SME Digital World

Category: SME

Exploring the Impact of India’s Evolving GCC Landscape on Fintech Innovation for SME Sector Growth

Exploring the Impact of India’s Evolving GCC Landscape on Fintech Innovation for SME Sector Growth

Through inventive strategies and cooperative endeavors, Global Capability Centers (GCCs) are playing a pivotal role in developing pioneering products and services aimed at fostering financial inclusivity.
Initially established to capitalize on India’s cost-effectiveness, GCCs have evolved into crucial hubs for driving innovation and development across various sectors. Leveraging India’s technological prowess and skilled workforce, these centers offer a spectrum of services, including tech research, finance, audit, and operational support for their parent organizations worldwide.
The SME sector has long grappled with limited access to credit. Fintech innovation, powered by advanced technologies like artificial intelligence (AI), machine learning (ML), blockchain, and big data analytics, holds the key to addressing this challenge. With access to a diverse talent pool comprising engineers, data scientists, and banking experts, GCCs are well-positioned to lead innovation in areas such as digital payments, lending, risk management, and customer engagement. This influx of talent not only benefits multinational corporations but also enriches the broader finance ecosystem on a global scale.
For instance, JP Morgan’s Bengaluru global service center is expanding its scope to develop digital transformation solutions for its global operations. The team in India has created Story, a platform facilitating commercial real estate management, rent processing, market analysis, and tenant screening for smaller multifamily owner-operator businesses.
GCC-driven advancements enable the swift delivery of customer-centric personalized solutions, streamline banking platforms, and transform payment and lending solutions. These digital innovations are particularly beneficial for small businesses, which often require timely access to capital to seize growth opportunities or address cash flow challenges.
Moreover, GCCs foster knowledge sharing and collaboration among diverse business units. NatWest’s India centers, for example, collaborate closely with UK teams on core engineering projects, driving digital transformation and enhancing accessibility to banking services for customers.
Additionally, GCCs and fintech companies in the BFSI sector collaborate in areas such as digital lending, payments, and risk monitoring to adapt to the evolving financial landscape. GCCs prioritize upskilling their talent in emerging tech areas to stay abreast of evolving technologies.
In conclusion, India’s GCCs are driving digital transformation and fostering financial inclusion through innovative strategies and collaborative efforts, shaping the fintech landscape to better serve the needs of SMEs and other stakeholders.

June 3, 2024
Why Sustainability Reporting Matters for SMEs

Small Business, Big Impact: Why Sustainability Reporting Matters for SMEs

A new guide from ACCA (the Association of Chartered Certified Accountants) recognizes the vital role Small and Medium-sized Enterprises (SMEs) play in global supply chains. Their guide, titled “Sustainability Reporting – SME Guide,” empowers SMEs to create the sustainability reports increasingly demanded by regulators and stakeholders.
Sundeep Jakhar, head of public affairs for ACCA in India, emphasizes the importance of sustainability practices for Indian SMEs, which make up a significant portion of the Indian business landscape. He acknowledges their unique challenges, such as limited resources, but highlights the numerous benefits sustainability reporting can unlock, including access to new markets and better financing opportunities. This translates to improved competitiveness on a global scale for Indian SMEs, helping them align with international standards.
Report co-author Sharon Machado, head of sustainable business at ACCA, explains that creating and using sustainability information empowers SMEs, their advisors, and stakeholders to identify opportunities, manage risks, and ultimately strengthen their financial position. This translates to easier investment attraction, preferential terms with suppliers, and a competitive edge in the talent pool.
As the demand for sustainability information rises, all organizations, including SMEs (which comprise 90% of all organizations globally), need to be prepared to provide information on their approach to managing sustainability risks and opportunities. This information is crucial for regulators, investors, and other stakeholders throughout the value chain.
The ACCA guide highlights the competitive advantage SMEs can gain by communicating and using sustainability information. Report co-author Aaron Saw, head of corporate reporting insights at ACCA, acknowledges the challenges SMEs might face, especially financially. However, he emphasizes that evidence shows the effort is worthwhile. The ACCA encourages all SMEs to take small but crucial first steps towards creating sustainability reports, paving the way for a stronger and more competitive business.

You can read here to learn more: https://smefutures.com/sustainability-related-information-enables-better-business-for-smes-says-new-guide-from-acca/

May 30, 2024
Recordent Announces 100+ Meets to Connect 10,000 Indian SMEs Nationwide

Recordent Announces 100+ Meets to Connect 10,000 Indian SMEs Nationwide

HYDERABAD: Fintech firm Recordent announced on Thursday its plan to host over 100 Knowledge Meets, engaging with more than 10,000 SMEs across India. These events aim to analyze and streamline payment collection practices for the SME sector, addressing challenges in cash flow management and credit awareness. The initiative will kick off with inaugural events in Mumbai, Hyderabad, and Delhi.
Recordent highlighted that over 90% of SMEs face significant payment delays, affecting business operations and continuity. By collaborating with industry associations, startups, enterprise unions, and SME executives, Recordent seeks to tackle collection issues within the industry. Discussions will focus on adopting new industry practices to improve accounts receivable collections and manage credit exposure and risk using payment data.
These events will also serve as valuable networking platforms, allowing participants to gain insights and build connections within the industry.
Winny Patro, CEO of Recordent, stated, “Over 90% of Indian SMEs face cash flow challenges due to extending credit to buyers, hindering growth and increasing failure rates. Our SME outreach strategically addresses this challenge head-on. By providing a comprehensive suite of solutions, from checking buyers’ credit history to managing defaults, we are committed to empowering SMEs to navigate cash flow challenges and seize growth opportunities.”
Recordent offers a comprehensive suite of accounts receivable collections and credit risk management solutions. This includes payment reminder automation, invoice management, CIBIL-like credit registry reporting of defaults, cautionary and legal notices for recovery, collections analytics for informed decision-making, and credit bureau reports for credit assessment.

May 30, 2024
CRISIL SME Tracker: Higher demand, PLI to propel electronics MSMEs in FY25

CRISIL SME Tracker: Higher demand, PLI to propel electronics MSMEs in FY25

Various factors contributed to the growth, such as increasing penetration of internet and 5G services, rising consumer income, shorter replacement cycles, easier payment terms
Domestic consumption of electronics items is estimated to have grown 13-15 per cent to Rs 14-15 trillion in the financial year ended March 31, 2024 (FY24), with mobile phones and consumer and industrial electronics accounting for 50-55 per cent of the pie.
Various factors contributed to the growth, such as increasing penetration of internet and 5G services, rising consumer income, shorter replacement cycles, easier payment terms, and developments in the auto, electric vehicle, and power segments.
In FY25, overall electronics consumption growth is expected to moderate to 10-12 per cent as inflation marginally affects sales of mobile phones and consumer durables, which account for 40 per cent of electronics consumption in the country.
Electronics production, however, is expected to grow 15-20 per cent, largely owing to the production-linked incentive scheme (PLI) that is encouraging manufacturing of mobile phones, white goods, information technology hardware, and solar photovoltaic cells and modules.
That augurs well for the micro, small and medium enterprises (MSMEs) that produce electronics components and assemble consumer and industrial electronics products.
The MSME units account for 25-35 per cent of the industry’s consumption of components. These units are expected to log a revenue growth of 11-13 per cent year-on-year (Y-o-Y) in FY25, driven by mobile phones, consumer and industrial electronics, computer hardware, and strategic electronics.
As for margins, following a range-bound performance in FY24, the MSMEs are expected to experience a slight contraction of up to 30 basis points in FY25, primarily because of commodity prices.

May 29, 2024
Public Procurement: Government Purchase of MSME Goods Reaches Record High in FY24

Government Purchase of MSME Goods Reaches Record High in FY24

In the financial year 2023-24, central public sector enterprises (CPSEs) set a new record in the procurement of goods and services from micro and small enterprises (MSEs). According to the MSME Ministry’s public procurement monitoring portal, MSME Sambandh, CPSEs procured goods worth Rs 75,253 crore from MSEs in FY24, marking a 16.2 percent increase from Rs 64,721 crore in FY23.
Under the procurement policy, CPSEs are required to source at least 25 percent of their total procurement value from MSEs each year, with specific allocations: 4 percent from MSEs owned by SC/ST entrepreneurs and 3 percent from those owned by women entrepreneurs.
The updated data on the portal, as of April 11, showed FY24 procurement at Rs 58,744 crore, indicating a significant update in the government’s figures. Earlier reports had shown a decline based on the available data at that time.
In FY24, purchases from MSEs accounted for 35.6 percent of the total procurement, benefiting 2.18 lakh enterprises, compared to 37.1 percent in FY23, which involved 2.36 lakh enterprises.
Procurement from SC/ST and women entrepreneurs amounted to Rs 1,406 crore (0.67 percent) and Rs 2,609 crore (1.24 percent) respectively, within the 25 percent minimum procurement share from MSEs. Comparatively, FY23 saw slightly higher procurement from SC/ST entrepreneurs at Rs 1,546 crore but lower from women-led MSEs at Rs 2,318 crore.
Additionally, the Government eMarketplace (GeM), the commerce ministry’s e-commerce portal, reported over Rs 4 lakh crore in gross merchandise value (GMV) for FY24, doubling the Rs 2 lakh crore GMV of FY23. The order volume for FY24 was 62.79 lakh.
The success of GeM has drawn interest from other countries in Asia and Africa, looking to emulate the model. As reported earlier, GeM is the third-largest public procurement platform globally, following South Korea’s KONEPS and Singapore’s GeBIZ.

May 28, 2024
Red Sea Crisis: Government Must Support MSME Exporters

Red Sea Crisis: Government Must Support MSME Exporters

The deteriorating security situation in the Red Sea has led to increased insurance rates and longer travel times for exporters.
Logistics costs significantly impact the country’s manufacturing sector, export competitiveness, and global positioning. The Red Sea route, known for being shorter and faster, was the preferred choice for most shipping companies. Ships transporting goods from major Indian ports like Mumbai and JNPT used the Suez Canal to enter the Mediterranean Sea and reach various European ports based on their destinations.
India heavily relied on this route for trade and energy imports. However, due to disruptions, exporters now have to diversify their trade routes. The worsening security in the Red Sea has resulted in higher insurance rates and longer travel times for exporters. Major shipping companies like Equinor and Maersk have increased their costs, severely impacting Indian companies. Disruptions in freight services and nearly a 50 percent increase in air freight charges have affected the export of perishable goods like vegetables, flowers, fruits, and eggs to the UK, the US, and other parts of the world.
Exporters are anxious about the significant increase in freight costs, which will inevitably impact India’s exports. In the 2023-24 financial year, Indian exports saw substantial growth in both volume and value, totaling nearly $450 billion, with MSMEs playing a crucial role.
The Indian research and information systems estimate that higher container shipping rates and delayed shipments due to route changes could lead to a significant drop in Indian exports in the coming year. Global supply chains have suffered as vessels now take longer routes for exports and imports. The immediate effects are increased freight costs, with small and medium industries in India being the major victims.
The global credit crisis means the world may not be able to absorb this hit. Government agencies need to support the MSME sector to maintain growth and achieve a $5 trillion economy. New markets for perishable goods should be sourced in Asian and Far Eastern regions.
Controlling export container pricing with an incentive mechanism could help mitigate the impact. Since seasonal perishable goods are at the highest risk, an urgent solution from government economic experts is needed.

May 27, 2024
NSE SME Indian Emulsifiers Makes a Blockbuster Debut

NSE SME Indian Emulsifiers Makes a Blockbuster Debut

Shares of Indian Emulsifiers surged to Rs 450 on the NSE, reflecting a remarkable premium of 240.91% over the issue price of Rs 132. The stock was listed at Rs 430, marking a 225.76% premium compared to its initial public offer (IPO) price. Currently, the stock is trading 4.65% higher than its listing price.
The trading volume was substantial, with the counter reaching a high of Rs 451.50 and a low of Rs 410, and approximately 18.21 lakh shares of the company exchanging hands.
Indian Emulsifiers’ IPO was a massive success, subscribed 306.66 times. The bidding for the issue was open from 13 May 2024 to 16 May 2024, with a price band set at Rs 125-132 per share. The IPO consisted of a fresh issue of 32,11,000 shares. The company plans to use the net proceeds for purchasing plant machinery, civil work, installation costs, funding working capital requirements, and general corporate purposes.
Prior to the IPO, Indian Emulsifiers raised Rs 12.01 crore on 10 May 2024, with the board allotting 9.10 lakh shares at Rs 132 per share to five anchor investors.
Indian Emulsifiers specializes in manufacturing and supplying specialty chemicals such as Esters, Amphoterics, Phosphate Esters, Imidazolines, Wax Emulsions, SMO & PIBSA Emulsifiers. As of 31 December 2023, the company employed 34 full-time staff.
For the period ending 31 December 2023, the company reported revenue from operations of Rs 48.67 crore and a net profit of Rs 6.75 crore.

May 23, 2024
Impact of Bribery on SMEs: Standing Against Corruption May Cost Business Opportunities, Survey Reveals

Impact of Bribery on SMEs: Standing Against Corruption May Cost Business Opportunities, Survey Reveals

A global survey by the UK-based Association of Chartered Certified Accountants (ACCA) highlights the impact of bribery and corruption on SMEs worldwide. It found that 59% of SMEs and their advisers believe that resisting bribery and corruption could lead to lost business opportunities.
While strong anti-bribery policies might result in lost trade, many respondents acknowledged that these policies are ethically correct and could benefit businesses. According to the survey, 77% of respondents thought such policies would boost customer confidence, and 68% believed they would increase the chances of trading with larger businesses or public bodies.
“Many very small businesses lack the bargaining power to refuse small bribes, forcing entrepreneurs to choose between paying the bribe or losing the business,” said Jason Piper, ACCA’s Head of Tax and Business Law. ACCA has over 247,000 members in 181 countries.
Unlike large companies, SMEs often lack structured reporting lines and management frameworks, relying heavily on personal relationships and daily interactions. This can make it difficult to recognize and address corruption issues until they become severe.
The survey also found that 49.8% of respondents believe bribery and corruption negatively impact the business environment, with 66% viewing it as a concern.
Despite high awareness and perceived effectiveness of anti-bribery legislation, compliance costs remain significant for SMEs, with 48% of respondents agreeing that local anti-bribery laws have added to their expenses.
The implications for SMEs involved in bribery can be severe. Unlike large multinationals, small businesses often lack financial buffers, and money spent on bribes is money diverted from profits and local economic support, stunting investment and growth.

May 21, 2024
ET Make in India SME Regional Summit’s Second Session to be Held in Lucknow

ET Make in India SME Regional Summit’s Second Session to be Held in Lucknow

On May 25, the ET Make in India SME Regional Summit will reach its second city for this year’s edition. Lucknow, renowned for its nawabi heritage and famous handicrafts, will host small businesses, industry leaders, and entrepreneurs in an engaging summit organized by Economictimes.com.
According to the Udyam portal, Lucknow boasts 141,648 MSMEs, with 136,895 micro industries, 4,347 small enterprises, and 406 medium enterprises.
With a rich history in textiles and handicrafts dating back to the 16th century, Lucknow has become a hub for handcrafted textiles and leather goods. The city is home to numerous businesses involved in the export of apparel, textiles, and leather.
A report by CBRE South Asia highlighted that Uttar Pradesh is among the top three states contributing significantly to the Indian MSME sector, accounting for 9%. In this context, the ET Make in India SME Regional Summit will feature panel discussions and fireside chats addressing the challenges faced by the state’s labor-intensive MSMEs and craftspersons, and exploring ways to elevate their businesses to global prominence. The event will also provide a networking platform for enterprises, entrepreneurs, and industry leaders in the city and the state.
The ET Make in India SME Regional Summit series is held across the country to bring together local MSMEs, policymakers, enablers, and industry stakeholders. These summits aim to discover opportunities, address challenges, and promote knowledge-sharing and networking to drive the next phase of growth for Indian MSMEs. This year’s theme is “Empowering MSMEs: Driving India’s Century of Sustainable Growth,” aiming to champion and fortify Indian MSMEs. Each summit will feature panel discussions, masterclasses, and demonstrations of MSME solutions.
This is the second edition of the ET Make in India Regional Summit series. Last year’s inaugural edition covered Ahmedabad, Chennai, and Hyderabad, with a stellar turnout. The previous edition’s theme focused on enabling future-ready MSMEs to power the nation’s India@100 dream.
The purpose of these regional summits is to increase awareness, promote networking, and support industry-specific learning. These events aim to recognize the efforts and accomplishments of MSMEs in their respective areas, and assist them in discovering opportunities and strategies to become globally competitive and future-prepared.
The summits are hosted by Economictimes.com in collaboration with Adobe as the Associate Partner.

originally posted on: https://economictimes.indiatimes.com/tech/technology/how-to-choose-the-best-ecommerce-platform-for-your-online-store/articleshow/110213245.cms

May 20, 2024
TGIF Agribusiness Makes Strong Debut on BSE SME Platform with 61% Premium

TGIF Agribusiness Makes Strong Debut on BSE SME Platform with 61% Premium

TGIF Agribusiness made its debut on the BSE SME platform on Wednesday with shares opening at Rs 150, representing a premium of 61% over the issue price of Rs 93 per share.
Prior to its listing, the company’s shares were trading at a premium of Rs 30 in the unlisted market.
The Initial Public Offering (IPO) consisted of a fresh equity issue of 6.87 lakh shares and was oversubscribed 37 times due to strong interest from investors.
The proceeds from the IPO will be utilized for purchasing agricultural equipment and irrigation systems, meeting working capital requirements, and for general corporate purposes.
TGIF Agribusiness primarily operates as a horticulture company engaged in open farming of fruits and vegetables across more than 110 acres of farmland in Ajari, Kasindra, and Kojra villages.
Pomegranate farming constitutes over 95% of the company’s revenue, supplemented by cultivation of dragon fruits, Sagwan trees, lemon, watermelon, and chilly in recent years.
The company employs various farming techniques to ensure high-quality produce, such as fruit thinning to enhance crop size and quality, vegetative growth practices, fruit protection measures, and soil moisture management.
The agriculture sector in India, boasting the world’s second-largest agricultural land, plays a pivotal role in employing nearly half of the country’s population, making farmers essential contributors to our sustenance.

May 16, 2024