MSME businesses are growing at an exponential rate in India. These
businesses are to raise funds developing products and services across
a range of sectors and the availability of these products are helping to
cater to the rising demands of the Indian population. Majority of the
population in India today have access to smartphones and as a result
of which they are able to access the variety of products online. This is
creating a tremendous amount of demand for the MSME to fulfill strategically.
The recent adoption of modern techniques of production are somewhat
helping the MSMEs to cater to this rising demand in the marketplace. All
these changes within the MSME and the startup ecosystem is possible
only when they have access to sufficient amount of capital to undergo
various changes within the organization.
The MSME loan scheme 2022 is one such way of availing financial help for the
MSME growth. Majority of the MSMEs that are registered with the Government
portals have availed financial help from financial institutions that are affiliated
with the Government. The money raised by the MSME are helping them to
restructure the organization and also hire high quality staff and skilled technician
for their day to day activities. Financial support also helps the MSMEs to adapt
to various ways of innovative marketing and branding in order to reach the target
set of audiences. Many a times, some of the newly established MSMEs are not
aware about the various Government schemes for MSME that have been set up
by the MSME Ministry. It is the need of the hour for the MSMEs and their promoters
to become aware about the various lending and loan options that are available
within and outside the ecosystem. Apart from the traditional way of availing financial support, many of the MSME operators are reaching out to venture capital funds.
And are securing themselves grants from these entities very actively. These private
sector investors have a support for the Government policies for MSME in India to
drive innovation within the sector and beyond. The MSMEs that are very new into
the game need to reach out to potential HNIs and UHNIs for securing funds for their operations.
For more information: https://smeventure.com/indian-msmes-focusing-on-elevating-their-esg-standards/
The MSME sector offers the most innovative platform for new business owners
to exchange ideas and build connections that potentially may lead to financial
backing for their own ventures. At the same time it is very pivotal for the
business operators to be keen on the type of product that they wish to sell
and be aware about the major problems that their product is trying to solve.
The following are some of the ways of the financial schemes for
MSMEs to come into play :
1.) Government funding schemes :
The MSME loan scheme 2022 was developed to improve the condition
of the startup ecosystem in India. Small Industries Development Bank
of India also offers business grade loans to the MSME sector. It is
important for the MSMEs to make themselves aware about the various
financial schemes that are already in place to help and support them
financially.
2.) Angel Investment :
Angel investors are the type of individuals with surplus amount of cash
who have a keen interest to invest in upcoming quality startups. Apart
from providing financial support, they are also focused on offering
mentorship and advice for the newcomers. Some of the well-known
entities from this segment are Angel List, Golden seeds, Investors circle
etc.
3.) Loans from Banks :
All the top banks offer funding for startups in India through various loan
programs. Leading banks like Bank of Baroda, HDFC, ICICI, Axis banks
have multiple options to avail collateral free business loans.
4.) Venture Capital :
The VCs invest in early stage businesses that have a potential for higher
growth. A VC firm may be appropriate for small scale businesses are
beyond the startup phase and already generating revenues.
5.) Collaborating with a business partner :
It is very helpful to find someone equally passionate about a similar
product that the market is in dire need off. It helps the growth of the
business substantially on all the aspects.
6.) Boostrapping :
Self- funding is one of the underrated ways to invest in a business. If the
rewards that are derived out of the business far outweighs the risk it is
always recommended to start a business with your own money.
7.) Business accelerators and incubators :
Early stage businesses must adopt the path of Incubator and
accelerator programs as a funding option. These kinds of programs are
responsible for assisting hundreds of startups every year.
8.) Fund raising via Contests :
A very unique way of raising capital for businesses is by participating in
various hackathons and similar contests to secure funding for the
venture. Some of the popular startup contests In India are NASSCOM’s
10000 startups, Microsoft BizSparks, Lets Ignite etc.
9.) Loans from NBFCs :
Availing Microfinance loans are the best option when someone doesn’t
qualify for a bank loan. Those that do not have access to conventional
banking can avail these services.
10.) Crowdfunding :
One of the recent ways of securing funding for a business is by
crowdfunding the idea or project i.e. to raise funds from the general
public. Well known crowdfunding website includes the likes of
Kickstarter, Indiegogo and Fundable.
Do watch: https://www.youtube.com/shorts/twldv9rGPGo
There are many more ways to secure funding for startups in India by
Government and other entities. Funding and to raise funds for startups
India is done through many online as well as physical portals. The
Government has been continually helping the MSME sector by establishing
newer schemes for their welfare such as the Startup India Scheme.
The Government schemes for MSME have steadily been on the rise on
the basis of the development that this sector is currently showing.
Government policies for MSME in India is constantly changing with the
rising demands of the sector and the impact it is having on the Indian
economy.