Tag: MSME

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Finance

5 Key Things Entrepreneur Should Know Before Applying For A Small Business Loan!

5 Key Things Entrepreneur Should Know Before Applying For A Small Business Loan!
5 Key Things Entrepreneur Should Know Before Applying For A Small Business Loan!

In a report published by Economic Times, “the Indian economy is expected to be a $5 trillion economy by 2025 and the MSME sector is expected to play a very crucial role in this growth story.” The MSME sector in our country has been the backbone of the economy. It contributes around 30 percent to the GDP and employment generation.

With the government`s ‘Make in India’ initiative, this sector is set to play an important role in supporting domestic companies and foreign multinationals to set up manufacturing units in India. Till now, 83 startups have entered the elite Unicorn club which has made India the third largest startup ecosystem in the world after the US and China.

But not every startup joins the Unicorn club. Some struggle to sustain themselves due to the lack of funds. And for an entrepreneur, the constant lookout for sources of working capital is like a nightmare, especially for those who run a small and medium-sized enterprise (MSMEs) with limited assets or collateral, finding different ways for fundraising.

So, if you are an entrepreneur and want to take a loan from a bank or a non-banking financial company, here are 5 things to improve your chances of getting a business loan from a bank or a non-banking financial company:

1. Maintain a Healthy Credit Score

A credit score symbolizes the creditworthiness of a person or business. It is assessed based on the payment history of the individual or business. So, the personal credit score of a person or a business is collected from the multiple institutions that maintain the records of the payments. These records can significantly affect the business’s eligibility for a loan.

If you pay your EMIs regularly and on time then you will have a healthy credit score which indicates that you are financially disciplined and are unlikely to default on repayment. Although the credit score that is required to take a loan varies and depends on the lender, a credit score above 700 will enhance your credibility.

2. Maintain Adequate Cash Flow in the Business

When you apply for a small business loan, the financial lender will investigate your business cash flow (past and future projections). An adequate cash flow will determine if the size of the loan that you are seeking is appropriate. Your previous loan history and existing debts will also be analyzed to determine whether you will be able to pay the loan`s monthly installments without defaulting. To ensure your loan approval, maintain the adequate cash flow in the business.

3. Keep all the Documents Required for Loan Application

One of the most important steps is you keep all the necessary documents ready when applying for a business loan. Keeping all the documents ready and in place will streamline the process and will make things smooth for you as well as the lender.

The following is the list of documents for verification:

  • Identity proof
  • PAN card
  • Address proof
  • Proof of business
  • Business and personal bank statements (last six months)
  • Business and personal tax return records
  • Business’s financial statements
  • Business’s legal documents such as commercial lease, and franchise agreement.

4. Be Insured

Being an entrepreneur involves a lot of risks. Hence, personal or business insurance is a must so that the loan can be paid off in case of any unfortunate event. Your probability of getting your loan approved is directly related to the risks associated with you and your business. The less risky your business is, the higher the chances of your loan getting approved.

5. Know the Best Time to Apply for a Loan

Many entrepreneurs often waste their time contemplating the ideal time to apply for a loan. However, there is no best time to apply for a loan, as the time of applying has minimal effect on the chances of your loan getting approved. Many business owners believe that the best time to apply for a loan is when your company is in the need of finances.

Many startups have to close their operations due to a lack of funds. But with a business loan, you can ensure that your business sustains in the market. There are many government schemes as well that offer business loans at nominal interest charges. So keep the above-mentioned points into consideration when applying for a small business loan.

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Categories
Technology

Learn & Earn Together With Bada Business App!

Learn & Earn Together With Bada Business App!
Learn & Earn Together With Bada Business App!

You have started your dream business and have just bought a new phone. But is it really useful without having things that can help you grow your business? Without useful apps, your smartphone is as good as a telephone with no apps in it.

As an entrepreneur, you need to keep yourself as well as your phone updated with the latest apps that can help you learn and grow with quality content related to different aspects of the business. That being said the app store in today`s world consists of millions of applications that claim to be extremely informative. However, that’s not true.

As an entrepreneur who is always on his toes because of the multiple roles, your device should reflect what you truly believe in productivity. So here are going to tell you about a wonderful app that is informative, trustworthy, and can be your best friend in your entrepreneurial journey.

The Bada Business App was introduced by Dr. Vivek Bindra with the sole aim to provide support and guidance to the young entrepreneurs who often face challenges in business. The app features more than 300 exclusive videos by top industry leaders and Dr. Vivek Bindra- one of the best motivational speakers in India.

The Bada Business App has a 4.3 rating and has 50,000+ installs on the Google Play store. Though the app takes up only 45 Mb to download, it is a reservoir of fundamentals of business with structured strategies and frameworks related to entrepreneurship. The best thing about this app is that it offers its users a high quality of content in Hindi as well as the English language for India`s MSME, SME, Solopreneurs, Entrepreneurs, other professionals, and students.

The courses and study material are perfectly organized for entrepreneurs to ensure that learning continues with earning. You also get 300 MCQs assessment sheets to help you stay on track for daily progress. The app will not just help you to enhance and develop leadership qualities, but will also allow you to broaden your perspective. Thanks to its structured content framework- it offers content in two categories- Premium Content and Free Content.

Free Content

1. Articles: This section allows users to gain knowledge and information through well-researched articles written by subject matter experts. Users can access articles about business news, strategies & frameworks that can help them to grow business and increase productivity.

2. YouTube Video: For those who love to watch more than read, there are informative videos of Dr. Vivek Bindra on diverse business topics. All videos are focusing on one burning problem at a time and are categorized into different business problems for in-depth knowledge.

Premium Content

Premium content lets users venture into the world where they get access to the world’s most affordable learning program for Entrepreneurs, Solopreneurs, and Students- Everything About Entrepreneurship. Intending to deliver practical knowledge the premium content on Bada Business App helps entrepreneurs grow businesses, and for students, it gives opportunity to grow in their careers as individuals.

Key Features of Bada Business App

  • 300 premium, exclusive content only for you.
  • 300 reading material for easy implementation.
  • Live Q&A session on the app once every month for 24 months.
  • 300 MCQs based assessment sheets to track your daily progress.
  • 25 strategy frameworks for popular & most successful Leadership funnel.
  • 5 days of live training from Asia’s no. business Trainer, Dr. Vivek Bindra.
  • 50+ Problem-Solving Courses consisting of 15-20 videos focused on business areas for in-depth knowledge.
  • Find solutions to all your business-related problems from HR, Marketing, Sales, IT, Digital Marketing, Strategy, Execution, Branding, Positioning, Pricing, Legal, Manufacturing, Retail, Advertising, Leadership, Technology, etc.
  • Opportunity to learn from the most successful business leaders and billionaire entrepreneurs from India’s top corporate and startups.

This new age of business has given us the answers to all our problems, and if you look around, you’ll find tools meant for rising stars just like yourself – apps and services that let you manage many aspects of your business with the minimum investment of time and money, leaving you free to focus on the larger picture. So join the Bada Business App now!

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Categories
Process & Business Expansion

To Encourage Entrepreneurs Nitin Gadkari Will Promote Khadi Prakritik Paint Made From Cow Dung!

To Encourage Entrepreneurs Nitin Gadkari will promote Khadi Prakritik Paint made from Cow Dung!
To Encourage Entrepreneurs Nitin Gadkari will promote Khadi Prakritik Paint

Inaugurating the new automated manufacturing unit of Khadi Prakritik Paint in Jaipur, India`s first paint made from cow dung, Union MSME Minister Nitin Gadkari on July 6, 2021, said he would be the brand ambassador of Khadi Prakritik Paint and would promote it across the country.

“This will encourage young entrepreneurs to take up the manufacturing of the cow dung paint”, he added.

“Even inaugurating infrastructure projects that are worth lakhs of crores of rupees is not as pleasing and satisfying as inaugurating this manufacturing unit.” He also said that this would go a long way in empowering the rural and agro-based economy in the country.

“Khadi Prakritik Paint has immense potential of creating sustainable development for the benefit of the poorest of the poor and the target should be setting up a prakritik paint unit in every village,” the ministry said quoting Gadkari.

“Available in two variants, Distemper and Emulsion; Khadi Prakritik Paint contains ‘AshtaLaabh’ — eight benefits like anti-bacterial, anti-fungal and natural thermal insulation properties. This paint is eco-friendly, non-toxic, odorless, and cost-effective,” it added.

The new plant has been set up on the campus of Kumarappa National Handmade Paper Institute, Jaipur. Currently, the daily production of the paint is 500 liters which will go up to 1,000 liters per day, it said. Commissioning of the new unit will double the production capacity of the paint.

Categories
MSME

Govt Announces The Inclusion Of Retail & Wholesale Trades Under MSMEs

Govt Announces The Inclusion Of Retail & Wholesale Trades Under MSMEs
Govt Announces The Inclusion Of Retail & Wholesale Trades Under MSMEs

Minister of MSME and Road Transport and Highways Shri Nitin Gadkari announced revised guidelines for MSMEs with the inclusion of Retail and Wholesale trades as MSMEs. With this announcement, the retail and wholesale traders will now also get the benefit of priority sector lending under RBI guidelines.

He also said that earlier both the retail and wholesale trade sector was left out of the ambit of MSMEs. But now the revised guidelines will benefit around 2.5 crore retail and wholesale traders, and will also allow them to register on the Udyam portal.

Commenting on the development, the Confederation of All India Traders (CAIT) said, with this decision, traders will be able to avail requisite finances from banks and financial institutions under priority sector lending.

The traders can now avail the benefits of several other government schemes for MSMEs, he also added in his statement.

The move has an immediate impact on smaller retailers & wholesalers with businesses up to Rs 250 crore of turnovers in availing immediate-term finance as part of various schemes announced under Atmanirbhar Bharat.

The new guidelines received a warm welcome from the retail and trade associations stating that this will enable a large number of traders to get access to the crucial capital that has been impacted greatly due to the COVID 19 pandemic.

All the measures that were announced for the MSME sector in the past year will now also apply to the retail and wholesale traders as well. This landmark decision by the central government will have a structural impact on the sector and will provide better funding options for businesses that want to get structured.

Categories
MSME

Validity Of Udhyog Aadhaar Extended Till Dec 31, 2021; MSME Entrepreneurs Can Register For Free!

Validity Of Udhyog Aadhaar Extended Till Dec 31, 2021; MSME Entrepreneurs Can Register For Free!
Validity Of Udhyog Aadhaar Extended Till Dec 31, 2021; MSME Entrepreneurs Can Register For Free!

The Ministry of Micro, Small, and Medium Enterprises (MSME) has extended the validity of Entrepreneurs Memorandum (EM) Part-II and Udyog Aadhaar Memorandums (UAMs) from March 31 to December 31, 2021.

This extension will provide a sigh of relief as it will facilitate the holders to avail the benefits of the provisions under various existing schemes and incentives. The numerous benefits will also include Priority Sector Lending benefits for MSMEs.

All enterprises registered until June 30, 202, were earlier required to file a new registration on the Udyam Registration Portal before March 31, 2021.

UAM is a single-page registration form that involves a self-declaration format. In this form, the MSME entrepreneur will have to self-certify the existence of his/her enterprise, bank account details, owner`s AADHAR details, and other required official information.

According to an IBEF report, India has about 6.3 crore MSMEs majorly dominated by micro-enterprises, and the number of registered MSMEs grew 18.5 percent Y-o-Y to reach 25.13 lakh (2.5 million) units in 2020 from 21.21 lakh (2.1 million) units in 2019.

As of June 17, 2021, the portal has facilitated the registration and classification of more than 33 lakh enterprises, as per the official data.

According to the official statement issued by the MSME ministry, “the said amendment has been carried out considering the hardships faced by MSMEs during the prevailing COVID-19 situation and the representations received from the various MSME associations, financial institutions, and government departments dealing with the interest of MSME Sector”.

The MSME ministry expects the smooth migration of the existing UAM holders to the new system of Udyam registration, which was launched in July 2020. They would avail the benefits of the government schemes, thereby paving the way for empowering & strengthening MSMEs and leading to their faster recovery, boost to their economic activity and creation of jobs.

It is a one-time registration, and hence, no renewal is necessary. A permanent registration number is provided post the registration, and after completion of the process, an online certificate will be issued.

The enterprises can register for free on https://udyamregistration.gov.in  and without any documents. However, they will require PAN and Aadhaar cards for registering on the Udyam portal.

Categories
MSME Technology

Nitin Gadkari: India`s Transport Sector Will Transform With Bio-fuels & Low-Cost Battery Technology

Nitin Gadkari: India`s Transport Sector Will Transform With Bio-fuels & Low-cost Battery Technology
Nitin Gadkari: India`s Transport Sector Will Transform With Bio-fuels & Low-cost Battery Technology

India`s Union Minister for Road Transport & Highways and Micro Small & Medium Enterprises said that the transport sector in the country is transforming rapidly with the growing use of bio-fuels in all kinds of vehicles.

While delivering the plenary address at a three-day virtual Conference of BRICS Network Universities based on the theme of electric mobility, he also added that the country has also made a lot of progress about low-cost battery technology. It is not only good for sustainability and the environment but also the economy as it will open up new livelihoods in the country.

The conference was inaugurated at IIT Bombay on June 16, 2021, and was a part of the engagements that India is hosting under the education stream during its Chairship of the 13th BRICS Summit this year. IIT Bombay is the lead institution of India for the BRICS Network University.

Eighteen experts from Brazil, Russia, India, China, and S. Africa discussed the distinct aspects of electric mobility like traffic management, hydrogen technology, hybrid vehicles, lithium-ion batteries, and linkage between e-mobility and livelihoods for three days.

Over 100 students, researchers, and faculty from the BRICS Network Universities of the five-member countries participated in the conference.

Shri Nitin Gadkari also urged the IITs in the country to dig deeper and further research innovative technology to bring a revolution in e-mobility. He also called for research cooperation among the BRICS countries in this sector.

Secretary, Higher Education, Amit Khare expressed hope that the interactions between the best minds from the BRICS countries will benefit each member country in their collective quest for sustainability and inclusive growth.

BRICS Network University is a union of higher education institutions of the five BRICS member countries, formed to enhance educational cooperation in general, and especially in the realm of research and innovation.

Categories
Business Startup Ideas MSME

5 Profitable MSME Startup Ideas You Can Kick-start In India!

5 Profitable MSME Startup Ideas You Can Kick-start In India!
5 Profitable MSME Startup Ideas You Can Kick-start In India!

Small business entrepreneurs have many plenty of opportunities to explore. However, all they need is a great small business idea.

Today, most young professionals want to build their start-ups. But, the major reason why most people do not dare to pursue their dreams is due to lack of funds, and MSME startup ideas.

Sometimes it is also the lack of in-depth knowledge and confusion about how to start an MSME business, due to which many young wantrepreneurs remain disillusioned. Though, what they are not aware of is the fact that not all good business ideas require large funds.

According to a study conducted by IBM Institute for Business Value found that 91% of startups fail within the first five years and the most common reason is – lack of innovation. However, there is one more reason behind India`s high rate of startup failure- choosing the wrong MSME startup business.

Here is a list of profitable business ideas that you can start in India with low investment:

  1. Print on Demand Business

Print on Demand business or a POD business is one of the best MSME startup ideas. The principle behind this business is really simple. If you start a business selling unique printed T-shirts, all you have to do is place your order with the vendor, after you receive the order. Once you have received the payment, your vendor will send the T-shirt to the customer.

You can start selling stylish hoodies, T-shirts, and customer tote bags. You do not need to invest in stock or maintain a warehouse, and profit will be all yours. The average time to start this business will take 3 to 5 days.

  1. Flipping Business

There are so many times that we purchase used cars or furniture that is in very good condition. This not only helps us to save few bucks but also serves its purpose. Earlier it used to be thrift shops, however, today, it is a full-fledged business.

With the help of websites such as OLX and other websites, you can easily start this business.  If you have the great sense to see the right value of a used product, you can make good profits by reselling or flipping it online. It is one of the best MSME Startup ideas in India that requires from no to very minimum investment.

  1. Adventure Activity Organizer

If you are an adventurer and want to take the offbeat industry to build a startup, you can become a hiker, trekker, or simply organize adventure activities. You can become a certified mountaineer by taking one month of training in India.

Once you complete the training, you become a certified organizer and can start taking people out on adventure hikes. Today, people, especially millennials are more inclined towards exploring local places. This has opened new business opportunities for tourism. They are more than willing to pay premium prices if a good experience is promised. However, becoming a professional hiker or trekker requires some necessary training and fitness levels.

If you want to spend the rest of your lives amidst the beautiful places in India, this MSME startup idea is best suited for you.

  1. Dance Coaching Classes

Are you passionate about dance? Do you love dancing? Do you have killer moves that make everyone fall in love with your dancing skills? If the answer is yes, then you can open a dance coaching class.

It is an age-old form of entertainment, and nowadays it is highly commercialized. It also offers lucrative opportunities to those who want to pursue this field as their full-time career. However, before opening a dance coaching class, it is best to decide which type of clients you would like to teach. Also, it would be wise to decide the genre of the dance.

  1. Organic Farming

Organic farming is a brilliant MSME startup idea in India. The awareness regarding health and nutrition has made today`s generation more food-conscious. So, if you have land, you can think about starting organic farming. You can either study about it from an Institute or can take a professional`s advice before starting the business.

There are lots of MSME startup ideas that you can start in India as they are in great demand and require minimum requirements. You can use one of the ideas we have mentioned above to kick-start your entrepreneurial journey.

You can also take the ‘Everything about Entrepreneurship’ course from Bada Business to gain in-depth knowledge about how to set up a startup from the scratch.

Categories
MSME

MSME Sector will Battle Ongoing COVID-19 Wave with Conviction & Lead India to Positive Growth Trajectory, Says Union Minister Nitin Gadkari

Nitin Gadkari (Photo Credits: Facebook)

Union MSME Minister Nitin Gadkari has said that he is confident that the firms in the micro, small and medium sector will fight the second wave of coronavirus pandemic with conviction, leading the country to a positive growth trajectory. Gadkari also added that the MSME sector battled the first wave of COVID-19 outbreak with great resilience and came out with strong growth projections.” 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.

Union MSME Minister said, “As a country, we battled the first wave of COVID-19 with great resilience and came out with strong growth projections. And I’m confident in the ability of the industry and MSME sector to battle the ongoing wave with similar conviction and lead India to a positive growth trajectory.” MSME Sector in India Has Huge Potential To Become World’s Largest Manufacturing Hub, Says Nitin Gadkari.

While addressing an event organised by the Amazon India, Nitin Gadkari said that the Indian MSMEs have a great opportunity of getting integrated with the global supply chain as various countries across the globe are looking to diversify their supply chain out of China.

He added that to enhance the competitiveness of the Indian MSMEs, both on national and global level, technology is a critical factor. “We need to ensure that digital transformation of India’s MSME sector takes place that enables them to capitalise on India’s current opportunity,” said Union MSME Minister Nitin Gadkari.

In May last year, amid the coronavirus pandemic, the government had introduced an Emergency Credit Line Guarantee Scheme, to help the struggling MSMEs back on their feet. This scheme was a part of the Rs 20 lakh crore package that was brought forward and executed by our finance minister Nirmala Sitharaman to repair the damage that has been done to this sector in the light of COVID-19.

Nitin Gadkari had earlier said that contribution of the Micro, Small and Medium Enterprise sector in the overall Indian economy, the coming years, will be enhanced to 40 per cent. Currently the firms in the Micro, Small and Medium sector contributes around 30 per cent in the overall gross domestic product in the country. Nitin Gadkari added that the works to increase export from the firms in MSME sector are in progress.

Categories
MSME

Udyam Registration Portal: Over 25 Lakh MSMEs Registered Through Centre Govt’s Online Initiative

A worker at an MSME firm
A worker at an MSME firm. | Representative image.

The central government is taking several schemes to promote and develop the MSME sector. Certain programmes have been undertaken for the welfare of the micro, small and medium enterprises. One such initiative is the Udyam Registration Portal, which was undertaken to simply the process of registering a firm as an MSME. The registration through the portal has crossed 25 Lakh so far. As per the data shared by Union MSME Minister Nitin Gadkari in Rajya Sabha, a total of  25,07,112 firms have been registered as the micro, small or medium enterprises on the Udyam Registration Portal till March 22, 2021. In November the registration toll stood at 11 lakh. Udyam Registration Portal: GSTIN No Longer Mandatory for Registering MSMEs.

Launched in July last year, the portal aimed to eliminate the excessive paperwork involved in the registering process, making it more efficient and streamlined. The objective of the portal is to provide a single-page registration, consume less time and simplify registering process for MSMEs. The portal has been welcomed by the various existing MSMEs and the business owners who have been planning to get their firms registered under the sector. It has made the process of registration from transparent and user friendly. MSMEs in India: Over 11 Lakh MSMEs Registered So Far on Udyam Online System Since July; Here’s How You Can Register Your MSME Online.

Recently, the government also did away the need to have a GSTIN to register the firm as MSME through the Udyam Portal, following the complaints and criticism from the various groups and business owners in the sector. The business owners can now register under the MSME sector through the portal by using their PAN (Permanent Account Number) cards only,  the GSTIN is no longer a mandatory requirement for the same. It also aims to support several  micro-enterprises, including skilled craftsmen and artisans and other enterprises in the informal sector and unorganised sector, by easing the process of registration.

Categories
MSME

Centre Committed to Promote Renewable Sources of Energy, Especially in MSME Sector, Says Union Minister Nitin Gadkari

Union MSME Minister Nitin Gadkari. (Photo Credit: PIB)
Union MSME Minister Nitin Gadkari. (Photo Credit: PIB)

The government and its various enterprises have taken several initiative to promote and develop the micro, small and medium enterprises. Several schemes and programmes have been implemented with the aim to boost the MSME sector in the country and improve its competitiveness at par with the global competitors. There are have certain steps undertaken by the Nitin Gadkari-Led Union MSME Ministry to reduce the cost of operations and increase the efficiency of its functioning. At a recent event, Nitin Gadkari said that the government is committed to promote the use of renewable resources in the country, especially for the enterprises in the micro, small and medium sector. MSMEs Should Avail Concessional Finance and Install Rooftop Solar System to Increase Business Efficiency, Says Union Minister Nitin Gadkari.

Addressing a webinar, Union Minister Nitin Gadkari said that the firms in the micro, small and medium sector with good track record are now being encouraged for capital market. Gadkari added there exists a huge opportunity for investment in scrapping policy. The MSME Minister also invested foreign investors to invest in the Indian MSMEs and expressed hope that it will drive the sector to become the world’s largest manufacturing hub, by providing numerous opportunities.Union Minister Nitin Gadkari Inaugurates Technology Centres, Extension Centres To Boost MSME Sector.

He also promoted the use of solar energy for the micro, small and medium firms in another recent event. Gadkari had earlier urged the MSME owners to install rooftop solar for enhancing the efficiency of the firm and bring down the cost of operations substantially. He had said that the roof top solar system offers an excellent value proposition to Micro, Small and Medium Enterprises by significantly bringing down cost of electricity consumption, which on an average, is up to one-fifth of their operations cost. He also asked the people in the sector to avail concessional debt finance to do the same.

“I believe there is a strong business case for MSMEs to install rooftop solar and achieve significant savings to achieve the cost-competitiveness. I am confident that MSMEs will stand together in generating and consuming solar power using their rooftops,” Union Minister Nitin Gadkari had said while addressing an event virtually earlier this month.