Small Enterprise Magazine June-2023-Digital

- There are only a few for an extended period in the specific instances. On the areas where people from hope that it will eventually be other hand, the absence of a India might be the worst in resolved. legitimate legal option that the world. Contract could be used to enforce a enforcement is but one - Some individuals may try contract emboldens parties to example of this category of to resolve their issues through breach contracts since they activities. Why does India the criminal justice system. know they may get away with have such a poor score They may be doing so to lend it without any consequences. regarding the enforcement of an air of criminality to contracts? contract enforcement matters - In situations like these, because the civil justice mediation is not likely to be - In the first place, the system is hopelessly slow and helpful. Arbitration is one of culprit is India's painfully of no practical use for most the options that may be sluggish legal system. The individuals. available; however, even in civil justice system in India India, arbitrations have been moves at an exceptional - In 2016, according to plagued by exorbitant prices snail's pace. The inefficiency data that were made available and dreadful delays, which of the criminal justice system to the public by the National prevents the average citizen is the subject of much Judicial Data Grid, there were from having access to discussion and has garnered still two crore cases being arbitration. Because of these significant attention from the processed by district courts in factors, large corporations media. Consequently, an India, with a third of those sometimes prefer to take their attempt is made to speed up cases involving civil matters. arbitration cases to the criminal justice system. At the time, industry jurisdictions like Dubai and commentators predicted that Singapore rather than India. - Even though it moves at a the district civil courts would pace that is several times never be able to clear their Transforming Business and the slower than that of the case backlog at the rate at Insolvency System criminal justice system, the which they were currently civil justice system has, working. - The Insolvency and unfortunately, been given Bankruptcy Code has stepmotherly treatment over - Do you intend to pay a fundamentally altered the the years. There has not been hefty court charge, spend legal framework governing a proportional rise in the money on attorneys, and then insolvency proceedings in number of judges or courts wait a significant amount India. As a result, it has despite the enormous growth before receiving a judgment? helped instill better of the economy, which has at In India, bringing a civil case confidence in the corporate least quadrupled in size over is not an alternative worth resolution approach by the last 20 years, if not more. considering if you wish to making the insolvency avoid an outcome like that. process sustainable, efficient, - Because of the dire Because of this, most persons and value-saving. This was situation, the number of civil dealing with a breach of accomplished by replacing a lawsuits that have been filed contract are left without any bankruptcy legal framework has decreased rather than feasible remedy. that was quite inefficient. increased over the past decade. This is because - The other choice, also - An organization has been individuals involved in available, is to participate in a established by the Insolvency disputes do not see the point procedure for alternative and Bankruptcy Board of India in dragging a matter through conflict settlement. Mediation (IBBI) with the mission of an expensive court procedure may be an option for regulating, developing, and resolving certain disputes in reviewing insolvency policies, 51 \\ Small Enterprise \\ Jun 2023

as well as the realities of the epidemic; nevertheless, in the government differentiated market. It is arguable that the here and now, and especially between errors committed in IBC, together with other key in the long future, this will good faith and those legal reforms brought about prove to have been an committed intentionally in in recent years, such as the appropriate change. bad faith. The objective was Goods and Services Tax to penalize the former and regime, is responsible for - Because of the difficulties criminalize the latter to increasing India's ease of posed by the system, there establish a culture perceived doing business currency and has been a persistent desire in to be free of factors that is helping it emerge as a India for a significant revision could deter investment. 'Made for World' platform. of the nation's insolvency and bankruptcy laws for a very - Importance of the - The Prime Minister of long time. This demand has International Business India attributed the rise in persisted because of the Communicator Foreign Direct Investment obstacles posed by the (FDI) in India in 2019-2020, system. The increasing - The introduction of an expected to reach nearly number of cases waiting to be increase in the number of $74.5 billion, to the recent heard in the legal system measures that make it easier reforms implemented over could be addressed by to conduct Business in India is the past few years. implementing changes to the the aspect of the IBC law that IBC. is considered the most - This represents a important. Establishing the significant increase of - Reducing the likelihood Indian Business Council (IBC) approximately 20% from the of imprisonment for actions has been essential in India's previous fiscal year or omissions that are not prominence as a \"Made for (2018-2019). As an necessarily fraudulent or the World\" platform. It has instrument of empowerment result of mala fide intent is significantly contributed to to support regulated firms, another factor that the exponential improvement the IBC emphasizes not just strengthens the need to of the country's business simple liquidation but rather a overhaul the current climate. time-bound resolution of any insolvency regime. This would issues that may arise. decriminalize minor offenses, - The Insolvency and Creditors have expressed a benefiting the judicial Bankruptcy Code (IBC) has higher level of trust in the system's functioning. fundamentally changed how company's ability to insolvency is handled in India, effectively retrieve their - Because many criminal resulting in major investments thanks to the punishments that are improvements in resolving company's efforts. punishable with imprisonment insolvency. for minor offenses act as - The primary purpose was major disincentives for - It has increasingly to make it possible for a investors and because the IBC emphasized time-bound bigger amount of credit to does not use imprisonment as resolution as it focuses on a flow more freely inside India a form of punishment for time-bound resolution, rather while simultaneously working minor offenses, some criminal than liquidation, as an to promote confidence penalties that are punishable enabling tool to support between investors and those with imprisonment for minor enterprises falling under its who were the recipients of offenses have been purview. This is because it that loan. The IBC was put on eliminated. recognizes that creditors are hold for a short period more likely to accept because of the COVID-19 - With the assistance of the time-bound resolutions. reform, the newly formed 52 \\ Small Enterprise \\ Jun 2023

- Creditors now have the outsourcing. India has reaped such children. It is the most opportunity to recoup some the most benefits from these important factor in of their investments in services compared to any accelerating global warming companies that are either other country. and is responsible for being liquidated or going one-third of all greenhouse through the resolution - If the government were gas emissions worldwide. process thanks to the new to stop spending money on regime, which is responsible subsidies, research conducted - Doing Business 2020 for successfully instilling by the Brookings Institution announced by World Bank confidence in the corporate found that during the next resolution methodology and, five years, the country's gross -VISHAL as a result, has created this domestic product (GDP) opportunity. growth rate might reach 12-15%, which would be an - The establishment of an improvement. institutionalized creditor-in-control - Today, India is the third mechanism is yet another largest importer in the transformational structural world, behind only China shift. This change was made and the United States. possible by the Insolvency and Bankruptcy Code (IBC), - According to the report, which provides an India has the 63rd spot in the institutionalized world list, making it the creditor-in-control second most populous mechanism for reorganizing country after China. The and resolving insolvency education level of the corporate entities, including population in the country, the corporate debtors (CDs) and quality of the health care personal guarantors. As a system, and the number of result, there is a smooth flow children in the country who of credit throughout India are under the age of five are due to a significant rise in the three factors that are used trust from investors and to determine the rankings. investees. - Since the previous rating Conclusion was done in 2010, the country - The outsourcing of work has made great strides in in the field of information educational performance. technology is also a India came out on top of the significant contributor to the countries rated for their Indian economy. As of 2015, health care systems. the United States holds an 85 percent market share in IT - The country's population and business process of children under five is sixth on the list of countries with the highest proportion of 53 \\ Small Enterprise \\ Jun 2023

54 \\ Small Enterprise \\ Jun 2023

OBJECTIVE BENEFITS TO MSMES To provide financial assistance and support for green • Global competitiveness and brand recognition in the projects in the MSME sector as aligned to nation's market commitment to reduce Green House Gas (GHG) emissions • Better work environment • Better profitability by reduction in energy & LOAN AMOUNT environment related cost • For MSME - Maximum loan -Rs. 20 crores • Risk sharing facilities available for EE/Greener/ • Service provider or aggregator subjected to Cleaner Projects MSME linkage - Rs. 50 crores ELIGIBLE BORROWERS KEY FEATURES • RESCOs, ESCOs, EPC companies and vendors or any • Concessional interest rate as per rating MSME on either Supply or Demand side of Green • Maximum repayment period up to 10 years Value Chain • Quicker Sanction • Upto 100% funding for smaller projects upto Rs.5 • MSMEs Executing projects or providing services, related to the activities eligible under the scheme to crores with Cash Collateral in the form of SIDBI FDR various government bodies on BOT, BOOT, BOOM, • For larger projects, upto 90% funding with 10% PPP etc Promoter's Contribution To Know more, visit our nearest branch. Locate us at: www.sibdi.in Follow us on SIDBlofficial sidbiofficial sidbiofficial SIDBI Official ACTIVITIES COVERED SIDBI (Small Industries Development Bank of India) • Renewable Energy Small Industries Development Bank of India, • Energy Efficient Buildings Green Climate and Energy Efficiency Centre, • Cleaner Transport 10th Floor, Atma Ram House, 1 Tolstoy Marg, New Delhi-110001 I • Waste Management Telephone: 011-2344 8300 I E-mail: [email protected] • Resource and Energy Efficiency Measures • Waste Water Treatments • Cleaner means of production • Any new & innovative project with a potential for climate change mitigation or ensures Sustainable Development Goals (SDGs)

COVER STORY | EASE OF DOING BUSINESS HOW INDIA PLANS TO GET INTO THE TOP 50 GLOBAL RANKS India is a country that is still in its youth and For India to be successful in accomplishing this possesses a vast amount of potential that has not objective, it must place a primary emphasis on yet been realized. This potential can be seen in the developing a variety of public service sectors, such country's rapid population growth. It is the most as the country's educational system, its physical populous democratic nation, and its economy is infrastructure, its medical system, and its legal expanding lightning fast. system. These efforts have been undertaken to bring India up to par with other countries globally. However, despite its quick expansion, it still has a In the following article, we will talk about some of long way to go before it can reach the top of the the steps that can be taken to accomplish that worldwide list as one of the world's most objective. successful nations. Even though it is one of the economies expanding at the quickest rate globally, this is still the case. Urbanization: The Rise of Suppose urbanization was to be revenue.Urban planning can Smart Cities carried out effectively in terms help reduce poverty levels and Urbanization is one of the of infrastructure expenditures improve access to and the primary contributors to India's and increases in labour force quality of essential public economic growth and productivity by the year 2025. In services such as healthcare, development, and it is also one that case, estimates from education, and others, of the fastest-growing McKinsey & Company suggest it increasing prosperity levels demographic trends in the might generate up to one trillion across all Indian states and country. dollars in additional yearly boosting their respective 56 \\ Small Enterprise \\ Jun 2023

economies. economy because they equip Schools). individuals with the knowledge Urban planning can also help and abilities necessary to Additional initiatives include improve access to essential compete for employment the Right to Free and public services. India's possibilities within their Compulsory Education Act of government has initiated several communities or countries. 2009, which aims to provide projects, one of which is called free elementary-level the \"Smart City Mission.\" This In addition, those who have education to all children mission's primary objective is to attained a certain degree of between the ages of 6 and 14. improve the quality of life in education typically have greater (An Act of 2009 Concerning the India's metropolitan areas by productivity rates, ultimately Obligation to Get a Free and combining comprehensive lifting them out of poverty levels Appropriate Education). urban planning with innovative while improving their general technology-based solutions. living standard. In addition, a variety of scholarship programmes have This programme also Recent years have seen the been established, which make emphasises citizen participation implementation of several it possible for students who by utilising effective methods of educational reforms, the primary come from families with lower service delivery, such as those objective of which has been to incomes to access higher that entail community increase access to high-quality education opportunities, even participation in crowdsourcing education throughout India's those offered outside the and other activities. This could states, regardless of individual country, ultimately leading to an lead to improvements in social or family income levels or increase in the country's human capital within cities while also cultural backgrounds. capital capabilities. Even though making them attractive business more work to be done, the goal centres contributing positively Some of the new programmes should be to ensure that to the overall GDP growth rate. being implemented aim to everyone has equitable access to provide free meals to great education nationwide. Education Reforms: Making schoolchildren during the school sure that everyone can get a day. This will allow children from Infrastructure Advancement: good education less fortunate households to Bridging Digital Divide Reforms in education are attend school without worrying The development of any nation's essential to the expansion of the about hunger(Ministry of infrastructure is a vital aspect Education And Literacy In when it comes to the development of any nation, as it assures the efficient operation of the nation's transport and communication systems, as well as the provision of power to not only metropolitan regions but also rural parts. During the past decade, significant improvements have been seen in terms of roads, railways, and the telecom industry, which together accounted for 27% of total FDI inflows from 2016-2019, according to data from the OECD. 57 \\ Small Enterprise \\ Jun 2023

On the other hand, due to the amongst its citizens. lower socioeconomic classes unequal distribution of internet who cannot afford expensive services across the country, Health Care Improvements: treatments due to a lack of there is still a significant amount Making sure everyone can affordable ones. of work to be done to bridge afford healthcare the digital divide between Finally, improvements in health This is primarily because the people living in different regions care play an important role in private players market of the country. This is especially the sustainable economic dominates, setting prices at high true in rural areas home to most progress of any nation. This is levels that are unaffordable to of the country's population. because population leads to large sections of the population, increased productivity rates, especially underprivileged In recognition, numerous both in terms of physical and sections Various government incentive programmes have mental capacities, and healthy initiatives, such as the Ayushman been launched to encourage forces attract more foreign Bharat scheme, are focusing on private companies to invest in direct investment inflows, which providing universal health the telecommunications sector contribute positively to the GDP coverage population, not just in further. growth rate (World Bank Group major urban centers but also in 2017). remote rural regions as well. These programmes aim to push the infrastructure advancement Currently, only 28% of total This will allow large populations process forward, particularly healthcare expenditure is being previously excluded access to about the development of 5G met through central funds, while the necessary medical networks, which will ensure the remaining 72% is mostly treatments without worrying wider spread internet access borne by households. This about their costs, which can even in rural and remote areas results in high out-of-pocket result in astronomical medical of the country, thereby helping health spending among most bills. This will improve the lives to bridge the digital divide households, particularly those of of many disadvantaged sections 58 \\ Small Enterprise \\ Jun 2023

of society, boosting the bureaucratic reforms to well-being in the future. Political economy and cultivating a technological advancements to democratic stability economics sustainable future. (World Bank infrastructure developments to prosperity. Group 2017, Ayushman Bharat social welfare programmes. Scheme 2018). -VISHAL However, these changes must Conclusion be done minding the fact that In conclusion, it is clear that sustainability is central moving accomplishing the complex task forward because a clear of progressing towards the sustainable development global ranking of 50th position framework is a key factor requires concerted efforts on shaping success for any nation's several fronts ranging from future well-being both in terms good policy implementations to of well-being now and 59 \\ Small Enterprise \\ Jun 2023

COVER STORY: | EASE OF DOING BUSINESS EASE OF BUSINESS AND FDI INFLOWS No country can stay in isolation. In the contem- However, companies look for marketplaces that porary world, countries need each other more offer beneficial regulations and simple policies to than ever for trade and cooperation on various Ease their work. For this reason, countries like issues. But, business is the most significant area India, intending to attract foreign investors, have of cooperation among nations to increase tried to lure them with conductive policies. employment and flourish economies. In this article, we will understand how the Looking back at history, the 80s and 90s initiative for Ease of development has boosted witnessed countries opening up their economies FDI in India. for the world. Countries that did not keep up with the change ended up hampering their economic growth. Status for Ease of Doing companies. Mainly, in recent foreign companies to set up Business in India years the Indian government manufacturing units in India. The Indian economy faced a has seriously made decisions The government tried to work severe crunch in 1991 when it for ease of doing business. on promoting innovation, made a historic decision to skills development, open its economy. Since then, Despite having a massive world-class manufacturing, the government has been marketplace for foreign and modern infrastructure. trying to implement companies, India was only a conductive policies for station for assembling parts In terms of reforms, the simplifying regulations and by them. So, the 'Make in government made several guidelines for foreign India' Program was a serious legal amendments to flagship program to attract regulations. It included 60 \\ Small Enterprise \\ Jun 2023

favoring the liberalization of summits and several global When India Ranked 63rd in guidelines and simplifying programs around the country. the Ease of doing business by rules. More than 39,000 For it, invitations were sent to the World Bank, its result was compliances were reduced. the top global brands to reflected in 2022 with a rise Moreover, 3,400 legal participate in them and for in FDI. As a massive provisions were the making of a 'new India.' implication, India received decriminalized. All these the highest-ever FDI inflows actions were attempts to As a result, India jumped 79 of $84.8 bn for FY22. improve the ease of business positions from 142nd rank in Alongside this, the in India. At the same time, 2014 to 63rd rank in 2019 for government reports that FDI digitalization and labor WB's Ease of doing business inflows in the country can reforms made hiring more rankings. exceed $100 billion in versatile. 2023-24. All these decisions promoted It is one of the effective ease of doing business in the A total of $84.8 billion in programs with the 'digital country. After this, let's FY22 came from 101 India' campaign to transform understand the increase in countries. On the other hand, the country and make it the FDI in India. the investment was made in new 'factory of the world.' It 31 states and the US in India, included organizing investor Increased Inflows of FDI In reaching every corner of the India 61 \\ Small Enterprise \\ Jun 2023

country. At the same time, 57 The initiatives for 'Ease of emphasized the 'Ease of sectors across the country doing business' by the Indian Doing Business\", aspect by received its benefits. The government attracted its easing regulations, industries that received the highest foreign direct introducing the 'Make in maximum benefit were investments from Singapore India' initiative, promoting computer software/hardware, with US$ 14.67 billion. Apart skill development, and the Service sector, R&D, from that, Mauritius (US$ organizing summits to invite Construction, and 8.24 billion), the Netherlands investors from around the Automobile, among others. (US$ 6.50 billion), USA (US$ world. In turn, it increased Nowadays, India is a part of 4.22 billion) brought Foreign Direct Investment in the 100 clubs of Ease of reasonable amounts of India to a record high, Doing Business. investments. Moreover, the benefiting the Indian top global brands like economy. In the post-covid era, India is Google, Foxconn, Amazon, becoming the preferred and Facebook were on the list -SAKSHI destination for foreign of investors. Some Indian sectors. The equity inflows in companies that benefited the manufacturing industry from the FDI include Byju, have increased by 76% in which received US$ 500 comparison to the previous million from US-based private year, which represents equity company Silver Lake. massive growth. Similarly, SoftBank Group blended US$ 150 million into How have strategies for the ed-tech platform Ease of Doing Business Unacademy. Increased FDI in India? In the rapidly growing If we look at ‘Construction digitalized world, the ability Permits’ in India, it moved to attract FDI is highly from 184th rank in 2014 to significant. It is an important 27th in 2019. This was aspect that impacts the primarily a result of easy growth of a country's procedures for companies economy. India, as the that decreased their time to fastest-growing economy in get permits in the country. the world, is on its path to Similarly, the country's rank becoming the fourth biggest improved in ‘Getting economy. Consequently, it Electricity’ from 137th rank in has a lot to offer foreign 2014 to 22nd position in investors for its growth. At 2019. the same time, India's young population, with a skilled Summing up workforce and investment The Indian government has incentives, is a golden taken active steps since 1991 opportunity for foreign to open its economy to the companies. world. Also, it has 62 \\ Small Enterprise \\ Jun 2023

COVER STORY: | EASE OF DOING BUSINESS THE LEGAL AND REGULATORY ASPECTS OF DOING BUSINESS IN INDIA India presents a wealth of opportunities for ries, it is essential to thoroughly understand the entrepreneurs and investors, however, it is a large intricacies of the system. market that requires careful navigation to achieve success. It is important to view India not as a Starting a business in India involves navigating single market, but as a series of interconnected through systematic multi-layered requirements. regional markets where the regulatory and For example, there are requirements for a local investment environment can vary from one state director, legalization of foreign documents, and to another. With 28 states and eight union territo- prior government approval if the investment is coming from a restricted country. Foreign investors have several the beneficial owner of an globally for ease of doing options for entering the Indian investment into India is situated business according to the World market, including setting up a in or is a citizen of any Bank’s Doing Business 2022 representative office, branch neighboring country requires report. office, liaison office, private prior government approval. limited company, or limited Factors that worked in India’s liability company. The Indian government has favour are: implemented various initiatives As a result, any investment from to make it easier to do business The implementation of a new neighboring countries or where in India. The country ranks 63rd wage code that simplifies compliance 63 \\ Small Enterprise \\ Jun 2023

Government promotion of operations, and other Most investment sectors fall alternative investment funds commercial objectives. Foreign under the automatic route, investors can choose to set up a meaning that no prior approval The Start-up India initiative company, branch/liaison office, is required for investment. which supports or a limited liability partnership However, some sectors such as entrepreneurship and (LLP) in India. Companies are insurance, real estate, and innovation governed by the Companies Act non-banking financial of 2013, while LLPs are governed corporations are regulated. FDI Doing Business In India: by the Limited Liability into LLPs is also permitted under Foreign Investors Partnership Act of 2008. The certain conditions. The Indian Foreign investors, including Indian government has launched Government has announced its companies that are either several initiatives aimed at commitment to further liberalize planning to enter India or are improving the ease of doing India’s FDI policy in order to already operating there, must be business in India. attract more foreign capital. familiar with the country’s legal and regulatory environment. Foreign investment in India is The regulatory environment in This article provides an overview regulated by an annual foreign India is governed by the of the Indian laws and direct investment (FDI) policy Companies Act 2013, which regulations that are relevant to issued by the Department of replaced the previous foreign investors. Industrial Policy and Promotion. Companies Act 1956. This law This policy is supplemented by covers all aspects of a company, There are several entry options press notes issued throughout including formation, the powers available to foreign investors the year to announce policy and responsibilities of directors looking to do business in India. changes. The Reserve Bank of and managers, and the raising of The most suitable entry strategy India operationalizes this policy capital. will depend on factors such as framework through its rules, the nature of the business, the regulations, and circulars. Enforcing contracts in India can sector in question, the scale of 64 \\ Small Enterprise \\ Jun 2023

be challenging. According to the Understanding Indian culture is investment (FDI) into India. World Bank, it takes an average essential for businesses seeking Some sectors included under the of 1445 days to enforce a to build value and sustainable automatic route are agriculture contract, ranking India 163rd on growth in this emerging market. and animal husbandry, metal the ‘enforcing contracts’ and non-metal ore and coal and indicator of its ‘Doing Business’ India has a hierarchical work lignite mining, manufacturing, report. culture and small talk about and broadcasting carriage family is valued when building services. Property registration and land relationships. Important rules of administration in India are being behavior include using the right Investments that require prior simplified. The time required to hand in all situations and always government approval include register a new business has been having a business card to mining and mineral separation reduced to 68 days. Taxation in present. of titanium bearing minerals and India is complex and involves ores, retail trading of food different taxes levied by central Taxes are levied either directly products manufactured or and state governments. The on income or indirectly based on produced in India, central government levies direct consumption. publishing/printing of scientific taxes such as corporate income and technical tax and capital gains tax while Employment laws in India are magazines/specialty state governments levy taxes numerous and aim to guarantee journals/periodicals, and print such as professional tax and real fair working conditions, social media. estate taxes. security, minimum wage, and the right to form trade unions. Foreign investment is prohibited The Goods and Services Tax Act Employment contracts, HR in certain sectors such as real overhauled transaction taxes to policies, employee handbooks, estate businesses, chit funds, establish uniformity across the working hours and holidays, and gambling and betting including country. However, the tax procedures for expats must be casinos, lottery businesses, environment in India still works considered. trading in transferable on traditional professional development rights relating to advice recommendations to Economic Dynamics land, manufacturing of tobacco avoid confusion and errors. India’s macroeconomic products, construction of indicators support its viability as farmhouses, atomic energy, and Resident companies are taxed a destination for doing business. railway operations. on their worldwide income while Higher disposable incomes, an non-resident entities are taxed emerging middle class, and a In addition to FDI-related limits on income arising in or received low-cost but skilled workforce for acquiring shares, the in India. Different tax rates apply make it attractive for investment. maximum non-public to resident and non-resident The stable government also shareholding permitted in a companies. makes the Indian market more company listed on a recognized attractive for business. stock exchange in India is 75%. Accounting standards are Therefore, a listed company governed by the Institute of Government programs such as must have at least 25% of its Chartered Accountants of India Skill India, Make in India, and securities held by public and financial statements must be Digital India have influenced shareholders which could prepared annually with a fiscal investor choices. include domestic or foreign year-end of March 31st. institutional investors or retail Investments under the automatic shareholders. Work culture in India varies route do not require prior depending on factors such as government permission as long There are certain restrictions the type, size, location, and as they are within the sectoral under FEMA and India’s foreign industry of an organization. caps set out in the policy trade policy with respect to governing foreign direct 65 \\ Small Enterprise \\ Jun 2023

countries such as Pakistan and aims to prevent money such as export-oriented units, Bangladesh. For example, laundering and the use of electronics hardware technology investments from neighboring proceeds from crime. It requires parks, software technology countries or where the beneficial banks, financial institutions, and parks, biotechnology parks, and owner of an investment into other intermediaries to verify the special economic zones (SEZs) India is situated or is a citizen of identity of their clients and their which provide exemptions from any neighboring country require beneficial owners, maintain taxes, import and export duties, prior government approval. records of financial transactions and restrictions on investments. and ‘know your customer’ Incentives also vary depending Exchange control is regulated by information, and report any on whether they are granted at the Reserve Bank of India (RBI) suspicious transactions the central or state level. under FEMA. Capital account exceeding specified values. transactions are restricted unless The most common forms of specifically permitted while Grants and Incentives business vehicles used in India current account transactions are Grants and incentives available include private companies, generally permitted. The Indian to investors vary depending on public companies, joint ventures, currency is fully convertible for the sector and geographic area. limited liability partnerships trade and current account They are commonly in the form (LLPs), trusts, liaison offices, purposes. of tax concessions. To encourage branch offices, and project exports, India’s foreign trade offices. The Prevention of Money policy includes various schemes Laundering Act 2002 (PMLA) This can be the preferred option 67 \\ Small Enterprise \\ Jun 2023

in cases where the percentage of Prohibition and Redressal) Act stock exchanges in permissible shares that may be held by a 2013, the Minimum Wages Act foreign jurisdictions without foreign investor is subject to 1948, the Payment of Wages Act requiring compulsory listing in sectoral caps under the FDI 1936, the Payment of Bonus Act India and introducing a Vivad Se Policy. An LLP is a preferred 1965, the Payment of Gratuity Vishwas Scheme to resolve mode of incorporation for Act 1972, and the Child Labor pending tax litigation. private businesses due to its (Prohibition and Regulation) Act limited liability and ease of 1986. Other steps include granting operation. A liaison office can be exemptions to non-resident set up after securing prior Employment visas are granted taxpayers/foreign companies in consent from an authorized subject to certain conditions relation to filing a return of dealer. such as being a highly skilled or income in India where the total qualified professional engaged income consists of royalty or A branch office is similar to a by a company in India on a fees for technical services, liaison office and can represent contract of employment basis. increasing FDI in defense the parent foreign company as Foreign nationals intending to manufacturing under the its buying or selling agent. A stay in India for more than 180 automatic route from 49% to project office can be opened by days are required to register 74%, permitting 100% FDI in a foreign company provided it with the Foreign Regional contract manufacturing through has secured a contract to Registration Office (FRRO) the automatic route, and execute a project in India. within 14 days of arriving in the introducing an amended Web country. The Indian Government Form ‘SPICe+’ for the The main formation, registration, has launched a Permanent incorporation of companies. and reporting requirements for Residency Scheme under which these business vehicles vary a foreign investor can invest a India follows the common law depending on the type of entity minimum amount and obtain system and has a written chosen. residency for a period of ten Constitution that provides the years with multiple entries. framework for the separation of In 2019, the Ministry of Labor powers between the legislature, and Employment introduced Generally, employees do not executive, and judiciary. The four bills to consolidate and have a right to management Constitution has both federal regulate wages, industrial representation or to be and unitary features and relations, social security, and consulted in relation to provides for the distribution of occupational safety, health and corporate transactions such as legislative and executive powers working conditions. changes in control, between the center and state redundancies, or disposals. while also providing for a unified The main laws regulating judiciary. The legislative powers employment relationships Business Protection Laws are divided between the central include the Industrial Disputes Important steps taken to and state legislatures through Act 1947, the Trade Unions Act promote the ease of doing the Union List, State List, and 1926, the Employees’ Provident business in India include Concurrent List. The judiciary in Fund and Miscellaneous decriminalizing offenses under India follows a hierarchical Provisions Act 1952, the the Indian Companies Act that structure with the Supreme Employees’ State Insurance Act lack any element of fraud or do Court at the apex and a High 1948, the Factories Act 1948, not involve larger public interest Court in each state as the state-specific Shops and by replacing imprisonment with highest appellate court. Commercial Establishments Acts, civil penalties, introducing the Contract Labor (Regulation changes permitting certain -Nidhi Arora and Abolition) Act 1970, the classes of public companies to Sexual Harassment of Women at issue securities for listing on Workplace (Prevention, 68 \\ Small Enterprise \\ Jun 2023



COVER STORY: | EASE OF DOING BUSINESS TOP 10 INDIAN STATES FOR EASE OF DOING BUSINESS The Ease of doing business index compares Expanding a country's gross domestic product different nations and jurisdictions based on their (GDP) is crucial to the country's World Bank regulatory climate and how well it encourages ranking. The Ministry of Commerce and Industry business and protects property rights. High- of India announced on June 30, 2022, the top 10 er-ranked economies (from 1 to 20) have fewer states in India in terms of how easy it is to do demanding requirements for entrepreneurs. business. I.Andhra Pradesh execution of programs for sub-scorecard. Andhra Pradesh has always energy efficiency and been a leader in India's conservation. Here's why Permitting Reforms: The economic development. Andhra Pradesh tops state State Has Successfully Andhra Pradesh offers an rankings: Implemented 90% of the abundance of new business Reforms Listed in opportunities due to its six The administration identified Permitting Reforms, ports, six airports, more than 372 areas needing reform, Including the Regulation of 123, kilometers of roads, and the state has executed Employment and 2,600 kilometers of rails, and reforms in 368 of them. Conditions of Service Act, 24-hour electricity. In Andhra Pradesh received a 1996. addition, the World Bank has high score of 99.73 on the ranked it first in the evidence of reform and 86.50 Andhra Pradesh has on the feedback enacted various measures to increase transparency 69 \\ Small Enterprise \\ Jun 2023

and access to information Promotion of Industry and The Telangana State Special by giving the public more Internal Trade in the field of Food Processing Zone has government data. \"complying with already amassed about environmental regulations,\" 10,000 acres. Reforms related to where it has gotten the enforcing environmental highest, 100% positive IV.Haryana registration include response (DPIIT). Haryana is ranked fifth in enabling third-party Export Preparedness Index certifications in place of III.Telangana 2021 and is deemed an departmental inspections Telangana is among the \"Achiever\" by DPIIT in under all labour and states having the quickest Logistics Ease among environmental legislation sanction approvals. The state landlocked states (LEADS for medium-risk industries. also produces roughly 2022). In FY22, the value of one-third of India's Haryana's merchandise Measures to keep track of pharmaceutical production exports is $13.9 billion. In land dispute statistics and and one-fifth of its addition, Haryana has access provide an updated list of pharmaceutical exports. The to two international airports, pending lawsuits that fall state's road network five civil airports, 1,703 under this category of encompasses more than kilometres of the rail reforms. 27,600 kilometers of crucial network, 26,131 kilometres of domestic and international the road network, including II.Gujarat markets. Approximately 42% 34 national highways (NH), Gujarat has outperformed of the state's installed and a total installed capacity other states by providing 8% electricity capacity is derived of 12,307 megawatts (MW). of the country's Gross from renewable energy As a result, investors may Domestic Product (GDP) and sources. discover numerous lucrative 18% of its industrial business prospects in production. Over 35 million Telangana has made Haryana. Micro, Small, and enhancing EoDB, as well as Medium-Sized Enterprises the safety, affordability, and Haryana is a highly (MSME) in Gujarat generated quality of conducting industrialized and prosperous a cost-effective production business there, a top priority. state in India. It is and a whole ecosystem of Thus, roughly 24% of the well-established in the IT and international market State's investment total biotech sectors of the competitiveness. In addition, comes from returning knowledge economy. Other the state government has investors. The State industries include textiles, alleviated the difficulty of overcomes the power food processing, complying with around 2,900 shortage thanks to the automobiles, and auto rules in services, including foresight of Chief Minister K components. corporate and Chandrashekhar Rao. It can citizen-focused services. now provide electricity to A forward-thinking business homes, factories, and farms climate is a priority for the Gujarat has the around the clock. Haryana state government. second-highest EoDB Under the Industrial and feedback score of any state The Kaleshwaram Lift Investment Policy 2011, the or union territory, at 97.77 Irrigation Scheme has been government provides percent. The state of Gujarat finished, resulting in a green numerous financial and is one of only two in the revolution in Telangana. The policy incentives to country that fully implements State plans to cultivate palms businesses. Town and the 301 changes proposed by on a total of five lakh acres. Country Planning, Urban the Department for 70 \\ Small Enterprise \\ Jun 2023

Local Bodies, Labor, for various sectors. VII.Tamil Nadu Industries, Environment The city with the most Department, and Haryana VI.Punjab significant concentration of State Industrial and Punjab is connected to all manufacturers in India, with Infrastructure Development important markets with a around 37,220 units. Tamil Corporation Limited are only total road network of 72,212 Nadu has a diverse industrial a few of the agencies kilometers, a rail track sector and is a leader in involved in these attempts to network of 2,100 kilometers, numerous industries, modernize and go paperless and five airports. In addition, including automobiles, (HSIIDC). the state's exports and pharmaceuticals, textiles, imports are facilitated with leather goods, and chemicals. V.Karnataka five container freight stations The state's 1,076-kilometer Asia's epicenter of (CFSs), three multimodal coastline is the knowledge, research, and logistics parks, designated second-longest in India and innovation, home to 400 freight routes, and four features four major ports. Fortune 500 businesses Both inland container depots in terms of investments and (ICDs). Punjab has an M.K. Stalin, chief minister of a exports, Karnataka dominates installed capacity of more state with a GDP of $290 India's technological sector. than 13,960 megawatts. billion, hopes to one day see In the auto, electronics, food it reach a GDP of $1 trillion. processing, heavy machinery, Punjab is one of India's The state has assembled an and textiles industries, wealthiest states. The state economic advisory Karnataka is experiencing a has one of India's most committee of prominent proliferation of new business advanced infrastructure economists to help it achieve opportunities. With two systems, with many roads. this objective. In addition, the international airports, 14 Infrastructure-wise, it's been government is making national motorways, 115 called the best state in India. preparations to single out state highways, and a 3,250 Punjab made 306 of the 340 industries, assess their km rail network, Karnataka is changes that DIPP expansion prospects, and well connected to all major recommended for a 91.7% fortify them against rivals and markets. implementation rate. To economic shock. move up in the EODB Karnataka has gained rankings, the Government of The state has inked international recognition for Punjab made several memorandums of its forward-thinking reforms changes, including: understanding for 49 projects and business-friendly that might create 83,000 jobs policies. The State is making Defined as compliant with and bring in Rs 28,508 crore extensive efforts to simplify many regulatory investment. Moreover, the government procedures and authorizations. state is ready to establish its answer complaints and payments bank for the more suggestions. According to Title and building reforms effective administration of Nirani, the State achieved this finances in enacting welfare status thanks to the Changes to environmental programs. successful implementation of regulations many reforms, including VIII.Himachal Pradesh EoDB, affidavit-based Changes to how utility Himachal Pradesh, with its clearing (ABC), land reforms, licenses are granted. five perennial rivers, is the a central inspection system, leader in hydropower and single-window clearances Changes to labour laws generation in India, depend on third-party generating about one-fourth certification in the central inspection system. 71 \\ Small Enterprise \\ Jun 2023

of the country's total hydro network, a National Highway the state's 720 kilometers of generation. With an network of more than 5,000 coastline and 55 ports permit estimated hydroelectric kilometers, five commercial more than 20 percent of potential of 25,000 MW, airports with more than 100 India's freight trade. Himachal Pradesh can supply flights daily, and six inland 26% of India's hydropower container facilities (ICDs). The reforms implemented by potential. The state ranks the Maharashtra second in the Himalayan Madhya Pradesh's economy administration contributed states category of NITI and society have seen significantly to India's Aayog's Export Preparedness dramatic changes, and the dramatic improvement in the Index (EPI 2021) and is state's GDP has grown at a ease of doing business deemed an \"Achiever\" by phenomenal compound ranking. Maharashtra has DPIIT in Logistics Ease annual growth rate of 11.26 become the manufacturing (LEADS 2022). percent during the past center thanks to its decade (GSDP). In the favourable industrial strategy The State's varied landscape Aatmanirbhar Madhya and big talent pool. The state and elevations make it ideal Pradesh Roadmap, excellent has significant purchasing for growing a wide variety of governance is a top priority, power thanks to its enormous fruits, vegetables, flowers, as stated by Madhya customer base and its status and commercial crops, which Pradesh's Honorable Chief as India's second largest. bodes well for expanding Minister Shivraj Singh Maharashtra's advantageous related agro-based Chohan. Key steps which location, excellent enterprises and processing have helped the state rank in transportation infrastructure, agricultural products. Ease of Doing Business forward-thinking sectorial Rankings in the country regulations, and top-tier In addition, 34,835 include the development of incentive policies make it a manufacturing facilities an online GIS-enabled land top choice for the industry. (including small, medium, bank with land booking and large-scale operations) capability and a single represent an estimated $6.40 window system combining 12 billion in investment. Departments and 45 services. Himachal Pradesh was able to move up the EODB scale X.Maharashtra thanks mainly to the The second-highest FDI government's efforts in the ($15,4 billion) during the following areas: environment, fiscal year of 2021-22. The construction licenses, land, most FDI received by a state single window clearance, and between October 2019 and access to information. September 2021, at 26%. With five international and 13 IX.Madhya Pradesh domestic airports, over 3.01 In Export Preparedness Index million kilometers of road 2021, Madhya Pradesh placed network, and over 6,000 number seven. This is kilometers of the rail network because the state has an (10% of India's rail route), the outstanding infrastructure to state is well connected to all enable industrial expansion. major markets. In addition, The state has a robust rail 72\\ Small Enterprise \\ Jun 2023

COVER STORY | EASE OF DOING BUSINESS THE ROLE OF DIGITAL TRANSFORMATION AND INNOVATION IN ENHANCING THE EASE OF DOING BUSINESS IN INDIA India is emerging as a formidable force in the ers and businesses with the necessary hardware digital economy. With an impressive volume and and services to go online. What are the economic growth rate in key metrics such as internet connec- implications of this enhanced connectivity? And tions and app downloads, it surpasses most other how efficiently and effectively can India leverage nations. The government and private sector are digital technologies to promote the well-being of making concerted efforts to expand high-speed its entire population? connectivity nationwide and equip Indian consum- 73 \\ Small Enterprise \\ Jun 2023

Based on India’s outlook on , number of citizens. long-term positive changes such ‘reform, perform and transform” , as: the country has underscored the The cornerstone of this importance of innovation-driven infrastructure is the “India Stack”, Formalizing India’s digital development, facilitation of a set of open Application economy through cashless entrepreneurial ventures, Programming Interfaces (API), and paperless transactions. enhancement of infrastructural which is unlocking economic facilities, and digital revolution is building blocks like identity, Increasing financial inclusion bringing transformative changes digital payments and data, by bringing small businesses in every sector in the emerging thereby developing a system to and unbanked individuals into ‘New India’. enable the exchange of goods the formal economy, creating and services and to provide a financial records and credit Digital Transformation and the means for conducting histories, and enabling access Digital India Stack transactions. to credit. India has taken a unique approach to digitizing its Another component of the Providing an alternative retail economy compared to other Digital India Stack is the Unified payment system and reducing developed countries. With an Payments Interface (UPI), which reliance on existing open internet and no firewall has over 350 banks and 260 card-based payment systems. separating it from the rest of the million unique users on its world, India has utilized the network, making it India’s largest Creating an infrastructure for internet to develop a wide range and the world’s fifth-largest private companies to innovate of digital public goods and digital payment network by and develop new business government services. As a result, volume. models, such as fintech and India has been able to establish a e-commerce solutions. more democratic and inclusive The creation of the Unified digital network and infrastructure Payments Interface (UPI) has had Due to the creation of this stack, that connects with a large a profound impact on the along with the effects of the behavior of Indians, resulting in pandemic and the expanding e-commerce market, digital 74 \\ Small Enterprise \\ Jun 2023

payments have experienced a increased from 1.35 in 2014 to of the Goods and Services Tax significant increase in India, with 1.52 in 2019, indicating the (GST), have increased compliance UPI leading the way. and importance of investment in costs for MSMEs by requiring confirming its bright future in the driving growth. them to register and file returns country for GST. This has placed an In 2019, the digitally additional burden on MSMEs and The economic effects of dependent economy slowed their growth. digitalization are evident employed 62.4 million throughout the Indian economy. workers. Digital transformation through cloud computing for the ICT Between 2014 and 2019, the MSMEs and Digitization domain sector, machine learning, proportion of India's core MSMEs have experienced data mining, and the Internet of digital economy in its Gross significant growth due to their Things (IoT) could significantly Value Added (GVA) increased low-cost structures and various change the face of the MSME from 5.4% to 8.5%, with the benefits such as exemption from sector and enable them to digitally dependent economy the provident fund, gratuity fund, compete with larger players in estimated to represent and excise duty (for industries the industry. approximately 22% of the with a turnover of fewer than 1.5 country's Gross Domestic crores). These benefits have Digitalization could benefit Product (GDP) in 2019. allowed MSMEs to price their MSMEs in several ways: products competitively and In terms of US dollars, India’s maintain profit margins while Access to knowledge and digital economy expanded at a competing with larger international best practices rate of 15.6% between 2014 established companies. and 2019, which was 2.4 times Operational excellence quicker than the growth of the However, the Government of through real-time insights into Indian economy as a whole. India’s recent digitalization global demand efforts, including the introduction The digital output multiplier Improved financial knowledge for better decision-making, 75 \\ Small Enterprise \\ Jun 2023

risk mitigation, and chain management, increasing manufacturing sector. Following compliance global competition, uncertain digitalization, the manufacturing market conditions, lack of sector has emerged as one of the Better understanding of awareness of the benefits of high-growth areas in India. The market segmentation, digitalization, and a shortage of Government of India’s “Make in targeting, and positioning skilled manpower to effectively India” program was launched implement new technologies with the aim of making India a More efficient provisioning of global manufacturing hub. The products and services Impact of Digitalization on the government aims to achieve a manufacturing sector 25% share of GDP and create 100 However, MSMEs face several Digitalization has had a million jobs in this sector by challenges in embracing digital significant impact on the 2023. transformation, including the development of the Indian need for investment in economy, particularly in the 76 \\ Small Enterprise \\ Jun 2023 technology, inefficient supply

Manufacturing has played a key conditions, provide direct eight hours per day online. The role in driving development benefits for skills training and next wave of smartphone during industrial revolutions enhancement, and more. adoption is taking place in rural around the world. Globally, the Digitalization will significantly India. manufacturing industry has impact efficiency and drive increased productivity, but this significant changes. By 2030, India is expected to has yet to happen on a large have the second-largest number scale in India due to slow The Indian government has been of online shoppers, estimated at progress in automation and increasingly digitizing its between 500 and 600 million. digitization. If this gap is interactions with citizens, making addressed, the manufacturing obtaining licenses and certificates Online marketplaces have been industry has a bright future in easier, paying taxes, and growing rapidly across all sectors India due to its large workforce improving governance outcomes. of the economy. As a result of and potential for significant The government has also this behavioral change, these growth in employment compared digitized the procurement of metrics are expected to continue to other sectors. This could boost goods and services by to grow rapidly. The size of the domestic revenue and have a establishing a centrally managed e-commerce market is projected major impact on the Indian marketplace - the Government to reach US$350 billion by 2030. economy. eMarketplace (GeM) - which has an annual gross merchandise To Conclude Terms such as Industry 4.0, smart value of US$14.2 billion. According to projections, India manufacturing, and the Internet could become the third-largest of Things (IoT) represent the During the pandemic, social economy in the world by 2026, evolution of digital technology. aspects of digitalization were behind only the United States Indian companies should facilitated by India’s digital public and China. According to understand the implications of infrastructure - COWIN36 - a Bloomberg projections, India’s adopting these technologies in technology platform created by Gross Domestic Product (GDP) is their industries, including: the government to manage the expected to increase from $2.7 rollout of the world’s largest trillion in 2019 to $5 trillion in Reducing downtime and vaccination program. 2025 and $8.4 trillion by 2030, increasing productivity necessitating an annual growth Broadband usage has been rate of 8%. While this will not be Tracking resources, materials, increasing rapidly, driving growth an easy feat, India has the and people in marketplaces resources and capabilities to achieve this target. Using data generated by IoT Broadband usage in India has applications wisely to change been growing at an The coronavirus pandemic has the face of the industry unprecedented rate. Over the prompted many foreign through effective marketing past five years, the number of companies to move their and other means mobile broadband (MBB) operations out of China. India subscribers has grown from 345 must seize this opportunity and Addressing the main hurdle million to 765 million. During the take advantage of the situation. faced by many manufacturing same period, data traffic per user With the help of digitalization, industries: capital expenditure increased by 31%, reaching 17GB India is already making inroads (CapEx). Billions of dollars in as of December 2021. into the global economy. The CapEx are needed to drive Consequently, India's data traffic ultimate goal is to increase growth in manufacturing GDP. usage from 2017 to 2021 was financial literacy in India. among the highest globally, with The development of the a compound annual growth rate -Nidhi Arora manufacturing industry will (CAGR) of 53%. On average, create millions of job members of India's Gen Z spend opportunities, improve living 77 \\ Small Enterprise \\ Jun 2023

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FINANCE COLLATERAL-FREE SME LOANS No-collateral SME loans are a form of financing purchases, expansion projects, and equipment that does not require borrowers to provide upgrades. When compared to loans offered by collateral, such as property or assets. This type of traditional banks, these loans frequently have loan is typically extended to small and more adaptable payment periods and lower medium-sized enterprises (SMEs) that may need interest rates. In addition, the application process more collateral to secure traditional bank loans. for no-collateral SME loans is usually quicker and less stringent than for conventional bank loans. No-collateral SME loans can be used for various purposes, including working capital, inventory Benefits of No-Collateral SME they are accessible and easy to financial institutions. These loans Loans obtain, with minimal can be used for anything from No-collateral SME loans can be a documentation required. purchasing inventory to lifesaver for small business Traditional banks may require expanding operations or hiring owners who lack the assets to extensive paperwork and new employees, giving small provide as collateral. This type of collateral before granting a loan, business owners greater flexibility loan is designed to assist but the process is much simpler in growing their businesses. entrepreneurs in obtaining funds and straightforward with without requiring them to pledge no-collateral SME loans. Eligibility Criteria for any collateral, making it an Furthermore, no-collateral SME No-Collateral SME Loans excellent alternative for those loans can be more flexible than Eligibility criteria may vary starting or expanding their traditional bank loans. Borrowers depending on the lender. businesses. have greater control over how However, most lenders require they utilize the funding since they that businesses have been in One significant advantage of do not need to adhere to operation for at least one year no-collateral SME loans is that stringent requirements set by and have a steady revenue 79 \\ Small Enterprise \\ Jun 2023

stream. Additionally, they may financing loan. With this card sales until the total look into the credit score of the particular kind of loan, amount plus interest is repaid, business owner or owners to companies are able to borrow making it an ideal option for determine if they are reliable money against their companies with high-volume, borrowers. outstanding bills. The lender consistent credit card sales. will typically advance a Some lenders may also require percentage of the total value Peer-to-Peer lending that the business has a specific of the outstanding invoices Finally, peer-to-peer lending minimum annual revenue before and then collect payment platforms are becoming considering its loan application. directly from the customers increasingly popular as Lenders want to ensure they lend when due. This is an excellent sources for no-collateral SME to companies with consistent option for businesses with loans. These platforms allow growth and profitability. many unpaid invoices but small business owners to needs more cash flow. access low-interest loans Finally, some lenders may require without collateral collateral in certain situations, Merchant cash advance requirements by connecting such as when borrowing more (MCA) them with individual or significant amounts. Nonetheless, Another popular no-collateral institutional investors willing collateral requirements tend to SME loan option is the to lend money in exchange for be less stringent compared with merchant cash advance (MCA). interest payments over time. traditional loans. An MCA provides funds for businesses by allowing them How to Apply for a Types of No-Collateral SME to sell future credit card sales No-Collateral SME Loan Loans Available at a discount to receive When it comes to applying for a immediate cash. The lender no-collateral SME loan, there are Invoice financing loan takes a portion of daily credit several things you need to keep One type of no-collateral SME loan available is the invoice 80 \\ Small Enterprise \\ Jun 2023

in mind. The first step is loan. This document should not require collateral typically identifying the lender best suits detail all projections and come with interest rates that are your needs and requirements. financial statements. higher than secured loans. Many different types of lenders Therefore, business owners must are available, including banks, Financial statements - In calculate the total cost of online lenders, and credit unions. addition to a comprehensive borrowing before committing to business plan, lenders typically any loan. Once you have identified your require financial statements preferred lending institution, the showing your company's Repayment terms for next step is to gather all profitability and cash flow in no-collateral SME loans also have necessary documentation. This detail. These can include profit varying options depending on may include business plans, and loss statements, balance the lender. Some may require financial statements or tax sheets, cash flow statements, weekly or monthly repayments, returns, personal identification or tax returns demonstrating while others offer more flexible documents like passports or revenue streams and expenses payment schedules. Businesses driver's licenses, credit reports, over time. The more detailed must choose a repayment plan and other relevant papers. your records are, the higher that fits their cash flow needs to your chances of approval. avoid defaulting on payments After completing the paperwork that can negatively impact their process, you must begin Proof of identity - Another credit score. organizing your finances. You requirement is proof of must ensure that all outstanding identity and address Banks that offer this facility debts are paid before applying verification for personal and Several banks offer no-collateral for the SME loan, as some lenders official purposes. This could be SME loans, providing small and may require proof of income or in the form of an Aadhar medium-sized enterprises with assets. Card/Passport/Voter ID or the funding to grow their other government-issued IDs businesses. Following these steps carefully along with utility bills like and methodically when applying electricity bills/gas HDFC Bank - One of these banks for a no-collateral SME loan can bills/telephone bills etc. is HDFC Bank, which offers a increase your chances of securing range of unsecured business funding quickly and efficiently. A solid understanding of these loans ranging from INR 50,000 to requirements can help you INR 50 lakhs. These loans come Documents Required for a adequately prepare yourself with attractive interest rates and No-Collateral SME Loan before you apply for a flexible repayment options. Application no-collateral SME loan. ICICI Bank - Another bank that When applying for a no-collateral Interest Rates and Repayment provides no-collateral SME loans SME loan, the requirements may Terms for No-Collateral SME is ICICI Bank, offering various vary from one lender to another. Loans types of unsecured business However, there are some loans depending on the needs of standard documents that most For small and medium-sized the enterprise. This includes lenders require from small enterprises (SMEs), acquiring a working capital finance for business owners when they apply loan without collateral can be day-to-day operations and term for such loans. appealing. However, it's essential loans for expansion plans. The to consider the interest rates and bank also has a pre-approved Business plan - One of the repayment terms associated with loan facility for existing most important documents such loans. Due to the extra risk customers. required is the business plan, associated with providing the which outlines how the funds loan, small and medium-sized State Bank of India (SBI) is will be used and how the enterprise (SME) loans that do another institution that provides borrower intends to repay the 81 \\ Small Enterprise \\ Jun 2023

no-collateral SME loans in India. Several banking institutions in loans. These loans are designed SBI's CGTMSE (Credit Guarantee India offer no-collateral SME to be easily accessible for Fund Trust for Micro and Small loans with varying features and enterprises that don't have the Enterprises) scheme provides benefits catering to the different assets or credit history required collateral-free credit facilities up needs of entrepreneurs seeking by regular banks. The expansion funding without any security or of the digital economy and the to INR 2 crores to eligible collateral against their loan number of organizations that amount. specialize in fintech has made it borrowers. The bank also offers a easier to apply for these types of Conclusion loans. range of other lending schemes, In conclusion, no-collateral SME loans provide a much-needed -VISHAL such as the Stand-Up India boost to small businesses that Scheme, PMMY (Pradhan Mantri struggle to get traditional bank Mudra Yojana), and SME Smart Score Loan Scheme, catering to different types of businesses. 82 \\ Small Enterprise \\ Jun 2023

TECHNOLOGY HOW CAN YOU USE CHATGPT FOR YOUR SMALL BUSINESS In today's digital age, businesses constantly look state-of-the-art natural language processing for ways to improve customer support and (NLP) and machine learning technologies to streamline operations. Chatbots have emerged as deliver an adaptable and interactive user inter- a popular solution for businesses of all sizes, face. This article will explore how small business- offering 24/7 availability, personalized assis- es can use ChatGPT to enhance customer support, tance, and a cost-effective alternative to hiring sales and marketing efforts, and overall business additional staff. An example of such a chatbot operations. platform is ChatGPT, which employs INTRODUCTION TO CHATGPT chatbot can comprehend small businesses can automate What is ChatGPT? questions from users and reply their customer support services ChatGPT is an AI-powered appropriately. and offer quick and efficient chatbot platform that allows assistance to their customers. businesses to automate their Why is ChatGPT relevant for ChatGPT can help small customer support and small businesses? companies to reduce response engagement processes. It's a Small businesses often need more time, save money, and improve user-friendly platform that resources to offer excellent customer satisfaction. enables anyone to create and customer support services. They integrate an intelligent chatbot on need to hire more customer BENEFITS OF CHATGPT FOR their website and social media support agents and provide 24/7 SMALL BUSINESSES platforms. Using natural language availability. That's where ChatGPT processing (NLP) technology, the comes in handy. With this tool, 24/7 Availability ChatGPT's 24/7 accessibility is 83 \\ Small Enterprise \\ Jun 2023

one of the service's most Flexible Integration their needs and budget. appealing features for small Another advantage of using enterprises. The chatbot can ChatGPT is that it offers Creating Your Chatbot work around the clock, flexible integration with After choosing the plan, the answering customer queries various platforms such as next step is to create your and providing assistance even websites, social media chatbot. ChatGPT's when no human customer platforms, and messaging user-friendly platform makes support agents are available. apps. Small businesses can it easy for anyone to create a This ensures that customers easily integrate the chatbot on chatbot without technical receive a prompt response to their preferred platforms and knowledge. Businesses can their questions, improving engage with customers across create their chatbot by their satisfaction. different channels. ChatGPT selecting from the pre-built also provides analytics and templates or creating a Cost-Effective Solution reporting features that help custom flow. Small businesses usually have companies to track their a limited budget and can't chatbot's performance and Customizing the Chatbot afford to invest heavily in improve their customer customer support services. engagement strategies. Once the chatbot is created, ChatGPT is a cost-effective businesses can customize it solution for such companies, SETTING UP CHATGPT FOR to match their brand's voice, enabling them to automate YOUR BUSINESS tone, and personality. their customer support Customization involves adding services without incurring Choosing the Right Plan brand colours, logos, and significant expenses. The The first step to setting up messages to the chatbot to platform offers various pricing ChatGPT for your business is provide a personalized plans, making it easy for small to choose the right plan. experience to customers. businesses to choose a plan ChatGPT offers various pricing that suits their needs and plans that differ in features LEVERAGING CHATGPT FOR budget. and pricing. Small businesses CUSTOMER SUPPORT should choose a plan that suits Responding to Common Customer Queries ChatGPT can respond to customer queries like order status, returns, and refunds. The chatbot can provide quick and accurate responses to these queries, saving time for both the customer and the business. Providing Personalized Assistance Moreover, ChatGPT can be utilized to offer customized support to clients. The chatbot can ask relevant questions to understand the customer's query and provide a solution matching their needs. Reducing Response Time ChatGPT can help businesses 84 \\ Small Enterprise \\ Jun 2023

reduce their response time to through buying by answering for customers to connect with customer queries. The chatbot frequently asked questions, your business. can respond to questions providing product information, instantly, without delay, or scheduling a demo or BEST PRACTICES FOR USING ensuring that customers consultation. With ChatGPT's CHATGPT FOR YOUR SMALL receive prompt responses. This assistance, you can increase BUSINESS can help businesses improve the likelihood of converting customer satisfaction and leads into paying customers. While ChatGPT can be a valuable build a better brand asset for small businesses, there reputation. INTEGRATING CHATGPT WITH are best practices you should YOUR BUSINESS TOOLS follow to ensure success. Here USING CHATGPT FOR SALES Integrating ChatGPT with your are three best practices for using AND MARKETING existing business tools can save ChatGPT for your business: your business time and Small businesses can benefit streamline your processes. Here Setting Clear Expectations from using ChatGPT for their are three ways ChatGPT can Make it clear to customers sales and marketing efforts. Here integrate with your business that they interact with are three ways ChatGPT can help tools: ChatGPT instead of humans. your business: This will help avoid confusion Connecting with CRM and set expectations for the Generating Leads Systems interaction. ChatGPT can engage with You can automate lead website visitors and qualify capture and management by Training Your Chatbot leads by asking connecting ChatGPT with your To ensure ChatGPT provides pre-determined questions. By Customer Relationship valuable information and having ChatGPT answer Management (CRM) system. engages helpfully, you should common questions about your This will allow you to easily train and refine your chatbot business, you can capture segment leads, track over time. This will allow valuable information about interactions, and follow up ChatGPT to better answer potential customers, such as with potential customers. questions and help customers. their contact information and needs. Integrating with Marketing Monitoring Performance Automation Platforms Metrics Nurturing Prospects Integrating ChatGPT with your Monitor performance metrics After generating leads, Marketing Automation such as engagement, ChatGPT can help nurture Platform can help you conversion, and customer these prospects by providing automate the process of satisfaction. Understanding targeted content or sending targeted content or how ChatGPT is performing promotions. By engaging with promotions to leads. This will allows you to refine and options in a personalized allow you to move leads improve your chatbot over manner rather than sending through the buying process time. By setting up and generic emails or newsletters, more efficiently. customizing a chatbot, you can build a relationship companies can offer with potential customers and Using ChatGPT with Social personalized assistance to increase the likelihood of them Media Platforms their customers and prospects, purchasing from your By integrating ChatGPT with reduce response time, and business. your social media platforms, generate more leads. With you can engage with potential flexible integration options Converting Leads into customers on multiple and affordable pricing plans, Customers channels. This can increase ChatGPT is an excellent ChatGPT can also guide leads your reach and make it easier solution for businesses that 85 \\ Small Enterprise \\ Jun 2023

want to provide a better To implement ChatGPT regularly and make adjustments customer experience while effectively in your business, it's as needed. Analyzing data from improving their bottom line. essential to define clear goals customer interactions can and use cases for the chatbot. provide valuable insights into Conclusion Identify customers' most how the chatbot is being used In conclusion, integrating common inquiries and issues and where improvements can be ChatGPT into your small business when interacting with your made. ChatGPT may be a great can help you improve customer business, then create asset to any small business that experience and increase conversational flows that address plans ahead and optimizes it efficiency. By automating those needs. Training the chatbot regularly to help them save time repetitive tasks and providing on various scenarios is essential and money while providing 24/7 support, ChatGPT can help to ensure it can handle different better service to their customers. you save time and resources types of questions. while delivering personalized -VISHAL customer interactions. Finally, be sure to monitor the performance of ChatGPT 86 \\ Small Enterprise \\ Jun 2023

HOW TO – EXPORT / IMPORT HOW TO START AN EXPORT BUSINESS AND TOP IDEAS One of the popular companies to pursue in the importing or exporting, you should need a 21st century is starting an import-export compa- particular or minimal quantity of import-export ny. Doing business locally with the same goods capital. might result in receiving a little profit margin, while competing successfully on the international The import and export industries are flourishing, market has bigger profit objectives. But attempt- making the world more open than it previously ing to gain a presence in the global market also was. However, many of us are unsure if we can needs in-depth product understanding in the realize our specialized goals and objectives in the target market. Regardless of whether you're areas that we have identified as being of interest to us. What Exactly Are due to the various demands that instance, two countries, one rich Import-Export Industries? have arisen over time. in metal ore and the other in Import-export companies are Consequently, you could benefit fruits, started trading goods. among the oldest sorts of from founding an import and companies. Different export company. The basis of There are some considerations commodities have always been import and export trade is the you should make before starting needed for different countries interchange of goods. For the trade of goods if you have already decided to export goods 87 \\ Small Enterprise \\ Jun 2023

to other nations or import goods Getting product expertise is the are just starting to gain from other nations at a relatively greatest technique to popularity or have the potential lower price and sell them at a comprehend market demands to do so in the future make the higher margin. Who knows, and determine your ability to sell greatest items for an maybe these suggestions will a product in a certain market import/export firm. inspire your creativity to rise and without much problem. To your inhibitions will go by the generate strong profit margins, 4. Amount of money required to wayside. you should spend time locating register an import-export the ideal supplier of the material. business 1. Make a Decisive Commitment Get the best bargain possible by haggling with your customers. There are a few documents The first thing you want is the You'll develop these abilities by needed if you have a firm or resolve to launch a business and carefully examining what they business in your name in order set up shop in a foreign market. require from a certain product. to have your import-export Planning, forecasting, and license available in a few days or determining who your clients will 3. Select a product to import or weeks. The two most crucial be is crucial to succeed in any export steps to take before beginning business. Which customs and the import-export service are freight agency should you speak Finding a product or sector that getting an IE Code or with? Which state should you you are passionate about and import-export code and getting choose to export to? How can that you believe may be the RCMC (registration cum you establish an import/export successful in foreign markets is membership certificate) from the business in India? Or does your the next stage in beginning an export promotion council. You intended market enable you to import/export firm. merely need to pay a few sell the offered goods there or thousand rupees for these. access its market? These Finding the correct market for questions might help you focus your product is as important as Contacting the appropriate on a smaller market for an easier you've found it. After all, you goods forwarder and customs sale in the export industry. need a buyer for it, and your clearance agency after ability to recognize trends will be completing the registration 2. Knowledge Is the Key to useful in this situation. Items that process will facilitate the simple Joining the Global Market transfer of goods from one 88 \\ Small Enterprise \\ Jun 2023

nation to another. The first 6. Connecting with the Buyers 8. Investigate the Market Well expenditure required for these processes to establish an Maintaining positive It's not as simple as we may import-export firm in India relationships with overseas imagine exporting Simple ranges between Rs. 65,000 and suppliers and customers for approaches to join overseas Rs. 70,000. simple material and cash flow or markets include better product to obtain additional credit on a understanding and market 5. Utilizing the Internet certain product is crucial for demands. Many nations import success in the import-export goods from places where they By individually reaching out to a business. may find them in plenty because large number of people they have a high demand for worldwide, social media Today, there are several online certain things but lack the supply platforms like Instagram, business contact directories to meet the needs conveniently Facebook, Twitter, or WeChat are where you can quickly obtain of their populations. Try to a terrific approach to improve information on how to establish export the same to get simple product promotion. Use these an export business in India as entry into these countries after platforms to join the target well as other crucial facts about learning about the demands and market's websites as soon as suppliers, manufacturers, and expectations of the market. possible so that you may dealers on websites like connect with people who have Alibaba.com, IndiaMart.com, Let's take the import and export similar needs for products. By AliExpress.com, Amazon, and industry in India as an example. doing this, you can increase the others. These are a few of the Vegetables, cotton, fruits, possibility that your most well-known, safe, and organic machinery and import-export company will be reliable platforms for supplying chemicals, organic mushrooms, profitable with the least amount items to the global market. leather products, and other items of import-export capital feasible. are all major exports from India. 89 \\ Small Enterprise \\ Jun 2023

Investigate these things, and little amount of import-export Conclusion then start delivering them to capital. As your company The methods shown above are locations where they are needed expands, you may invest more but a few of the sector's most to obtain a good deal on a and more to export the goods, obvious business concepts. In certain item. which will increase your profit actuality, the market has many margins in India above those moving elements, and if one Can Anyone Run an from selling identical goods makes the effort to comprehend Import-Export Company with locally. these dynamics, many more Less or No Capital? chances will become apparent INDIA'S TOP-PERFORMING and beg to be taken advantage Now, the primary inquiries on IMPORT AND EXPORT of. In reality, this is true for every everyone's mind are is it possible SECTORS sector, and this is how to create an import firm in India? innovation happens. Is it feasible to launch a little or Import no-investment export business in -JAYA India? If so, how do you launch Oils and mineral fuels an export-import company in India? Valuable stones and metals As the international Electrical devices and market appears rich to everyone, machinery you don't always need to be a large manufacturer or dealer to Medicines spend your money there, but there is a great likelihood that Plastics you may run into hazards. Therefore, acting as a sourcing Organic substances agent or intermediary to help the manufacturer find overseas Export buyers and then receive payment from them is not a terrible idea. Gems and precious metals Second, begin with an Computers and machinery unsure stock. Let's make the market easier to understand by Organic substances supposing that we begin with $1,000. To be on the safe side, it Electrical devices and is therefore easy to start with a machinery Steel and iron Clothes and accessories made of cotton 90 \\ Small Enterprise \\ Jun 2023

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MARKETING EFFECTIVE MARKETING STRATEGIES TO HELP SMEs GROW \"Marketing is no longer about the stuff that you make, but about the stories you tell.\" - Seth Godin. The increase in companies across every industry Recognition. has created intense competition. With countless options available to customers, brands need to At the same time, SMEs need consistent sales to create a strong and unique presence to stay in grow. So, Marketing allows them to reach out to sight of their customers. For this reason, marketing their target customers, gather leads and make is essential for every brand. Moreover, Small and sales. Effective marketing strategies enable SMEs medium-scale enterprises (SMEs) need to focus to establish a unique position in the market that more on Marketing because they lack brand gets stiff competition from big corporations. If you are an SME owner or marketing strategies to help all are suitable for SMEs. So, we marketer looking for compelling SMEs Grow. have listed the suitable ones marketing strategies to help that are as follows: SMEs, you are at the right place. TOP 6 HELPFUL MARKETING In this guide, we will tell you STRATEGIES FOR SMEs Start withSocial Media about the top 6 effective Several marketing strategies are Social media is one of the most effective for businesses, but not affordable and effective 93 \\ Small Enterprise \\ Jun 2023

marketing channels for SMEs. A brand owner or marketing can A brand story can help You can start by making a free begin by deciding the target customers relate to your brand account and regular posts for audiences and making a and strengthen marketing your community and target strategy to reach them. It is activities. Along with your audiences. In addition, you can essential to make the followers brand's journey, you can tell the regularly interact with your feel involved to build brand audiences how to solve their followers and leads to make loyalty and turn them into problems. For example, you can sales. regular sales. It is an excellent share how and why you planned platform for getting customer to start your business and for As per Stats, there will be 4.89 feedback and solving their whom. Figures suggest that billion social media users in queries. when people love a brand story, 2023, which includes all kinds of 55$ are more likely to buy the audiences. You won't find any Tell a Story product in the future. other method to target such a The quote at the beginning of massive audience base. this article mentions, \"Marketing At the same time, use the story is about the stories you tell.\" If to attach your business with a An essential aspect of social you want your audience to cause. Stats suggest that 77% of media marketing is remember and understand you, customers are motivated to personalization and consistency. you must tell a story. By story, purchase from a company that Also, social media marketing we mean a brand story like your improves the world. brings a solid ROI. So, it is brand's journey. This helps SMEs unsurprising that many startups to create personalized Use Videos and SMEs in the country get a connections with their Do you know 92% of video significant share of their sales audiences. marketers say they've gotten a through social media. good ROI from video 94 \\ Small Enterprise \\ Jun 2023

marketing? can work wonders for your every search engine. brand. Once you know how to Videos are a mix of visual and grow your SEO, it can bring a Work on Influencer Marketing audio content that appeals to good ROI for your brand. It is a SMEs don't have a significant the audiences more than written time-consuming process and chunk of their budget for content. Also, it quickly takes requires expert help. But, when marketing activities like big your message to the audience, your website ranks at the top, corporations. So, they need to like explaining how your product then you can quickly drive more look for methods that are both benefits them. So, you should audiences to your website. affordable and effective. One include Videos in your such method is Influencer marketing strategies to benefit As per Hubspot, 60% of marketing. Creating a strong from them. marketers say that inbound brand presence and a solid base (SEO, blog content, etc.) is the of followers on your social For instance, brands use best source for the highest media sites can take time. Explainer and How-to Videos on quality leads for them. their websites to engage For quick results, you can invest audiences effectively. It helps to There are no shortcuts to in Influencer marketing. These explain to viewers how your growing SEO. If you want micro-influencers have a set of product will improve their lives. accurate and organic results, loyal followers that trust them. In addition, it will help them you must spend a few months So, when they promote your understand something valuable on it and consistently work on it. products, their followers will from it. The best way for SEO is to create learn about your product, and engaging and valuable content they can be tempted to Moreover, if your product has a for your audiences. It should be purchase it. For this reason, the particular method for use, you human-friendly, target your market share of can make Videos to make the audiences, and be unique. micro-influencers grew from customer understand it and give Although, every Search engine 89% in 2020 to 91% in 2021. instructions. has different algorithms. But, this method will be beneficial for However, it would help if you Harness the power of SEO chose the right Influencer for SEO might seem complex, but it your brand. For instance, if you make a beauty product, you must select beauty influencers that create and share content related to beauty. It will help to target your audiences better. Leverage Email Marketing If you think that emails are not popular in the age of social media, then you are wrong. As a small business owner, email marketing can help to grow your business and create brand loyalty. In addition, it is the best way to send personalized messages to your audiences. Consequently, 37% of brands are increasing their email budget. 95 \\ Small Enterprise \\ Jun 2023

When you take the email ID of objectives, you can finalize an your leads through social media effective marketing strategy and or your websites, it can bring work on it. you a way to send emails and notifications about your brand Although there are many offers and update your leads. marketing strategies for SMEs, Audiences are more likely to you don't need to invest and engage with personalized emails work on all of them at once. and compel them to act on it, Instead, you can see which one like making a sale or works the best for you and then participating in your event. stick to it for growth. The proper implementation of these Summing up marketing strategies can HOW STORYTELLING AFFECTS significantly grow your SME. YOUR BRAIN In this article, you learned about -SAKSHI six effective marketing strategies beneficial for SMEs. But, you must pick the right one that benefits your business. Also, you need to set your marketing goals, like whether you want to create a general awareness among the target audiences or generate sales. Based on these 96 \\ Small Enterprise \\ Jun 2023

HR HR BEST PRACTICES FOR SMEs The role of the human resources department is manage people, and work methodologies. crucial in every organization as they are responsible for the health engagement of As firms progress towards growth, an efficiently employees. Their purpose is to assist the company functioning HR department stands as a strong by selecting skillful professionals willing to add pillar for large and SMEs. Dealing with growth blocks to the company. Be it a large troubleshooting issues and offering guidance to company or a small or medium, they create resolve business problems, HR practices are opportunities for sustainable growth of the intended to help the company utilize its resources businesses. The need to apply a strategic approach for better outcomes. With cut-throat competition toward managing the company's resources makes nagging everyone, the sole savior is the need to HR practices mandatory. It outlines specified streamline business practices through the theories, objectives, characteristics, and productive approach of HR. In this matter, mechanisms of HRM systems. Besides this, HR developing principles and policies ensure extensive practices aim to express key performances, streamlining of processes in the company. Human Resources in SMEs these enterprises associated with tactical principles in the Strategic management is an much focus on functional management of SMEs adds to essential way to ensure management. For SMEs, competitiveness. Along with this, streamlined work modules. amassing functions include it decreases costs, enhances Nevertheless, the use of its methodical communication and decision-making, introduces ways principles is restricted in SMEs. written communication in times for employee motivation, curtails This is instigated by the extent of of need. Besides this, applying work delivery schedules, and 97 \\ Small Enterprise \\ Jun 2023

improves customer care. marketing supporters and expressed in relation to key leaders. Further to this, they can performers, and the context in Quality and equilibrium are the manage growth or stagnation which how HRM works. As firms most scrutinized characteristics, with restricted resources. Taking grow, there is a need to have HR regardless of the employees or note of the stated roles, HR in and HR functioning properly departments to deal with. SMEs tends to balance the placed. HRM department is seen Positive paraphernalia after growing needs of employees in as solely responsible for implementing tactical liaison with the organization’s executing all HR functions in the management principles saw a capability to provide them. HR employer's and employees' best stupendous increase. Even the managers in SMEs are intended interest on an equal basis. statistics have notified that there to deal with all aspects of has been a significant increase managing professionals working Human resource functions can be from 26 percent to 36 percent. in organizations. HR handles the demarcated as the way all tasks Among these have been following activities: strategic and errands regarding HR are decision-making that aided the human resource management, planned within organizations. productive growth with profits human capital management, and Right from the staffing procedure surging high. The SMEs have corporate social. to the training through the experienced a drastic change in performance schedule and performance where employees HRM practice has a root basis assessment of compensation to doubled their overall borrowed and based on the the termination, HR functions productivity. It is the positive science of organizational comprise all such roles and effect of the planned strategies behaviour and strategic responsibilities. The HR purpose that has made all the difference. management, human capital, and is not the only perimeter around theories of industrial relations. It managers or HR departments. The HR professionals in SMEs outlines HRM objectives, theories, This is in conjunction with the work in a setting where characteristics, components of line management and the cut-throat competition is HRM systems, the development employees. witnessed, accompanied by of HRM as a method for limited resources. Here, HR is to managing people, the views be a thought partner to the 98 \\ Small Enterprise \\ Jun 2023

Future Prospects of HR in SMEs can happen only if the budget vigilance over departments along Previously, the big firms looked does not allow for the best one. with employees’ needs, the forward to maintaining an HR Further, you can focus on success of such companies is Department. But now, SMEs have improving employee retention by assured. Besides this, the role of realized the significance of HR giving them a healthy work HR practices enhances a firm’s and its functional brilliance. The environment. Also, reducing the competence and efficiency in need for planned HR practices is hierarchy and developing a what should be done in favour of now appreciated by most SMEs culture where employees are the organization. today, which has enabled them to ready to accept challenges can contrive HR practices into their help in transforming SMEs As HR is directed to plan every administrations. It is the shortage working methods. Not to forget company moves and select the of funds that refrains them from about opting for flexible working best professionals to add growth adding such essentialities to the hours. blocks, SMEs have realized the functioning of the smooth need for HR and streamline their business. The only problem they Even research has shown that the working modules. The purpose of face is the shortage of funds and tactical use of HR practices is one HR is to ensure that every expertise required to implement of the most vital elements of process is directed toward the HRM. To resolve such matters, structural performance. The company’s overall growth. So, the outsourcing HR functions or success of SMEs mainly depends best part of including an HR redirecting available resources to on the fervour, aptitude, department in an SME is to implement HR practices in SMEs resources, and commitment to visualize its expansion and can be good options. the work. These factors are the methodical management of the ones that make the entire tasks. Moreover, having the right In case, outsourcing is not workforce work effectively. If the professionals in the company will feasible, SMEs can recognize SME owner takes part in a create ways to develop a suitable candidatures for various complete understanding of the progressive work environment departments in the office. This functional process and keeps and lead to growth. 99 \\ Small Enterprise \\ Jun 2023 - GUNDEEP

COVER STORY: | EASE OF DOING BUSIFNEOSSFCOURSGOENT TODAY & ABOUT YOUR FUTURE I can do nothing about my past. I can do nothing about my future. What I can however do is take care of my today. How?........ by not thinking about my past or future, but focusing 100 % on my today, doing the right things that I am expected to do & not doing what I am not expected to do. So, I say, focus on today & forget about your past & future. What is the future? Future is nothing but an accumulation of all your today's. Today, for the next 24 hrs., make it large. The next 24 hrs. are what matters. Just do the right things today & when tomorrow comes, that's your today, do the right things & in then the next 24hrs & keep doing it day in & day out & you will have nothing to worry about in your future. Today, plus when tomorrow comes, it becomes your today, plus when the day after comes, it becomes your today again. Therefore Today + Today + Today + Today.... = A Great Future Every day be conscious of what you are doing. Is it the right thing you were expected to do, is that what you as an Entrepreneur, Leader or Manager are supposed to do...Are you unconscious of the fact that you are wasting your time, doing something that others could have done for you ...Are you conscious...I know of so many people in this world, who were just not aware of their today. Time just whizz passed them & today at an advanced age they regret they didn't do what they were expected to do...They have only regrets about life...They regret that they are 30 or 40 or 50 today but didn't do what they were supposed to do 10 years ago..ie at 20 or 30 or 40 respectively.. If you don't want to fall into the past or future trap, just \"Focus On Today & Forget About The Future\".  Santosh Nair 80 \\ Small Enterprise \\ Jun 2023 Continuously Creating Fearless Confident People In An Ever Changing World 28 \\ Small Enterprise \\ Jun 2023