One way for MSMEs to expand is and you won't receive their loans and rely on cash from to outsource. Outsourcing replies. Similarly, you must family members and friends. By enables micro and small business maintain relationships with supporting MSMEs through owners to focus on their core customers and suppliers. public-private partnerships, competencies and expand their governments can help ensure income. Outsourcing allows a As with any relationship, business their success and sustainability. company to run smoothly and relationships aren't permanent. MSME owners need to be aware gives the owner more flexibility as While people in them can be a of the ongoing schemes to make the business grows. Besides, good source of new business the most out of them. there are many resources avail- opportunities, they can also dry able to help small business up over time if the two of you Diversifying the Customer Base owners find the perfect outsourc- don't stay in touch. However, it's In order to ensure a long-term er. You can also franchise your crucial to maintain the same level sustainable business, it is vital to business if you want to expand of engagement with your diversify the customer base. It your market. business partners as you would involves finding a diverse group with friends. Don't let a lapse in of suppliers and customers. By Outsourcing can help MSMEs communication cause a PR doing so, you can make your reduce overhead costs. Franchises disaster. Stay on the radar by business more appealing to often outsource certain functions staying in touch through social potential buyers, demonstrating a to save money. They also allow media and sharing posts. stable future and a high return on franchisors to focus on the investment. However, diversifying franchisees and expand the Being Alert to New Opportuni- your customer base can be an business. Franchisors can reduce ties expensive proposition, so be sure costs by reducing the workload of Emerging trends are accelerating to consider the long-term franchisees. In addition to consumer behavior, and this benefits of each customer base. outsourcing, franchisors can change is affecting all businesses, enjoy the benefits of in-house including MSMEs. The recent There exist numerous examples employees. Franchisees can also pandemic has expedited this of successful companies that enjoy the benefits of outsourced digital change and has signifi- have found a niche and expand- services and increase their cantly impacted consumer ed. For example, Coca-Cola revenue. behavior across all categories. acquired Columbia Pictures in MSMEs must understand this new 1982 for $750 million. This Hiring in-house salespeople can world of customer interactions to decision to expand into an be expensive. Not only does it stay competitive and remain industry with no obvious overlaps asks for time and effort, but the viable. MSMEs can benefit from with its core business was a good costs can also be prohibitive if early planning and implementa- one. Seven years later, the aggressive growth is desired. tion of new strategies. company sold the movie studio However, outsourcing is a good to Sony for $3.4 billion. Diversifi- solution for moderate growth Information accuracy is crucial cation of customers is one of the rates. By hiring outsourced staff, during times of heightened most effective strategies to MSMEs can reduce their opera- tension. In such a case, MSMEs minimize future risks. To make tional expenses and free up need to remain vigilant for new sure you don't leave any money valuable time. opportunities. The economy has on the table when diversifying experienced a significant slow- your customer base, you must Outsourcing the marketing down since the COVID-19 identify your company's strengths functions of MSMEs can be an excellent way to increase their 32 \\ Small Enterprise \\ Aug 2022

efficiency. Franchisors will often source relevant talent and planning strategy, digitalization waive premiums in exchange for connect them to their business can help you address these sharing in the long-term value objectives. Digitalization is a challenges. add of the brand. Outsourcing necessary step for MSMEs to take will free up the business owner's to face future challenges. Howev- - AVNI PORWAL time to focus on other strategic er, this process comes with its issues. own set of challenges. Among them are cybersecurity issues, Conclusion asymmetric market power, and Developing digital literacy is infrastructure-related challenges. essential for MSMEs. They must The biggest challenges to be able to utilize technology-en- planning ahead of time are the abled platforms to keep up with technical and managerial aspects the latest trends and frameworks. of digitalization. With a good And they need to be able to 33 \\ Small Enterprise \\ Aug 2022

COVER STORY | Small to BIG ABOUT MSMEs BECOMING FUTURE-READY WITH PREPLANNED MEASURES & STRATEGIES 34 \\ Small Enterprise \\ Aug 2022

In today's environment, MSMEs are facing a Many of the issues that MSMEs face are based number of challenges, including tax reform and on their size and nature. The external global solidarity in fighting various business environment is murky, and one-fourth to issues. While this may not be enough, there are one-fifth of these enterprises are in jeopardy. measures that can help these businesses While there is some hope, some experts are weather the storm. These measures can provide predicting that demand will rise in the coming much-needed financial support to the MSMEs. years. This desolate outlook on demand and The financial aid for these businesses will go a economic growth can sap the confidence of long way in preventing job losses and boosting young entrepreneurs. business survival. One problem that is preventing consider. First and foremost, the Improve Resilience MSMEs from obtaining company's growth and This training should address adequate financing is the development should be based their specific challenges. information asymmetry in the on a strategy. It is imperative for Training should be tailored to financial system. While the firms an MSME to understand its the MSMEs' needs. General that ask for financing have an market and its competitors. In business management, risk understanding of their addition, a business plan should management, and diversification operations and repayment help it determine the size and of offerings are popular training capability, lenders are often not scope of its target markets. options. In addition, MSMEs able to evaluate their risks and should consider outsourcing distinguish profitable projects One area of concern for MSMEs part of their business. These are from those that are not. And is short-term stability. MSMEs the best ways to increase the because MSMEs tend to be must keep the long-term likelihood of success in the riskier than larger companies, scenario in mind and develop future. But, if an MSME doesn't financial institutions tend to crisis management systems. In have these skills, it may not be view all MSMEs as being risky. addition, MSMEs should plan for possible to grow a business. unforeseen risks such as climate While there are many aspects of change or a sudden pandemic. It's essential for MSMEs to crisis management that MSMEs The aforementioned challenges understand the issues they are face, one of the most crucial can lead to a change in business facing and identify their areas is the ability to survive and strategy for MSMEs. shortcomings. The MSMEs' bounce back from disruptions. growth and resilience can only Without the knowledge to deal While focusing on improving be ensured if they plan ahead. A with sudden events and recover systems and optimization, successful strategy should be quickly, they may suffer major MSMEs should plan for the based on a solid plan that losses. By adopting preplanning future. For example, it is critical identifies the challenges they measures in advance, MSMEs for MSMEs to understand how face and the potential can avoid huge losses during a much resources and finances opportunities that exist to help crisis and learn from the they will need to meet deadlines them grow. This training can be experience. This will also ensure and responsibilities. This means in many forms, including they are prepared for what the having a clear strategy for how face-to-face workshops and future brings to them. they will manage the cash flow webinars. and ensure the future viability of Planning Strategically to their business. The key is to have Planning to Scale Up with Ensure Future Success a solid financial plan, as a lack of Time When it drives to ensuring the cash flow can lead to the To become more profitable and future viability of an MSME, collapse of an MSME. generate more jobs, MSMEs planning ahead is essential. should plan to scale themselves. There are a number of factors to Investing in Training to This is essential if the business is 35 \\ Small Enterprise \\ Aug 2022

to remain viable. Besides, this MSMEs is vital for the future of members win, too. The business will enable it to create a the Indian economy. owner wins because they get to multiplier effect on the fulfill the aspirations of their economy. Recently, the A proper plan should help employees and enjoy a win-win COVID-19 crisis has hit the MSMEs cope with the ongoing scenario. The secret sauce of Indian economy, further pushing crisis. By planning for growth, success lies in establishing a it to the brink of collapse. This MSMEs will learn to leverage performance culture and crisis has triggered the loss of progressive human capital nurturing a winning team. jobs, economic contraction, and practices like job redesign. They financial exclusion of millions of should also plan to attract more High-performing companies are people. Therefore, scaling up customers and improve their driven by a feedback-rich cash flow. In addition, MSMEs philosophy. This philosophy should develop critical skills enables company leadership to such as foreseeing customer understand employees' thoughts volume scenarios. It is crucial for and opinions. In addition to this, businesses to learn how to these companies are led by handle the challenges that come effective leaders who reward along. They should have a good and recognize positive understanding of the challenges behaviors. They also encourage and opportunities associated open communication, empower with scaling up and becoming their employees, and collect more profitable. feedback. These strategies, if opted by an MSME, can help the Establishing an Absolute enterprise achieve the success Performance Culture that it is aiming for. When this To sustain growth, MSMEs must occurs, employees will be create a performance culture. motivated to work harder and This culture must align personal achieve higher goals. aspirations with business objectives. When the business delivers massive value to its customers, it wins - and its team - AVNI PORWAL 36 \\ Small Enterprise \\ Aug 2022



COVER STORY | Small to BIG WINNING THE BUSINESS LANDSCAPE BY BUILDING AN ABSOLUTE CUSTOMER COMMUNITY Developing a community around your products or natural disasters, which have a severe impact on services is an excellent way to get new customers. MSMEs. The ability to respond quickly and build a MSMEs that lack access to loans or finance can't strong community can help MSMEs survive a crisis, buy a sturdy retail space. Flash floods can wipe even during heightened tensions. It will also assist out all the inventory in one day. Animal breeders them to survive if they are forced to shut down. don't have access to weather forecasts, and drought can cause herds to perish. By building a Creating an everlasting customer community community around your products, you can create doesn’t come in handy; it asks for a handful of a lasting brand name and gain new customers. patience, a lot of effort, time, money, and some value-driven practices. The global supply chain can be disrupted by 38 \\ Small Enterprise \\ Aug 2022

To create a well-rounded and resource in understanding what customers will see that as fake tireless community of consumers want and need. By and untrustworthy. Instead, customers, you should: allowing them to contribute to they'll start looking for a new the creation process, brands can company that is able to keep Consider Your Customers as create new products, improve their promises and improve their Thought Leaders processes and strengthen brand lives. Recognizing your target identity. audience as well as developing A shared purpose is a common content that speaks directly to For example, LEGO has a purpose that everyone in an them are primary steps to community of fans, which it is organization shares. It inspires a attracting customers. Consider bolstering with the help of a new sense of purpose, collaboration, creating listicles or viral content initiative called LEGO Ideas. By and promotes social good. And as ways to engage with your letting fans co-create new it helps align the commercial audience. But to build a products, brands can build brand side of your business with the community, you need to use loyalty among consumers. Using social side of the equation. So, if your expertise to offer solutions customer co-creation can also you're ready to build a shared to common problems that are generate new product ideas and purpose with your customers faced by your target market. solutions for complex and make it a priority, take this Then, share it with your manufacturing challenges. This step. audience. You might even want approach has been successful to make it a game - you can post with all organizations, from While the idea of a shared your content to your social MSMEs to big corporates. purpose may sound like a cliché, media accounts, too! Make sure it's actually one of the most you produce fresh content Identify Your Shared Purpose powerful marketing tools to regularly! with Your Customers improve customer loyalty. The As a company, you have a need for shared purpose can fuel Once you've positioned yourself powerful opportunity to make a a brand's marketing campaigns across your customers, you'll be positive impact on your and increase customer able to reach out to your customers' lives. You can do this engagement. Leading companies potential client base and become through your core values by such as Adidas make it a point to an authority on your topic. By engaging your employees in a develop a shared purpose with addressing their needs and purpose-driven journey. Create a their customers, and the mission concerns, you can establish purpose-driven culture to statement they create is a yourself as a trusted resource in motivate team members and powerful example. It guides all your industry. Your audience will foster teamwork. Try to be as big aspects of a company - from its trust you and will remember and challenging as possible culture and code of conduct to your advice. Once you've earned when identifying your purpose. its business decisions - to make the respect of your target Rather than using industry them as aligned with its audience, your business will be jargon, think big. consumers as possible. able to market itself more effectively. A common misconception is that Include Your Customers companies must have a higher Alongside Your Business Revolutionize & Co-Create purpose if they are to grow Development Journey Your Brand Language & more. Unfortunately, the To develop a successful brand as Identity majority of companies aren't an MSME, you must understand Using customer co-creation can clear on this. They are quick to your customers and make them drive innovation and attract respond to social events and a part of your business media attention. A company's diversity numbers, but if they development. It is not enough to customers are an invaluable don't meet their promises, their be a good brand; you also need 39 \\ Small Enterprise \\ Aug 2022

to be a good company. To do consumer opinions. Investing in actions, messaging, this, you must be proactive, not your customers' opinions is a communications, and reactive. Make sure to respond smart move because they interactions will all help to shape quickly to customer concerns. represent your biggest asset. By the image they will have of you. Your customers should always be using the power of their voices the center of your business. to promote your brand, you'll -AVNI PORWAL Make sure to keep in mind that also reduce customer acquisition customers have very different costs, which determine your needs and preferences than you. profitability. Consumers be more likely to Your customers will surely trust suggestions from real appreciate the effort you put people than advertisements. into your brand development, More than ninety percent of and it's a sure way to create an people trust recommendations iconic symbol. The power of your from friends, while only seven brand will live in the hearts and percent of consumers rely on minds of your customers. Your 40 \\ Small Enterprise \\ Aug 2022

COVER STORY | Small to BIG NURTURING A GREAT COMPANY CULTURE The company culture embraces the complete organization working towards a single business corporate environment at your organization. goal. Culture indicates the valuable inputs that mark the organization apart from its competitors. Leaders need to train employees to make them understand the company vision by nurturing the The company culture represents the reputation of company culture. No one can impose it or copy it the business in the market, its staff, and the for the quality and growth of a business. Positive products and services that can affect your and strong company culture must be unique and customer base. A healthy and result-oriented flexible enough to get the association of the business culture keeps all the segments of the whole team as a part of its requisite change. Why have a company culture? worried about their future career the positive engagement and Company culture is the growing opportunities in the expected performance of the employees. It need of organizations that affects comfort of the workplace. The helps to retain the best workforce almost every corner. A satisfied problem doesn’t rest here but can in the organization. The culture workforce is the backbone of the be like digging the roots with the encourages the hike-up company. Without a strong rising negative upshot. consistent functionality of the company culture, the talent must employees towards the be lacking in finding the real That's why the corporate culture productivity and growth of the value in their work. They must be is an integral part of the business company. to determine success ahead with 41 \\ Small Enterprise \\ Aug 2022

Each company's culture is best gat workplace. The This action generates trust in different from one another as per culture must be consistent their company to have the their workplace environment. You under the guidance of the reason to work at the place need to peep inside and observe active leaders with an where they are valued. your workplace to find the assurance of the resources and following: other required healthcare Modify the current culture opportunities. Through this, It's better to revise the existing How do people interact in employees will get a positive company culture from time to your company? push to get engaged with a time to modify it for a better positive attitude and put their corporate culture. For this What level of conflict arises in efforts towards the company's employees views on like and the workplace? benefit. dislike about the company culture is a must. These views Is the flow of data flawless With the help of the health can be helpful for the between the departments or check-up camp, employees will modifications in the corporate segments of your company? get benefitted. There will be culture required to make a less absenteeism in the better workplace for them. Are the leaders dealing workplace due to sickness. correctly with the other leaders Employees can work for more Support social interactions in or employees during the work hours and result in quality the workplace process? production. A healthy and compelling company culture never gets Are the employees engaging Clear goal setting completed without the themselves for the Owners must make the goals interaction of employees. Each achievement of the company and company objectives in the employee must know about goal? presence of the whole team. their colleagues through some By this, everyone will be clear activity designed by the There can be many more aspects and can work towards the leaders. There can be like to look for as per the target with a specific set of happy hours, weekly team requirements. It's better to responsibilities. meals, and staff getting include the staff views to plan the together can be made a corporate culture before Assigning specific roles beneficial culture in the implementation. Conduct There can be a mission workplace. interviews to get an idea of statement with the core values happy workplace environment and inform the employee Encouraging perks culture in your company. about those. They must be The employee dedication and clear about their roles and effort must be recognized and Business owners can use the responsibilities and their awarded with the special perks following tips while building effects on the clients and the that can be a wholesome the corporate culture at their company. boost to the complete workplace: workforce to follow. Listen to your Talents Focus on employee health Employees feel secure when Benefits of a strong company and wellness they are assured that as heard culture Within a healthy body, a by their employers and healthy mind resides. None the leaders. They must be open to Talent recruitment organizations work without speaking about their problems The leaders agree to gain healthy employees. The and support instant action. good talent for the vacant mental, physical and emotional positions in their company due health must be up to the level to their strong company of the employees to give their culture. Every applicant wants 42 \\ Small Enterprise \\ Aug 2022

to be a part of the company. their employer because they Final words are a valuable team. So, are you ready to build a Satisfied employees strong and positive company The company culture for Freedom to work culture for your healthier employee wellness is eligible The company culture cares for workplace and high-engaging for satisfaction and will engage employee suggestions which employees? Do share your employees. will boost employee morale. experiences or valuable They are free to work with suggestions with us! Retain the talent more dedication and A positive culture helps the contribute to higher -BINDU potential talent to stay back in productivity. The positive the company. Employees get approach made the the workplace environment environment relaxing with comfortable and flexible as per fewer stressed talents at the their needs. They are loyal to workplace with happy faces. 43 \\ Small Enterprise \\ Aug 2022

COVER STORY | Small to BIG CHANGE MANAGEMENT Change management isn’t just an exercise for big What is the reason behind the failure? What are companies in the middle way of transition. the improvement steps that can be the milestone Smaller businesses need to help and guide their to the change management of a company? The employees through change. The businesses fail in team is here to assist you with the resolving the execution phase of the change management options that can trigger your process to find the efforts as per the explanation from the team of successful implementation of the change effort. senior managers. What is meant by Change of the focused goal into a process needs strategic Management? successful deal. guidance. Change Management is the management of processes It’s the company's way of The concerned strategies organized for the organization's handling the required processes function of the company will transformation. Even defined for internal or external change. affect the change. It can train the infrastructure of the company The modifications in the existing people to adjust to the company with correct planning and system may be implementing the in the situations. That can help in implementation procedure turns new technology that gives you a controlling the change. The shifts the transition and transformation result-oriented effect. This in the organizational hierarchy 44 \\ Small Enterprise \\ Aug 2022

may affect the change process. consequences that can be implementation plan can have unfavorable to the employees sub-plans or stages to cover. What challenges can be the or the executives. These hurdle for the change? people can oppose the Regular checkups and The company culture expects the change initially. A powerful feedback for the steps taken change to be focused and initiative such as planning, and finding gaps can help to structured before the training, transparency, and initiate action on resistance in implementation. The concerned patience for the correct the pathway with patience. areas may be the teething implementation will solve the challenges for your Change issue with the confident Analyze results and the Management. millennials. percentage of progress. Communication gap: Many Planning Issues: One must Keep a place for modification companies fail to share decide the duration of the based on the analysis of the change with the workforce on change. Companies may be previous step. time. In such a case of comfortable with mismanagement, structured short-duration change as they Each milestone has to fetch communication infrastructure feel it is more effective and the correct set of is on-demand to handle the less risky. Other companies re-implemented actions based sending of messages. move to solve rising issues for on the previous observations. the change and other Managing Resources and problems in the These steps can produce benefits assets: keeping records of the implementation process. from the existing state of human resource, financial company culture to the desired resources, physical resources, Affected Parts: Organization management change. valuable resources as assets, must be clear for the and other information application of the change with What can Change deliver to resources is beneficial. The the prediction of the other your organization? resources are necessary for affected areas. On-time Through the stages of the the planning stage of the implementation of the counter change implementation, you can change. The management of plan can help recover the achieve the advantages of a the assets becomes disturbing rising issue from another cost-effective management in the absence of the required corner of the organization. change. Change can have quality plan. strategies to manage time wisely What is the correct flow of during the process. The complete Volunteers to new change implementation? execution of the change can technology: If the new generate innovative skills earned technology is in the system, it Detect and confirm the reason by improved leaders and raises may disturb the daily schedule as goals for the Change morale. of the workflow. Select an Management in the efficient group of volunteer organization. Some spotted benefits can be employees who can win the the achievement for the technology to their peers or Make an effective team of organization. colleagues to make the system efficient leaders with the get adopted. correct designations and Organizations can find the responsibilities. reason for the change. The Resistive Force: Any change procedures of the business are can bring a bang of an First, develop and then re-structured for the unwanted set of extra channel the implementation betterment. workload and other program/models. Organized documentation If possible, the belonging to the company 45 \\ Small Enterprise \\ Aug 2022

infrastructure and the system Analysis and critical thinking your leaders and employees be makes the workflow easier skills are polished towards a the reason for the change? Share through the stepwise better workforce in the your views or suggestion in the approach. company. comment section. The best way to understand Here, the best skill that the -BINDU TIWARI and learn is to bear skills from owner, executives, and owners mistakes for a better result. get honored for is team balance and working towards Developed tolerance level to a single goal to adapt to the establish trust in the team change. with the solution to the resistance. Conclusion If you are ready with the Each stage is well defined and guidelines with stepwise inherited in implementation implementation and corrective by the team. measures, your organization will get better Change Management. Organizations can set goals Do you want the system to help for change. 46 \\ Small Enterprise \\ Aug 2022

You aspire to Grow We aspire to be your sarthi in your journey Unlock your True potential With Our Consulting Services Marketing & Branding Strategy Consulting for cost reduction Advisory for Automation in manufacturing Digital Transformation of business Competitive business planning Operational Excellence Procurement consulting Support for MSME schemes Leadership training as required ` Darshana Thakkar –Founder & CEO +91-9106708639/91-9824484945 508,VCCI Building , GIDC, Makarpura, Vadodara-390010, Gujarat Website: www.transformationstrategyhub.com E-mail : [email protected]

COVER STORY | Small to BIG NEED FOR MSMEs TO TURN TOWARDS TECHNOLOGY As the economy slows and trade slackens, MSMEs technology, MSMEs can enhance their need to focus on restructuring strategies. To do competitiveness and adapt quickly to new this, they should embrace technology to foster challenges. This article will highlight the various with time. Developing this capability will help benefits of implementing technology to support them deal with economic burdens, supply chain their growth. disruptions, and more. By taking advantage of Here’s How Technology Can Help Digital transformation involves unbiased, up-to-date content for MSMEs Strive and Scale more than adopting new their subscribers. Today's consumer behavior is technologies; it also requires rapidly changing, and digital trends creating environments that In addition to the given benefits, are accelerating the pace of these encourage and facilitate innovation. the adoption of new technology changes. The pandemic has Digital transformation is vital for also brings with it many affected consumption patterns in MSMEs, the backbone of the advantages. Cloud computing, for all categories, and businesses must economy, and they need the example, enables MSMEs to tap learn how to engage customers in proper information and support to into the global marketplace without a new way. There are many ways to maximize their potential. incurring huge upfront costs. encourage and accelerate the Thankfully, many digital platformers Moreover, e-commerce allows adoption of digital technology for are in close contact with a range of MSMEs to access a much broader MSMEs. MSMEs and are able to provide consumer base, and digital 48 \\ Small Enterprise \\ Aug 2022

infrastructure helps them increases buy-in from team investment. Tax reliefs and collaborate and share data. members and enables them to government investment will provide constructive criticism to encourage MSMEs to adopt AI. MSMEs Should Be Ready to each other. These productivity Address the Recent tools are also useful in reducing AI solutions will provide visibility Pandemic-Like Circumstances travel expenses for sales and into manufacturing irregularities In the context of a marketing activities. With the help during the initial stages. These COVID-19-induced lockdown, of online collaboration tools, technologies will help identify MSMEs should explore how employees can share ideas even if defects early on, preventing value technology can help them adapt they aren't in the same office. bleed and ensuring quality to and address this situation. Using productivity tools can also standards for global markets. AI MSMEs can use digital platforms reduce operational costs. Some of will also help them improve their to reach out to new customer these tools are available as SaaS management of expenses. segments, increase distribution, subscriptions. Cloud ecosystems Traditional business models are and leverage temporary for digital tools have made the use difficult to quantify future workforces. In addition to of these tools easier for MSMEs. operational costs. AI-aided adopting innovative technologies, The use of these tools will allow working capital management will MSMEs should adapt their MSMEs to increase their visibility forecast overheads with high business models to the current in global markets and improve accuracy. situation. The resulting changes their sales. will prepare them for future ML and AI shocks. By focusing on their own Now is the Right Time for Machine learning can be a major capabilities and overcoming MSMEs to Enter AI, ML & IoT help for MSMEs. Large constraints, MSMEs can help boost Landscape organizations have research economic growth in low-income Already, the survivor MSMEs have departments that can spend weeks countries. adapted to new business models or even months investigating and developed new ways to competitors and customers. ML, MSMEs can leverage their provide useful services to their on the other hand, can give you employees' ability to work clients. Digitization has benefited insight in minutes. Its combined remotely to scale their business. many struggling MSMEs by use with AI and other technologies Cloud ecosystems have also made lowering interest rates and can improve the customer the use of digital tools easier for delaying tax filing dates. experience, decrease costs, and MSMEs. With cloud services and increase quality. software, these tools can help Artificial Intelligence and MSMEs to improve their Robotics Artificial intelligence and machine productivity and scale their These technologies are helping learning have improved loan operations. All of these MSMEs achieve a variety of decisions for MSME lending. For advantages can help organizations operational competencies and example, machine learning and AI to scale and stay competitive in competitive edge. With this combined can help lenders make today's increasingly uncertain growing use of AI, business better decisions without having to environment. owners can expect increased review business documentation. productivity, efficiency, and The advanced technology of ML MSMEs Can Enable Constructive accuracy. AI, like any new and AI is able to combine a variety Collaboration Through the Right technology, will require careful of demographic and social data Tools implementation and systemic data sources to create accurate lending MSMEs should focus on improving capture. MSMEs are the backbone decisions for MSMEs. It can also communication and collaboration of emerging economies. In India, help bring more businesses into between team members. The use the government is focusing on the formal lending process. This of collaboration tools also them with incentives and technology is just the beginning of 49 \\ Small Enterprise \\ Aug 2022

its potential for helping MSMEs. from afar. In addition to enabling the target market. However, most better productivity, IoT also makes businesses cannot find these AI is increasingly popular in it easier to manage costs, demographics without the help of customer service. In fact, it is innovate, and create new business data analytics. predicted that AI chatbots will models. overtake 95 percent of online Data management and analytics customer communication. The The use of IoT technology can can help MSMEs track which software is able to understand improve fleet maintenance and products are selling the best and human emotions and conduct transportation while helping when they are most popular. With conversations, which makes it an MSMEs better understand their the right data, MSMEs can find out effective tool for helping MSMEs target demographics. Additionally, when they should market their overcome budget constraints. By IoT devices can be used to products. They can also dig up using AI chatbots, MSME recruiters monitor the performance of information on how to segment will be able to find the best existing products and to predict the market and what times are candidates and improve retention when they will need repair or busiest. These insights are rates. As AI is used for recruitment, replacement. Ultimately, this will invaluable in the process of MSMEs will be able to achieve make the world a better place to improving efficiency. If MSMEs use greater customer engagement. live and work. data management and analytics in their businesses, they can better IoT can help MSMEs by enabling Data Management and Analytics target and develop the right smarter products and services. Data-driven decisions are the key strategies to expand their market. Currently, MSME owners manage to a successful business, and the the vast majority of the functions right information can be Conclusion in their companies, including harnessed to improve operations. With limited resources, MSMEs production, labor, and suppliers. Data analytics is vital for MSMEs, must innovate to stay competitive. The owner's time and ability to especially those that are dealing As their market demands change, deal with these operational issues with only one or two domains. they must respond with new can limit the MSME's growth. With One important factor to consider technology, services, and IoT, MSME owners can monitor is understanding the processes. Innovation is the key to and control shop floor processes demographics and sentiments of MSME transformation and growth. It makes use of human, technological, and financial resources to meet the challenges of a constantly changing business environment. It is important for MSMEs to embrace new technologies and think strategically about how they will benefit their business. This transformation process involves changes in business practices and a culture of failure. - AVNI PORWAL 50 \\ Small Enterprise \\ Aug 2022