Month: February 2021

Categories
MSME

MSME Loans: Bank of Maharashtra Ties Up With LoanTap Credit for Co-Lending to MSMEs

Mumbai, February 9: In a bid to facilitate loans to micro, small and medium enterprises (MSMEs), the state-owned Bank of Maharashtra inked a pact with LoanTap Credit on Monday. In a statement, the Bank said that it has entered into a co-lending agreement with the Pune-based non-banking financial company LoanTap Credit Products to help MSMEs in loans. Under the co-lending model, the bank will have an exposure of up to 80 percent while the rest will be borne by the LoanTap, the bank said in a release.

Bank of Maharashtra managing director and CEO AS Rajeev said that the co-lending is the system introduced by RBI in the wake of the liquidity crisis at non-banking finance companies. This is done to enhance the credit flow to the unserved and underserved sector and make available funds to the ultimate beneficiary at an affordable cost.

The RBI in September 2018, RBI had come out with a co-origination model between banks and NBFCs for providing credit to the priority sector. Last year in November, RBI rechristened the scheme as Co-Lending Model (CLM), and revised the terms to provide greater operational flexibility to the lending institutions.

BoM’s executive director Hemant Tamta said the co-lending model shall help the bank to meet the priority sector lending target. It will be beneficial for all NBFCs having wider outreach and customers, who will be facilitated with low cost credit from banks.

The co-lending model provides ease of loan sanctions at borrower’s convenience through digital lending platforms, which cover end-to-end loan processing cycle without manual intervention, from on-boarding of customers to loan disbursement and monitoring.

Categories
Business motivation

5 Steps to Start an Online Clothing Business

clothes business

Convenience has been the driving force behind a plethora of innovations. The COVID 19 pandemic has put a pause on our real-time shopping activities. As a result, the demand for online clothing businesses has risen. Many clothing business websites have been cropped up in the past few months.

According to a paper published by Technopak in Business Today, “the $130-million e-retail apparel has attracted investments worth $70 million, or 40% of the total funding Indian online retailers received in the past two years”.

So if you are an entrepreneur who wants to enter into this segment, starting a clothing business online has a lot of scope in the market.

  1. Find your Niche

Not everyone is your customer. Every business has a niche market, so you need to do your homework. The better you know your customers, the better are your chances to give your customers what they want.

You will be dedicating a lot of time to your business, so research well. Always keep in mind that your clothing business idea is creative and authentic.

  1. Business Plan & Startup Capital

Having a well-researched business plan is very important. A business plan is a road map that will guide you to reach your ultimate destination. From manpower, warehousing, marketing, costing, sales to delivery logistics, and fund requirements, a business plan consists of everything.

Whether you wish to manufacture clothes or want to sell them wholesale, your business plan must be as per your need.

  1. Showcase your USP & Pick your brand name

What sets you apart from the crowd? What makes you different from your competitors? Why customers should buy your product? It could be your designs, your premium quality fabric, authentic patterns, or fine-cuts. Find out your USP and build your marketing strategy on it. It will not only set you apart from your competition but will also attract customers.

Once you have defined your USP, it is time to pick your brand name. A brand name is going to represent you in the market. So, make sure that the name is catchy, easy-to-remember, and crisp. Most importantly, it should define your USP.

  1. Choose an e-Commerce platform

Whether you decide to sell clothes online or planning to set up a clothing store, choosing an e-commerce platform is beneficial. An e-commerce platform will help you to connect your store with your potential customers.

This will give you a platform to showcase your designs to a wider set of audiences. Even those who are sitting far away will be able to buy from you.

  1. Build a Website

Create a visually appealing website. Having an official website can provide benefits to your online business. You can accept orders round the clock, provide excellent customer service, and showcase all your products.

As consumers are likely to stay home for a longer period due to the pandemic, starting an e-commerce clothing business can be profitable. If you are interested in starting one, join our ‘Everything about Entrepreneurship’ course and learn the in-depth concept of the clothing business from the industry experts.

To know more about our course, click here: https://www.badabusiness.com/?ref_code=ArticlesLeads

Categories
Business motivation

Cosmetic Business Store: How to open your store in 7 Easy Steps

cosmetic business

From the ancient beauty practices rooted in Ayurveda to international brands introducing their organic makeup products, the market is brimming with cosmetic stores. The Indian beauty industry has seen enormous innovation and entrepreneurship in the last couple of years.

According to a Redseer report, the cosmeceutical market is in India is growing at a CAGR of 25 percent. India is set to become one of the top five global markets in 2025 by revenue.

In India, the history of beauty practices dates back to the Indus Valley civilization. There has been historical evidence that proves the indulgence of both men & women in self-beautification. As the ancient practices paved way for the modern ones, the rise in the cosmetic business has been observed.

If you are a young aspirant who is interested in beauty and skin products, opening a cosmetic store is a brilliant idea. The market is flourishing and the demand for beauty products is increasing with each passing day.

Want to start a cosmetic business? Here are 5 things you must do to start a cosmetic brand of your own:

  1. Understand the Market

Be it a printing press or a cosmetic store, understanding your target market is important. To establish a successful cosmetic business keeping an eye on the popular trends is crucial. Understand your consumer behavior and what they expect from your product.

You can take a survey by preparing a specific set of questions and asking your potential customers. Or, you can take help from professionals to conduct market research to get the real picture.

  1. Create a Business Plan

When we say, we are asking you to ‘create’ a business plan and not just write it. It takes a lot of information and thorough research to come out with an excellent business plan. A detailed business plan is a must for a cosmetic business store.

Understand your business goal. Evaluate all the factors such as the capital, rent for space, salaries of staff, procurement of products, and marketing & advertising in your business plan.

  1. Learn about the cosmetic industry

Understanding the fundamentals of any industry is essential to ensure the success of any business. So, if you want to a successful entrepreneur, understand the dynamics of the cosmetic industry. Research and know more about your competitors and what makes them popular.

  1. FDA`s Regulation

In India, FDA has specific rules about the ingredients that you can or cannot in your products. So, get a sound knowledge of the FDA`s regulations about the manufacturing and labeling of cosmetic products. You must also understand the ground rules for sale, labeling, and production.

  1. Register your Cosmetic Store`s Name

If you are planning to open a cosmetic store at a small level, you can start it without registration. But, if you want to start it on a big level, then you must select a nice name and register it with the local authorities.

  1. Choose a range of Cosmetic Products

It is essential to always select cosmetic products by keeping the market analysis in mind. Always keep a range of cosmetic products in your store that is in demand.

  1. Take your store Online

In this digital age, almost every business is trying to grow its online business. An online cosmetic business store can open a world of opportunities for you. Create a beautiful design with an excellent user interface. Use the power of social media to attract more visitors. Build a meaningful relationship by interacting with customers online and make a great profit margin in the cosmetic shop.

A business cannot survive without its customers. So, whether you already have a cosmetic store or planning to open one, building an online presence is a must!

What else you will need to open a cosmetic business store? Discover all the insights and in-depth knowledge related to business with our Everything about Entrepreneurship. To know more click here: EAE = https://www.badabusiness.com/?ref_code=ArticlesLeads

Categories
Motivational

As the campaign Bharat Ratna for Ratan Tata Trends on Twitter, millions of Netizens Joined In!

sir ratan tata

The campaign #BharatRatnaforRatanTata that seeks to confer the highest civilian award Bharat Ratna for the most celebrated industrialist in the world has received support from millions of supporters.

On 6th February, the internationally acclaimed motivational speaker and business coach Dr. Vivek Bindra posted a tweet. Praising the legendary industrialist for being an inspiration to millions of young entrepreneurs, he requested to confer the Bharat Ratna for Ratan Tata.
The campaign was initiated by Dr. Vivek Bindra, CEO, and founder of Edtech startup- Bada Business. He tweeted on February 5, 2021, urging the millions of Indians to join the campaign.

The celebrated industrialist Ratan Tata took to Twitter on Saturday to express his gratitude for the unconditional love and respect. But, he urged the users to discontinue the campaign #BharatRatnaforRatanTata.

On Saturday, he tweeted, “While I appreciate the sentiments expressed by a section of the social media in terms of an award, I would humbly like to request that such campaigns be discontinued. Instead, I consider myself fortunate to be an Indian and to try and contribute to India’s growth and prosperity.”

Born on December 28, 1937, Ratan Tata completed his studies at Cornell University, New York in 1962. Later on, he returned to India and worked at multiple Tata Group businesses. With his unmatched business sense, he climbed the corporate ladder to become the chairman of Tata Industries, and later in 1991, he became the Chairman of Tata Group.

Ratan Tata had received the Padma Bhushan and Padma Vibhushan in 2000 and 2008. Ratan Tata has also received the UK`s Honorary Knight Commander of the Order of the British Empire in 2009. He had also received similar awards from the governments of Japan, Italy, and France.

Categories
Finance

5 Schemes to Financially Empower Women Entrepreneurs in India

Schemes for Women Entrepreneurs | Representative Image (Photo Credits: Pixabay)
Schemes for Women Entrepreneurs | Representative Image (Photo Credits: Pixabay)

The start-up ecosystem has been blooming in India without any gender disparity, more and more women are also establishing and running their own businesses successfully and independently. In many sectors, the women-led businesses have outshone the male ones. Even the government through its various organisations, several private and public sector banks and other non-banking financial institutions are progressively supporting the women-led initiatives. They are providing loans and funds at easier and flexible terms of repayments and lower interest rates to female entrepreneurs so that they easily overcome the financial bottlenecks and a smooth and efficient functioning of business is undertaken.Women-Led Businesses in India Get Major Boost As Visa Announces Grants To Empower Budding Businesswomen.

Here are 5 schemes to financially empower business women :

Pradhan Mantri Mudra Yojana

Under this central government scheme, loans ranging between Rs 50,000 to Rs 10 Lakh are offered to women entrepreneurs at easy terms of repayments. It is managed by the Micro Units Development and Refinance Agency (MUDRA) and offers loans to production, trading and service sector businesses.

Stree Shakti Package For Women Entrepreneurs

Under this scheme offered by the State Bank of India, women who have at least 50 per cent of the ownership stake can avail a discounted rate of interest by 0.50 per cent if the loan amounts is Rs 2 Lakh or more. The applicant should however taken part in state run Entrepreneurship Development Programmes.

Orient Mahila Vikas Yojana Scheme

Under this scheme offered by the Oriental Bank of Commerce, women who have at least a 51 per cent of the ownership stake can avail loans ranging from Rs 10 Lakh to Rs 25 Lakh without any collateral security. With a payback period of seven years, a concession of up to 2 per cent is also given on the loan. Business Confidence in India Improves As Economic Activities and COVID-19 Vaccination Drive Gathers Pace: NCAER Survey.

Stand-Up India

Under this scheme offered by the Small Industrial Development Bank of India (SIDBI), loans are offered to manufacturing, trading and service sector businesses. Loan amount ranging from Rs 10 Lakh to Rs 1 Crore are offered to the applicant. It can be repaid within seven years from the date of issue.

Bharatiya Mahila Bank Business Loan

Under this scheme, loans are offered up to Rs 20 Crore for businesses in the manufacturing and production sector. It also provides, a concession up to 0.25 per cent on the interest rates is also provided. Under it, one can avail a loan up to Rs 1 Crore without any collateral security.

Categories
Finance Startup

Women-Led Businesses in India Get Major Boost As Visa Announces Grants To Empower Budding Businesswomen

Women Entrepreneurs in India (Photo Credits: Pixabay)

New Delhi, February 8: In a bid to boost women entrepreneurship globally and empower budding businesswomen, Visa on Monday announced the recipients of its grant programme in India. This would be Visa’s first global grant programme which will be in partnership with several startups that are led by woman entrepreneurs. Visa has partnered with IFundWomen, Bunko Junko, My Chapter One and MoWo Social Initiatives, where each one received a Rs 7,00,000 grant from Visa.

Resources from Instamojo will grow their businesses digitally, in a continued effort to offer better services to their communities. In a statement, Kevin Phalen, global head of business solutions, Visa that  access to funding, educational resources and a digital presence are fundamental building blocks that will help small businesses get back to not only surviving, but thriving.

Women-owned enterprises in India have grown from 14 percent to 20 percent in the past decade and employ between 22 to 27 million people.

  1. Highlighting this growth in women-led startups in India, Visa received applications from hundreds of businesses across the country in sectors including apparel and fashion, healthcare and wellness, food and beverages and art and events.
  2. The company evaluated 16 semi-finalists by a jury panel comprising senior leaders across Visa, FICCI FLO (FICCI Ladies’ Organization) and Instamojo. The final winners were selected based on the count of jury votes.

In addition to the grants, Instamojo, the digitization partner, is providing the winners with tools and resources to help build their digital presence.

Categories
Business motivation

Business Confidence in India Improves As Economic Activities and COVID-19 Vaccination Drive Gathers Pace: NCAER Survey

Evaluation of Business Performance
एंटरप्रेन्योर

New Delhi, February 8: The business confidence in India has improved as economic activities pick up and vaccination drive gathers pace. A study by the National Council of Applied Economic Research (NCAER) stated that the NCAER Business Confidence index (BCI) rose 29.6 per cent on a q-o-q basis during the third quarter of FY 2020-21. “The BCI rose further by 29.6 per cent on a q-o-q basis, rising from 65.5 in 2020-21:Q2 to 84.8 in 2020-21:Q3,” and NCAER statement said.

The report stated that the business sentiments remained worse than they were during the corresponding period in the previous year. According to a report by IANS, The proportion of respondents expecting that ‘overall economic conditions will improve in the next six months’ increased by 4.8 percentage points. This was 29.8 percent in 2020-21, Q2 to 34.6 per cent in 2020-21, Q3.

The respondents are also expecting that the ‘financial position of firms will improve in the next six months’ increased by 3.1 percentage points, from 27.7 per cent in 2020-21, Q2 to 30.8 per cent in 2020-21, Q3, the study reported.

The BCI increased for the consumer durables sector by 26.1 percent on a q-o-q basis in 2020- 21, Q3. For consumer non-durables, it increased by 32 percent, for intermediate goods by 37 per cent, for capital goods by 27 per cent, and for the services sector by 32.5 percent, the report added.

Categories
MSME

MSMEs in India: Govt Aims To Raise MSME Sector’s Share in GDP to 40% From the Current 30% To Benefit Rural Poor, Says Nitin Gadkari

Nitin Gadkari | File Image (Photo Credits: Facebook)

New Delhi, February 7: Union Minister Nitin Gadkari said on Saturday said that the government aims to increase the MSME sector’s share in the GDP to 40 per cent to benefit the rural poor. At present, around 6.5 crore micro, small and medium enterprises (MSMEs) contribute 30 percent to the GDP. While addressing a workshop at the Mahatma Gandhi International Hindi University at Wardha in Maharashtra, Gadkari emphasised that a policy has to be made to empower the poor.

The MSME Minister added saying that village industries and Khadi generate as much as Rs 88,000 crore on an annual basis. “We are not in favour of westernization, but we are in favour of modernization, in the villages. This is the time for socio-economic transformation”, Gadkari said. He said this can be increased if policy is flexible and innovative, and is aimed at improving the life of people living in villages. The minister also stressed that goods produced by village industries can be sold better if they are marketed better.

Gadkari stressed on the point that migration of as much as 30 percent of the country’s population from rural areas has taken place since independence due to lack of growth of the village economy. Gadakri recalled the philosophy of Mahatma Gandhi, Vinoba Bhave, Pandit Deendayal Upadhyaya, Ram Manohar Lohia and Jayaprakash Narayan and said that their aim was the same – to improve the lives of the poor living in villages. “Unless solutions are found to ensure that employment is generated in villages, and they are clean and have enough facilities, the dreams of these leaders will not be fulfilled”, he said.

Categories
Business motivation

Ease of Doing Business in India: 4 More States Complete Ease of Business Reforms, Total 12 States Become Eligible To Mobilise Additional Financial Resources

New Delhi, February 7: The total number of states in India that have undertaken ‘Ease of Doing Business’ reforms stipulated by the finance ministry has gone up to 12 with the addition of four more states. On Saturday, four states — Assam, Haryana, Himachal Pradesh and Punjab undertook the ‘Ease of Doing Business’ reforms. With this, these states have become eligible to mobilise additional financial resources and have been granted permission to raise additional Rs 5,034 crore through Open Market Borrowings.

The ease of doing business is an important indicator of the investment friendly business climate in the country. Improvements in the ease of doing business will enable faster future growth of the state economy, a finance ministry statement said.

In India, total 12 states that fall in the list include Andhra Pradesh, Karnataka, Kerala, Madhya Pradesh, Odisha, Rajasthan, Tamil Nadu and Telangana, Assam, Haryana, Himachal Pradesh and Punjab which was confirmed by the Department for Promotion of Industry and Internal Trade (DPIIT). After completion of reforms facilitating ease of doing business, these twelve states have been granted additional borrowing permission of Rs 28,183 crore.

In May 2020, the government had decided to link grant of additional borrowing permissions to states that undertake the reforms to facilitate ease of doing business. In view of the resource requirement to meet the challenges posed by the COVID-19 pandemic, the Government of had on May 17, 2020 enhanced the borrowing limit of the states by 2 per cent of their GSDP. Half of this special dispensation was linked to undertaking citizen centric reforms by the states.

So far, 17 states have carried out at least one of the four stipulated reforms and have been granted reform linked borrowing permissions. Out of these, 12 states have implemented the “one nation one ration card” system, 12 states have done ease of doing business reforms, 5 states have done local body reforms and 2 states have undertaken power sector reforms. Total reform linked additional borrowing permission issued so far to the states stands at Rs 74,773 crore.

Categories
Startup

New Rules for OPCs To Directly Benefit Startups, Small Companies and Innovators in India; Check List of Amended Rules for One Person Companies

startup ipo india

New Delhi, February 6: In a bid to directly benefit Startups in India, especially those who are supplying products & services on e-commerce platforms, the incorporation of  is being incentivized by amending the Companies (Incorporation) Rules. This would benefit the startups and innovators in the country to bring in more unincorporated businesses into the organized corporate sector.

This is being done to allow OPCs to grow without any restrictions on paid up capital and turnover, allowing their conversion into any other type of company at any time, reducing the residency limit for an Indian citizen to set up an OPC from 182 days to 120 days and also allow Non-Resident Indians (NRIs) to incorporate OPCs in India.

In addition, the fast track process for mergers under the Companies Act, 2013 has also been now extended to also include mergers of Startups with other Startups and with Small companies, so that the process of mergers & amalgamations is completed faster for such companies.

The amendment notification was issued on February 1, 2021. The amendments to the Rules governing OPCs will cover the following, from April 1, 2021:

  1. Previously NRIs were not allowed to incorporate OPCs. Now any natural person, who is an Indian citizen, whether resident in India or otherwise would be allowed to form an OPC.
  2. For being considered as a resident in India, the residency period has been proposed to be reduced to 120 days from 182 days for NRIs.
  3. Rule relating to voluntary conversion unless OPC has completed two years from the date of incorporated is proposed to be omitted and with effect from 01.04.2021, Conversion of One Person Company into a Public company or a Private company shall be permitted anytime. A One Person company may be converted into a Private or Public Company other than a company registered under section 8 of the Act, after increasing the minimum number of members and directors to two or minimum of seven members and three directors as the case may be,
  4. Similarly the limitation of Paid up capital & turnover presently applicable for OPCs (paid up share capital of fifty lakhs rupees and average annual turnover during the relevant period of two crore rupees) is being done away with so that there are no restrictions on the growth of OPCs in terms of their paid up capital & turnover.
  5. Rationalization of e-forms applicable for OPCs by omitting e-Form No. INC-5 and modification of e-form INC-6 (application for conversion from OPC to a Private company or a Public company and also Private company to OPC.