The landscape for SMEs is increasingly looking more positive and promising. To build on and deliver this promise, the Government of India has recently launched several initiatives like Make in India and Standup India, with the primary objectives of making India a global manufacturing hub.
The aim is to raise the contribution of the manufacturing sector to 25% of GDP by 2025 from the present 16%, and meet an export target of $900 billion by 2019-20.
The focus is on making Indian SMEs globally viable and competitive. But SMEs tend to face certain challenges such as lack of skilled manpower, no brand name recognition, deficit bargaining power, little or no budgets for operating capital, expansion, digital marketing and other growth activities.
One way for SMEs to overcome these challenges is to tap into the startup boom. A number of startup solutions and platforms are now working on enabling SMEs to run and grow your business more effectively.
Over the long term, your business success and growth depends on brand building, rather than spending more and more on marketing campaigns.
Multinationals and other big conglomerates have global name recognition and pockets deep enough to leverage their brands. SMEs who compete with these big companies for the same customers cannot afford to make the mistake of considering brand building as a luxury instead of the necessity it is.
So it’s critically important that small businesses use these startup brand building tools and reduce their customer acquisition cost.
This startup helps SMEs improve its business by automating and integrating the company’s product and all its disconnected marketing and sales channels at one place. Leado helps SMEs configure interactions between different channels, build complex workflows in minutes and scale with astute experiments and analytics.
Leado boasts of testimonials from clients claiming a growth rate of 2x-10x times in just one month after using their service.
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Around 70% of the recurring cost of a manufacturing SME is raw material procurement. SMEs, however, often find themselves at the receiving end of a partisan treatment by the market with large corporates getting all the price advantage due to the volume of their purchase.
Power2SME is a buying club that helps SMEs procure raw material as a result of high volume purchase and buying power. With 50,000+ registered SMEs, 100+ suppliers, and 140+ brands, Power2SME increases the efficiency of the supply chain by eliminating the intermediaries and thus levels the playing ground for SMEs.
Moreover, Power2SME ensures that its member SMEs never fall short of working capital by providing quick and easy access to finance on competitive interest rates.
4. Coin Tribe.
Small businesses are driven by profitability, stable long term values, and operate in a local market. Startups, on the other hand, focus on top-end revenue, growth potential, and have a national or global clientele.
Though demonetisation has helped bring in a bigger section of the SME sector into the formal lending system, there are still many hindrances for small businesses applying for bank loans.
The online lending marketplace, Coin Tribe, caters especially to the credit needs of small enterprises with a turnover range of Rs.1.50 crore. This startup helps businesses secure loans of up to Rs.30 lakh by underwriting the proposal (in case of defaults), thus reducing the risks for lenders.
According to information provided by the company to the Economic Times, Coin Tribe has already helped around 2,000 small businesses raise funds by way of loans.
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