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by Rajen Kumar

No Escaping Social Media

Running a magazine concentrating on issues of small and medium enterprises and managing with limited resources is a like living life on the edge. In this rush of meeting deadlines,...

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Apr 2012

EMRC, Brussels Associates with SME WORLD as its New Media Partner

EMRC has promoted business partnerships with the developing world and has organised dozens of business forums in key decision-making cities, such as Amsterdam, Rome,...

Marketing

Time to Develop Marketing Clusters for SMEs

Manish Bang
Nov 2009

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Expanza Access Limited is India's only consultancy firm offering holistic solutions to the SMEs across various verticals. It helps SMEs to overcome the growth limitations by offering new business structure, human resource related issues, fresh capital and more resources. The company acts as a one-stop arena for all kinds of requirement of an SME.

Expanza has created a pan-India Business Resource Network for Indian SMEs. The company has a strong network of around 170 network associates across 17 cities. These associates are experts/professionals in their respective fields and are working closely with SMEs across India. Expanza leverages on this resource and generates a platform to reach out to the SMEs.

The company helps Indian SMEs to reach next level in the businesses through its holistic consultation in New Age Leadership Skills, Modern Business Structure and Systems, Larger Capital Base, Access to Debt Funds, Awareness of Global Trade & Trends, and Opportunities for Joint Ventures, Mergers & Acquisitions, etc

SME WORLD talked to the company Director Manish Bang who is a graduate in Chemical Engineering from Mumbai University, and has done his MBA in Finance from University of Technology, Sydney. He has explored his skills in organizations like SSKI Investor Services Ltd. and Nimbark Fashions Ltd. in India.

Returning to India in 1999, after obtaining the master's degree, has paid him with the fruits of all round exposure in SSKI Investor Services Ltd., a leading Institutional and retail stock broking firm based in Mumbai. In the past five years, he has sharpened his entrepreneurship skills in working with Nimbark Fashions Limited, a closely held Textile company.

1. What are the principal constraints faced by Indian SMEs in terms of demand and supply?

Large numbers of SMEs in India are ancillary units to large corporate. So these SMEs grow and expand based on the expansion of large corporate. In these cases, the demand and supply is managed between the two. But in case of specialty products, where SME have a niche market they always have higher demand than supply. The increase in supply always grows very slow as these SME face constraints with respect to resources, where money is the biggest constraint

2. SMEs are the driving force of economies everywhere. In India, SMEs sector has a great potential which is yet to be tapped. The unorganized SMEs sector is much bigger than the organized one. What should be the strategy we should adopt to encourage the unorganized (unaccountable) sector to come under a security umbrella?

In India, we have a very large SME sector. There are 13 million SMEs in India that control 95% of Industrial units. The main constraint for SME is availability of funds when they are growing. Debt funding requires collateral which SMEs don't have in sufficient amount. Equity funding is only available from family members and friends which are also limited in amount.

Beside this our tax structure is such that if one company is doing evasion of tax and other is paying all taxes then the other person product price goes very high and it becomes unviable for the buyers. These trade practices does not allow organized sector to grow. A new initiative of GST will definitely help in developing organized sector in all the industries. Banks need to be liberal in providing funds to the SMEs when they are growing, as well as the government needs to come out with some equity funding programs for Indian SMEs.

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1 Comments >>

Anisha

02 Dec 2011 (22:10:16)

Thanks alot - your answer solved all my pbrlomes after several days struggling

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