Small and medium IT firms disappointed with budget
Small
and medium IT enterprises Friday were disappointed with the
2008-09 budget, saying it has not extended the Software Technology
Parks of India (STPI) scheme that offers them various exemptions
and had also increased the excise duty on packaged software.
"It does not have anything for the IT industry. It is disappointing
for the small and medium enterprises, which had some expectation
from Finance Minister P. Chidambaram," said Shakti Sagar,
convenor, IT panel at Confederation of Indian Industry (CII),
Andhra Pradesh. The small and medium enterprises (SMEs) were
expecting that the STPI scheme, which has been offering them
various exemptions, including 10-year income tax exemption
for exports, would be extended beyond 2009, he said.
More…
RBI asks banks to widen SME focus
The Reserve
Bank of India (RBI) has directed public sector banks to set
up specialised branches for small and medium enterprises (SMEs)
to cater to the fast-growing SME sector. This is in addition
to the directive to redesignate the specialised Small Scale
Industries branches as SME branches. The RBI has issued the
two directives recognising the need for SMEs to secure easy
access to credit and specialised service and transaction costs.
"Banks have
been advised to adopt cluster-based approach to SME financing
and displaying instructions ô guidelines formulated by banks
as well as by RBI on their websites. Banks have also been
advised to identify and select clusters of SME units which
share a homogeneity and critical mass. A cluster-based approach
also offers possibilities of reducing transaction costs and
mitigation of risks for SMEs," said Devaki Muthukrishnan,
Regional Director, RBI. .
More…
We do not see any limits to our SME role: SIDBI
Having spent
a large part of his career with developmental financial institutions
like IDBI and IFCI, RM Malla has recently taken charge of
Small Industries Development Bank of India (SIDBI) as CMD.
Mr Malla speaks about his future plans for the institution.
Given that
private banks and foreign banks are aggressive on building
the micro, small and medium enterprise (MSME) portfolio, how
does SIDBI plan to position itself to meet competition?
One of the
major roles of SIDBI is to motivate banks and others to lend
more to SMEs by providing them refinance which contributes
above 50% of our total sanctions. We have also taken strategic
steps to build the MSME portfolio to showcase that lending
to this sector can be done profitably. For speedy delivery
of credit with relatively smaller loans, we have leveraged
technology and system for faster appraisal methodology by
implementing credit appraisal and rating tool developed in-house
for loans up to Rs 50 lakh. More…
Small & medium units
on a roll
Dun and Bradstreet, a provider of global business information,
knowledge and insight recently launched the second publication
in its series on SME (small and medium enterprise) clusters
in the city recently. Titled “Emerging SMEs: Pune 2008'”
it covers three sectors -- engineering, food processing and
IT and ITeS-BPO.
‘SSpeaking at the launch, Kaushal Sampat, chief operating
officer, Dun and Bradstreet India said that driven by knowledge,
skills, low cost, improved quality and demand, the three sectors
covered in Emerging SMEs: Pune 2008 have witnessed tremendous
growth over the last two years. For the Pune cluster, the
sampled engineering SMEs expect an average revenue growth
of 52 per cent in the next two years, while those from the
IT and ITES-BPO segment anticipated an average revenue growth
of 52 percent in the next two years.
The publication was released by Mukesh Malhotra, managing
director, Weikfield Products Company (India) Pvt Ltd. A panel
discussion which included participants like Shubra Gupta,
editor, Moneywisebewise, Niranjan Pandit , program manager,
IBM, Rajnish Kumar, deputy general manager, SBI, Gireenda
Kasmalkar, founder-director and CEO, Verisoft InfoSystems
Pvt Ltd, and Sajan John Thariyan, director, Sathyam Fasteners
Pvt Ltd was also organised on the occasion. The discussion
was moderated by Devna Vora of NDTV Profit.
Source:expressindia.com
More…
Indian SMEs lead IT
spend growth among BRIC nations
It spend by Indian small and medium enterprises (SME) is expected
to continue with a robust growth of 24 %, the highest among
BRIC countries, with Russia, China and Brazil following at
22.9 %, 20.4 % and 19.4 % respectively, says a Microsoft-AMI
Partners report on IT adoption in Indian SMEs.
The report
says that the main drivers for increasing IT adoption are
business growth, the need for efficiency to meet challenges
of globalisation, customer push and compliance. It states
that about 125 businesses cited the need to manage rapid growth,
39% saw a need for regular interaction with large Indian or
international customers and 30% of respondents confirmed that
standards' compliance as a reason for adoption of IT and 41%
stated that IT helped them improve efficiency. More…
Cut interest rates and excise for SMEs: ASSOCHAM
The Chamber
has also sought excise reduction in excise levy for SME's
as most of their products fall under high excise slabs, ranging
from 16% to 24% to a level of less than 12%.
The Associated
Chambers of Commerce and Industry of India (ASSOCHAM) has
urged the Finance Minister to relax interest rates not only
for Indian Inc. but more especially so for SME's in particular
as stronger rupee has already shrunk their margins and it
is becoming more difficult for them to ensure their sustained
survival.
The Chamber
has also sought excise reduction in excise levy for SME's
as most of their products fall under high excise slabs, ranging
from 16% to 24% to a level of less than 12%.
In its Pre-budget
note submitted to the finance ministry, the ASSOCHAM President,
Venugopal N. Dhoot said that majority of SME's payments are
delayed because faulty deferred payment clause which exceed
even beyond six months.
On top of it,
the SME's face sever liquidity crunch as banks and financial
institutions insist on collateral and bank guarantee from
them as result of which the interests cost to most SME's go
beyond 15% -16%. In nutshell, the effective cost of interest
to small and medium entrepreneur works out to be around 18%,
said Dhoot. More…
Special exchange for SMEs
The biggest
challenge faced by SMEs is access to capital. Small and medium
enterprises have grown to become the silent drivers of economic
development in the country.
In India SMEs
form an estimated 95% of industrial units and employ 70% of
the nation's workforce. With low-cost production and a high
rate of employment, SMEs form the backbone of the Indian economy.
It is estimated that SMEs account for 40% of value addition
in the manufacturing sector and 50% in manufacturing exports.
But with the
opening up of the economy in 1991, SMEs have faced competition.
The government has offered helping hand by passing the Small
and Medium Enterprises Development Act of 2006 as well as
removing the surcharge on income tax on all firms and companies
with the taxable income of Rs 1 crore or less. More…
UN agency to map SME clusters for export push
An extensive exercise to map the large number of small & medium enterprise (SME) clusters in the country is likely to begin soon. The department of industrial policy & promotion (DIPP) has approached Unido - the UN agency for promoting economic development in developing countries - to map SME clusters in the country with the primary objective of better realisation of their export potential.
Unido might turn the exercise into a more exhaustive one by roping in statistical organisations NSSO and CSO, and gathering data for other interested parties like the Small Industries Development Bank of India (Sidbi).
More…
FC and
Cairn India Open Enterprise Center for Local Small Businesses
Development in Rajasthan
A central component of the IFC-Cairn development programme is the establishment of an Enterprise Centre which will help to provide information and expertise on business practices to local small and medium-sized firms in Barmer, supporting them to become potential suppliers and service providers to the oil and gas operation and other ventures in the region.
IFC, a member of the World Bank Group, has reinforced its partnership with Cairn India with the opening of an enterprise centre to support community and local small businesses development initiatives in and around the Barmer area of Rajasthan, India, where Cairn has made significant oil and gas discoveries.
More…
BIMTECH
hosts summit on SMEs
The Small and Medium Enterprises (SME) sector is called the
backbone of the Indian economy.
To bridge the
knowledge gap between Indian SMEs and the government policies,
Birla Institute of Management Technology (BIMTECH), Greater
Noida organized SMEs Summit 2008 on the theme 'Indian SMEs
In Exports' on February 2 in Delhi. The Summit was inaugurated
by Ashwani Kumar, Minister of State for Industry, Govt. of
India.
The summit
highlighted the Indian SME sector about the policies, which
have been formed by the government and how the SMEs can use
them for their benefit. It also brought out key aspects on
how to increase the capability of Indian SMEs and to provide
right information to move ahead in the global arena. Inaugurating
the Summit, Chief Guest, Sh. Ashwani Kumar, Minister of State
for Industry said, "When the Indian economy is currently growing
at 9% and the future growth expected more or less on the same
line, the Micro, Small and Medium Enterprises (SME) will give
all thrust of development to make India the 3rd largest economic
power by 2025 overtaking Germany." More…
INTERNATIONAL
State
Bank may force banks to finance SMEs
Dr Shamshad
Akhtar, Governor State Bank of Pakistan has said that the
central bank might impose some kind of allocation requirements
if banks do not venture into Small & Medium Enterprise (SME)
lending.
Addressing
the first meeting of the SME Credit Advisory Committee (SMECAC)
held at State Bank in Karachi on Thursday, she said the State
Bank is determined to ensure that ample credit is available
to the SMEs. She urged the commercial banks to promote SME
financing more aggressively.
She observed
that it is in the interest of banks to diversify their credit
portfolios with focus on SME financing. For this purpose,
banks need to launch innovative products to meet the needs
of this important sector of the economy, she added. More…
EXPANDING ACCESS TO FINANCE IS KEY TO GROWTH FOR SMALLER BUSINESSES, SAYS IFC'S THUNELL
Lars Thunell,
Executive Vice President and CEO of IFC, a member of the World
Bank Group, today underpinned the importance of expanding
access to finance to smaller businesses. Addressing the banking
community in Saudi Arabia during an SME finance conference,
he said, "Small and medium enterprises are major contributors
to employment, yet their financial needs are underserved,
which is hindering their growth."
Organized by
the Institute of Banking and hosted by H.E. Hamad Al-Sayari,
Governor of the Saudi Arabian Monetary Agency, the conference
discussed ways to encourage SME banking in Saudi Arabia and
the region as a whole.
"Banks generate
higher profits from their SME lending than from their other
portfolios, but many banks remain wary of this sector due
to its perceived risk. IFC is helping banks approach SME lending
in ways that enable them to manage potential risk," Thunell
said. IFC primarily finances small businesses indirectly,
through financial intermediaries
SME service providers now available
Business Development
Services (BDS) that are designed to help Small and Medium
Enterprises (SMEs) enhance their operations and competitiveness
are now available in Capiz.
At least three
private sector service providers have come forward to offer
these services to local SMEs who need technical and consultancy
assistance to address their varied concerns including operations
product development, packaging, technology, marketing, financing,
organization and management, safety and standards, and, environmental
impact assessment.
The service
providers are Capiz SME Center chaired by Lily Ong, Earth
Care Consultancy managed by Maricel Jarencio, and RDO Consultancy
managed by Reynaldo Orola. They formalized their intention
to offer SME support services during the signing of a Memorandum
of Agreement (MOA) and launching of BDS held last week at
the Provincial Capitol here. More…
HP launches storage system for SMEs
HP has launched
its StorageWorks 4400 Enterprise Virtual Array, aimed at bringing
enterprise-class storage to medium-sized companies with small
budgets.
With many of
the features normally associated with high-end systems such
as dual-redundant hardware architecture and support for remote
replication software, the EVA 4400 boasts 99.999 percent uptime
for up to 96TB of data, says HP.
A starter system
with 1TB capacity will cost about €15,000 (£11,300), said
HP. More…
German grant boosts small, medium enterprises
The German
Technical Cooperation (GTZ) has expanded its technical assistance
grant in Western Visayas on business development services
(BDS), giving small and medium enterprises (SMEs) the chance
to become competitive in the international market.
The BDS program
shall provide SMEs with basic skills training in business
planning, cooperative development, culinary arts and food
service, food safety, processed food product development and
solid waste management, among others.
It will assist
sectors involved in agriculture, aquaculture, food processing,
loom weaving, GTH (gifts, toys and house wares), and tourism
to increase business performance and market competitiveness.
The SME propaganda
The new buzzword
in the banking industry, donor agencies, and even the government
has been SME. Almost every bank in Bangladesh has an SME cell
and new products and initiatives aimed at SMEs are a common
feature in the business page of the newspapers. It would seem
that financing these SMEs is guaranteed to pave the way for
economic development in Bangladesh. What is SME and why suddenly
it has become the focus?
SME is an abbreviation
for Small and Medium Enterprises. It is also called small
and medium-sized enterprises and small and medium-sized businesses
or small and medium businesses. SMEs are businesses or companies
whose headcount or turnover falls below certain limits. The
abbreviation SME occurs commonly in the European Union, and
in international organizations, such as the World Bank (WB),
the Untied Nations (UN) and the World Trade Organization (WTO).
In recent years, the term small and medium enterprises or
SMEs has become more standard in few countries including Bangladesh.
Most developed
countries traditionally had their own definition of what constitutes
an SME. For example, the definition in Germany had a limit
of 500 employees, while in Belgium it could have been 100.
But now, since the formation of the European Union (EU), the
current definition categorizes companies with fewer than 50
employees as "small", and those with fewer than 250 as "medium"
across EU states. By contrast, in the United States, small
businesses are those with less than 100 employees, while medium-sized
business often refers to those with less than 500 employees.
However, the most widely used definition of micro-business
or small business by the number of employees is less than
10. More…
ARTICLES
Poverty focussed development and microfinance
Sri Lanka,
by the 1980s, possessed substantial achievements in human
development in areas such as universal primary school enrollment,
a high literacy rate, gender equality, lowered infant and
maternal mortality, a high life expectancy etc. largely due
to the welfare-oriented development strategies followed since
independence in 1948. According to the World Human Development
Index, Sri Lanka ranked 99th out of 191 countries. Some of
those achievements are in par with those of the middle income
countries.
In those development
aspects, Sri Lanka has already met some of the Millennium
Development Goals towards the turn of the twentieth century.
But poverty remains a persistent worry. Out of the urban population,
about 8 percent still remains poor. More than 23 per cent
of the rural population is living in poverty. Poverty of the
estate population is a staggering 30 percent. On the whole,
out of the island's population of nearly 20 million, a fourth
or less is still living in poverty.
More…
The Role of Government in SME Development in Transition Economies
DAVID SMALLBONE
IS PROFESSOR OF SMALL and Medium Enterprises and Head of the
Centre for Enterprise and Economic Development Research at
Middlesex University Business School. Friederike Welter is
Senior Researcher, 'Crafts and SMEs' Research Group, Rhine-
Westphalian Institute for Economic Research (RWI), Essen,
Germany. The paper is concerned with the role of government
in relation to SME development in economies at different stages
of market reform. It demonstrates that, as in mature market
economies, the state is a major factor influencing the nature
and pace of SME development, although more through its influence
on the external environment in which business activity can
develop than through direct support measures or interventions.
. Survey evidence from the Ukraine, Belarus and Moldova suggests
that many enterprises are set up, survive and sometimes even
grow despite government, because of the creativity of individuals
in mobilising resources and their flexibility in adapting
to hostile external environments. The problem is that in these
situations the number of firms remains small and their contribution
to economic development rather limited. In such a context,
government still has to create the framework conditions for
private sector development to become embedded and sustaining.
At the same time, in countries where market reforms are at
a more advanced stage (such as Poland), current priorities
for government with respect to the environment for SME development
include bringing legislation and regulations in line with
EU standards in preparation for EU accession, encouraging
the banking system to adapt and recognise the SME sector as
a potential market for a range of financial products, facilitating
the development of venture capital funds for that minority
of SMEs that seek external equity, and working in partnership
with the private sector to establish an effective support
infrastructure. Although there may be a case for selective
interventions in both types of circumstances, direct support
measures are not the main role for government in either case.
More…
Creating an entrepreneurial culture in support of SMEs
Abstract:
This article focuses upon the importance of creating the 'cultural'
climate for support of small enterprise development. It might
well be a waste of time and resource to concentrate SME development
efforts on entrepreneurs and their immediate 'support' agencies
unless equal consideration is given to investing in the development
of an 'enterprise culture' in the broader SME stakeholder
environment. It is this environment that shapes the 'level
(or skewed) playing field' for small enterprise development.
In recognition of the fact that the words 'entrepreneurship'
and 'enterprise culture' are frequently confused in the rhetoric
that surrounds development, they are first defined. The enterprise
culture derives from the 'life world' of the entrepreneur.
Sensitivity to this world and its underpinning values lies
at the root of creating conditions for 'effective'(as opposed
to socially deviant) entrepreneurial behaviour. Entrepreneurial
values and beliefs contrast sharply with those of government
and corporate bureaucracy. Therein lies the root of the problem.
Key SME stakeholders, and in particular donors, are likely
to embrace bureaucratic cultures. Yet they are dominant 'supply
side' customers for local development agencies, and as such
they are capable of exercising a pervasive bureaucratic influence
on the behaviours and values of such agencies, threatening
their culture and more important their potential for long-term
sustainability. The threat to the enterprise culture may paradoxically
come from those who seek to support it. There is therefore
an imperative to develop strategies for creating an enterprise
culture among key stakeholders. This can only be achieved
by a process of strategic partnership learning. How this might
be achieved is discussed. More...
Author: Gibb A.
Source: Small Enterprise Development, Volume 10, Number 4,
1 December 1999 , pp. 27-38(12)
Publisher: Practical Action Publishing
E-commerce development in developing countries: Profiling change-agents for SMEs
Abstract:
Using case study evidence collected from Uganda in 2004 and
the theoretical lens of change-agent theory, a framework is
presented that explains how intermediaries can fulfil an effective
role in assisting SMEs to benefit from e-commerce. Findings
point towards the influence of multiple change-agents performing
distinct roles. Primary change-agents have been identified
as playing a lead role in catalysing and intermediating e-commerce,
through facilitating market access due to favourable commodity
chain positioning, and through solution provision that is
tailored to specific SME needs. Secondary change-agents, on
the other hand, provide complementary inputs such as technology,
training and financial resources. It follows that competency
to intervene is defined according to the differing roles that
change-agents perform, and that intervention strategies for
capacity building should be based upon the requirements of
different categories of change-agent. This paper makes a contribution
to the theory of e-commerce adoption, as well as providing
an assessment framework to assist practitioners in formulating
intervention strategies and helping agencies in developing
countries. More...
Authors: Duncombe, Richard; Molla, Alemayehu
Source: The International Journal of Entrepreneurship and
Innovation, Volume 7, Number 3, August 2006 , pp. 185-196(12)
Publisher: IP Publishing Ltd
EVENTS
Aahar-08 March, 2008 (Saturday) Pragati Maidan , New Delhi
 |
| Start Date: |
08 March, 2008 (Saturday) |
| End Date: |
12 March, 2008 (Wednesday) |
| Where: |
Pragati Maidan
New Delhi , New Delhi |
| Phone: |
+(91)-(11)-23371390/23371822/23371540 |
| Permanent link: |
http://www.eventsinindia.com/events/9378 |
|
The Aahar fair seeks to offer
a platform for facilitating growth and modernization in the
processed food and hospitality sector. Its aim is there fore
clearly consonance with Government's efforts and objectives
to promote these vital areas of the national economy. More...
Delhi
International Leather Fair
| Location: |
New Delhi |
| Start Date: |
05/18/07 |
| End Date: |
05/20/07 |
Description:
The fair focuses on a wide range of finished leather, shoes,
shoe components like uppers, soles, heels, counters, lasts
& synthetic lasts, Leather garments, fashion accessories,
Leather Goods like travelware, belts, gloves, portfolios,
handbags and wallets, saddlery and harness, Machinery and
Equipments, chemicals, Publications and Consultancy Services.
More...
Perspective
Of Modern Weaving Technology
Description:
The TAI now brings to you a seminar specially dedicated to
Weaving, covering the subject of new innovation in weaving
manufacturing machines, weaving preparations and related manufacturing
activities. i.e. Industrial fabrics, Geo textiles and designer
fabrics. In this seminar we are going to cover the following
topics: Textile Market with various value added product mix
and weaving technology, Innovations in weaving machines, Requirement
of yarn parameters and specifications, Problems & prospects
in weaving, Satisfying Government of India infrastructure
to modern textile sector, Process and quality control industry,
Opportunities of the Indian weaving industries in Global market.
This weaving seminar will give an opportunity to the textile
technologists to share their thoughts to meet the challenges
and such an interaction will be highly productive.
More...
| Venue |
Hotel Fortune Park Galaxy |
| Contact Person |
Mr. Haresh Parekh |
| Trade Fair City |
Vapi |
| Participants |
Fees: Members of TAI: Rs.400/-, Non Members: Rs.800/-,Students:
Rs.200/- |
|
Disclaimer: