Veteran Trainer and Consultant CS Arora says that SMEs must adopt modern technologies to stay ahead in competition. He says India needs to develop entrepreneurial skills in order to create more job opportunities. He shared with News MSME about his training experiences and what new entrepreneurs should be doing at the start of their journey.
The Narendra Modi Government has placed a lot of emphasis on entrepreneurship. What are the specific Government plans or schemes that facilitates entrepreneurs with a very small budget?
Modi government is paying special focus on entrepreneurship & self employment . Skill India, Start Up India, Stand Up India, Make In India are some of the programmes to develop manufacturing sector in India, MUDRA Yojana to support bank finance between Rs. 50000 to 10 lac have been introduced by Modi Government for the benefits of existing & proposed entrepreneurs.
To start any business, one needs to have a proper project plan. How to prepare a project plan?
Project Report preparation is very important aspect and covers two parts. First is the theoretical part that includes basic information like personal detail of entrepreneur, activity of the unit, nature of the unit e.g proprietary or partnership or company, about raw materials , manufacturing process, marketing demand competition, risk factors, detail of machinery, registration & licence required and the schedule of completion.
Second part includes numeric portion consisting of cost of project, means of finance, Profitability & Balance sheet statement of proposed five years, cost of production, schedule of administration expenses, term loan schedule of proposed 5 years, depreciation schedule of fixed assets, etc.
Marketing is one aspect that makes a business successful. What any entrepreneur must do to market the products and services.
For any new entrepreneur, before making plan for marketing, a survey about competition, demand of product & marketing budget should be considered. Modern digital means and tools definitely be adopted. Government Sector is also a vast market for MSME units. The entrepreneur can also opt retail market and/or export market.
Entrepreneurs need to prepare proper risk responses to make their business successful. What kind of common risks entrepreneurs face?
The common risk which are faced by entrepreneurs are categorized by act of god like earthquake, loss due to weather, by human behavior, locational risk like short supply of labour , materials & power. There are some other risks e.g fashion change for example in garment industry.
You have conducted a lot of training sessions for SMEs. Please share your experiences on what challenges you face to convince someone to go for self-employment.
Still trainees of Government ITIs, Polytechnics are searching jobs and rarely opt for self-owned business. Many new entrepreneurs are those who are interested for only government loans & subsidies.
The existing entrepreneurs fear to expand and to adopt new technology. They do not attend seminars and brain storming sessions to expand their knowledge base. There is an urgent need to change these things. If we can not create new entrepreneurs, creating new job opportunities as will a tough task.