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Last updated: 01 Apr, 2015  

msme-THMB-2010.jpg Mass awareness key to success of MSME programmes

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Bikky Khosla | 24 Mar, 2015
There is no dearth of schemes meant for the micro, small and medium enterprise sector. The MSME ministry alone offers close to 58 of them, and if we add to them those offered by other bodies such as NSIC, KVIC, and Coir Board the list will get much longer. But compared to this the awareness level about these schemes and programmes is very poor. The local industry offices do little to spread awareness and guide even those entrepreneurs who approach them for support. As a result, implementation of the schemes suffers. This needs to be changed.

Recently, the Odisha government has decided to initiate a mass awareness drive to address this challenge. According to media reports, the MSME secretary of the state already has notified the managers of district industries centre (DIC) to roll out the drive, which is to be followed by entrepreneurship and skill development programmes at the district level. In addition, the officials have been directed to compile all orders relating to credit, technology, revival of sick units and marketing support to the MSMEs and failure to complying with the direction will attract disciplinary action for the officers concerned. This is a praiseworthy step, needless to say.

I think the Centre should also step into a bigger role in this direction. Till now, hardly any efforts have been made towards spreading awareness among the country's MSME units about the schemes available. Most of the existing policies and programmes are not implemented in proper spirit. Lack of information about schemes, lack of knowledge of bankers and officials about them, rejection of applications on unfair grounds, paperwork, red tape, delay in sanction of loans ... these are some of the common problems which have never been addressed, making it difficult for MSMEs to benefit from the schemes.

Similar problems are faced by small exporters. There is lack of information not only about the available schemes but also about various important aspects of international trade, such as changes in international and domestic trade, market development, taxation, logistics and supply chain management, international payment and transaction, overseas marketing operation, technology transfer, international collaborations, market research, business management skills, etc. In the background of this, the government should undertake a massive drive to create awareness about the available schemes and provide a one-stop platform that can serve all-round information needs of the SMEs.

I invite your opinions.

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Delayed Payment to
Mansih Mehta | Sat May 16 12:00:38 2015
Sir, As per MSMED ACT 2006 delayed payment clause should be in-forced on all the companies without exempting Government PSU Specially State run PSU's. This clause should be managed and frmaned in such a manner that anybody responsible should be punished with financially and legally. Companies officials often deny making payment within time and force SME to go through the business. Since the SME has already rendered its services or supplied goods to them they have to accept the dictatorship of larger companies for their withheld payment. In these cases State runs PSU are the foremost and they compel SME to provide them whatever they want without worring about payment. Usually the conditions are payment within 30 days but how much these 30 days payment condition is followed. Government should check at what instant SME is getting his payment after rendering service and supply. These companies save huge amount of interest and when there profit goes up there are notes in public for their good financial control and better decision making abilities. I just want to ask this is how we see MAKE IN INDIA making SME sector more vanurable by our own companies. If we dont follow our rules how can we assure other companies to follow. In case these traditions are followed in future than i am sorry to say we will be again be slave of some larger cooperates since our own government is making us toothless. Please take difficult and necessary steps for SME survival.

Everything is there in India
anonymous | Mon Apr 20 12:17:30 2015
I would agree with every MSME entrepreneur who shared their views, opinions, experiences, frustrations and every other emotion. The MSME is the most exploited sector of Economy right after Agriculture. The MSME sector provides employment and revenue sources. MSME units in agriculture sector provide processing of agriculture products of farmers, they are the source of revenue for the marginalized farmers. In spite of doing this, we are harassed by all known departments and banks. High rate of Interest, with additional charges. With high collateral sometimes as high as 400%. Departmental harassment. Have to name all. As in the topic, the Odisha MSME are the best in document, whose mangers at the DIC level are least concerned about the implementation, and their knowledge and awareness is nothing, compared to the eager entrepreneur. The policies and programs are many, with no funds available with any policy. If a consistent entrepreneur follows up a ODISHA MSME, if he turns himself into a consultant, he might earn better than being a Entrepreneur. With above reasons, the government would encourage trading activity then starting any new enterprises. These schemes are just dummies. The Odisha Food processing policy is just on papers, and the actions by the Govt are only good to read, as they are never implemented. Its just a waste of time.

Awareness about various scheme of Govt.
Ramesh Patel | Sun Mar 29 04:26:42 2015
Your article, about awareness of various schemes for MSME sector, is indeed eye opener to state & central governments. But, along with governments, various forum of MSME also spread awareness about it. The SMS Times & can play the leading role for it. At least, they should send this article to concerned government departments & personally to the Prime Minister Narendra Modi.

No One is Serious
Biswanath Bose | Sat Mar 28 19:30:21 2015
As per my real life experience "No One is Serious" to develop or promote MSME units and leave MSME unit owners on their fate. Bank exploit them the most, if anyone took any lone from the any bank they need to pay the highest interest rate, which is much higher than units profit margin.If any bank invest in your unit say 5lac as Cash Credit then Bank can earn 14% - 20%, which includes loan insurance, bank charges etc. even the MSME owner might have invested his 50 Lac and he is not able to earn similar % for 1st 3 ~ 5 year. Bank really give a damn if any MSME unit survive or not and in any case if you are a defaulter 2-3 months then they will say all abusive languages and send Recovery agents to harass you and humiliate you nearly every day. Agriculture Loan is 6% in Banks but MSME needs to pay 14 ~ 20% - WHY? MSME generates most job opportunity for the people but we suffer the most. Govt. Central or State only do the leap service for MSME no real action it doesn't matter which party because MSME Minister doesn't understand what is MSME and their problems, so they ask the bureaucrats and they just want their Salary and perks should come on time like Bank employees. Sales Tax officer will ask you to pay the tax first and they really don't bother if that MSME is making profit or not. Then come super stockist MSME products quality is equivalent to the branded one you can get 50% price of branded materials but they sale it on similar price of branded one. God help MSME in INDIA.

  Re: No One is Serious
SWAGATA ROY | Fri Apr 3 18:29:22 2015
200% right

Difficult to deal with govt offices and schemes
V. L. Patil | Sat Mar 28 16:22:24 2015
On the face of it, it appears that mass awareness will spread intended benefits, it should be however noted that many schemes are good for 'schemers' only (of course, with partnership with similar minded bureaucrats)! SME entrepreneurs are not illiterates that cannot get this information on their own. The truth is that they are disillusioned / disgusted when they try to get these benefits. If bureaucracy has any discriminatory powers, the schemes are then shared among like minded business schemers and bureaucrats. Decent people do not like to play those games. Only when they find that they will be at some loss of they don't join, they unwillingly deal with government offices and schemes. Otherwise they like to work hard and succeed on their own. I think the best thing is to request to shut such schemes down. And make field a fair play for all, reduce government interference in markets, banking, imports & exports etc down to zero.

Different approach for micro and small units
Shankar | Sat Mar 28 11:39:08 2015
It is true awareness about several schemes, opportunities, etc is totally lacking. In case of micro and small units, they are mostly business with the owner being whole and sole. Methods to reach out to these are different from what is effective with medium industries where an organized set up with different departments exist. For effective communication, outreach programmes should be separate for Micro and Small entities. Micro and small industries need more helpful hand holding.

Ministry itself not serious
Sunil Gupta | Sat Mar 28 01:08:08 2015
The ministry of MSME itself is not serious of implementing its schemes. They do not bother to reply to any communication sent to them. One cannot come to Delhi and meet personally. Unless this culture is changed nothing can happen. There is no difference in the way that this ministry operates when Congress was in power or BJP is in power. This concept was promoted by the past government so that People should travel to Delhi to avail the benefit with the obvious gain of the interested parties. Unless this changes the benefits will not go to the MSMEs who because of their small structure can never meet the expense to reach that benefit.

Dealyed payment
R.Srivathsan. | Fri Mar 27 14:59:23 2015
Regarding above subject I would like to suggest that All buyers of materials and services from MSME be it gvt. public institutions, corporate bodies, pvt ltd companies, traders shall be mandated to pay their suppliers in 45 days of supply6 as is mandated in brokerage firms in share transactions. This will eliminate corruptible, improve financial dynamics of firms and improve the health of MSME and Bankers will be healthy. The cost of production will also come down if there is firm date for return of funds.

  Re: Dealyed payment
Pratik shet for INDO FAB INDUSTRIES | Sun Mar 29 10:50:28 2015
This is one of the best suggestions. If it can be done for share transactions why not for SMEs. 

  Re: Dealyed payment
M.R.MIRZA | Tue Mar 31 15:33:01 2015
Very rightly said sir, If the MSME sector gets payment in 30 -45 day exactly half of the problem is solved, the small company having limited money resources has to go to bankers every now and then and the entrepreneurs has to spent majority of the time in managing finance.

Mass awareness is very critical for MSME's to flourish
Rajesh k | Thu Mar 26 10:22:10 2015
Sir, I think you have touched upon the right topic at the right time. With Modi Government in and Red Tape - promised to be thrown out of the window, now is the time to discuss the transparency in disbursing of various schemes to the right beneficiaries and not just those who patronize some Politicians and Bureaucrats in the MSME industry ministry. I hope you will wage a concerted war about this subject through your portal and make as many representations to the Federal and State Government alike till MSME's become a popular word in India's Economy.

The man becomes Immoral - 2045
M. Rahbari Nejad ( Amir ) | Thu Mar 26 09:19:40 2015
We are moving on the path as it directs us to Non-biological Intelligence to rule over the Human Intelligence. Your story is very much appreciated , but as I left above the realities as touches the societies , how to have the control of the people to be Moral in their promises in the trade and business activities . as you stated above that , ***There is lack of information not only about the available schemes but also about various important aspects of international trade,*** and the man becomes Immoral in 2045 what will be the situations . If the story talks about the Awareness , we have to be sure that the Technologies are fast growing and effects all over the business and trade by vastly enhanced Human Intelligence. I feel we have to direct the Trade Administration path into a simple but checked facilities Schemes which makes the Man to be aware of his / her global Role & relationship . We have to encourage people to think that to run the Business relationship for the good of trade circulations and not only for the individual profits and benefits . As the world sources are limited , there should be a Proper way to use them and to think about the future , this is something that the people have to understand to trade on the Items to use it for the requirement and not for individuality benefits. Regards- M. Rahbari Nejad(Amir )

Withdrawa of ISO payback scheme
Feroz S Mithaiwala | Thu Mar 26 03:03:20 2015
In today's competitive business world the consumers/buyers ask not only for competitive prices, good quality but also stress upon ISO certification. Small units cannot afford to begin the process of ISO certification for want of funds and the scheme of Rs. 75,000 refund after incurring by the small entrepreneurs has been withdrawn by the government. It kills the MORALE OF THE ENTREPRENEUR.

MSME awareness
Srivathsan.R. | Thu Mar 26 00:54:57 2015
It is right that most of the small and micro industries do not know the scheme available and there is no awareness program.The main hurdle in running the small industry is the lack of understanding by the financial institution regarding working capital requirement and upgradation for quality improvement.Each bank manager is afraid and just delays taking decision. It is true that when we sow the seed all do not grow to healthy plant and but not sowing is more dangerous with the fear that it may not be a healthy plant. Proactive involvement ant scaring the bankers for some decision which went wrong. No industry must be allowed to go sick. entrepreneurs are scarce in our country. One entrepreneur will bring in motivation to other five entrepreneurs.-.

Up grading of MSME
Ravi | Wed Mar 25 16:25:43 2015
Though it is public or private there should have a close watch on its functions by somebody could comment on. Otherwise it will be livelihood of somebody who thinks that I will get my remuneration if I do or do not)

amit agarwal | Wed Mar 25 12:40:36 2015
When the economy is opening up to foreign competition , the MSME sector should be given equal playing field by bringing down the interest rates to international levels.

NSIC- EMD Mandate
Harshil Mehta | Wed Mar 25 11:16:04 2015
it is been observed in spite of notification govt bodies does not exempt MSME- NSIC certified company for EMD/Security deposits. this is an ideal example of wastage of time and energy. babu's plays the vital role in "NON-DEVELOPMENT" of INDIA

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