MSMEs urged to develop products for defence, infra sectors

Haribhai Parthibhai Chaudhary, Minister of State for Micro, Small and Medium Enterprises urged MSMEs to develop products and components for defence and infrastructure sectors.

“We have proved our strength in digital technology and space technology. We need to now equip ourselves in the defence and infrastructure space as well,” the minister said.

He was speaking at the 17th edition of the International Machine Tools and Industrial Trade Fair – Intec 2017, a flagship event organised by Codissia Intec Technology Centre.

“The government has allowed FDI in defence, railways and housing, but that does not mean we can be laidback. Entrepreneurs should gear up to make products including AK47 rifles, bullet proof jackets and so on to make the ‘Make in India’ initiative a total success. Instead of sourcing such products from elsewhere, they can enter into tie-up with foreign investors and manufacture the products here,” the minister suggested.

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Haryana Announces Projects For MSMEs Promotion

Haryana Industries and Commerce Minister, Vipul Goel announced various projects for the promotion of micro, small and medium enterprises (MSMEs) in the state. These included four new quality marking and testing centre for mechanical electrical and plastic products in Faridabad, for mechanical products in Bahadurgarh and Hisar and for plywood, mechanical products and tool and dyes in Jagadhari at a cost of Rs 58 crore. 

The minister also announced setting up of 25 mini clusters at Barwala, Faridabad, Sonipat, Panipat, Kaithal, Gurugram, Rohtak, Jhajjar and Ambala at a cost of Rs 110 crore. Goel made these announcements on behalf of Chief Minister, while addressing valedictory session of MSMEs Sammelan at Panchkula. 

Goel said that the State Government has identified four clusters in Karnal and Faridabad districts under the Micro and Small Cluster Development Scheme of Government of India and seven clusters in districts of Karnal, Panchkula, Sonipat and Faridabad under State Small Cluster Scheme. He also announced that an Export Exhibition Centre would be set up over 2 acres in Sector 28 / 29, Panipat at a cost of Rs 38 crore. 

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Digitalization Support SMEs In Machine Tool Industry

Small and medium enterprises (SMEs) form the backbone of the Indian manufacturing industry. They contribute 38 percent to the nation’s GDP, 37 percent to its manufacturing output and 40 percent to its exports. Moreover, the segment is always buzzing with innovations. Companies are constantly transforming themselves and reinventing business models to stay one step ahead. 

As the demand for high-tech and efficient machines in the industry rises, digitalisation of the production process becomes the key to higher productivity, flexibility, and efficiency, as well as simple operability and the possibility of permanent optimisation. While traditional manufacturers use various tools for milling, turning, grinding, and other applications, digitalisation is radically and sustainably changing the production environment and becoming an indispensable part of business. Very soon, it will be the new normal.

India’s machine tools industry is expected to play a key role in accelerating this manufacturing growth as they are a strategic pillar of the manufacturing industry. Machine tools industry are pivotal to the augmentation of various discrete manufacturing segments such as automobiles, defence, railways, plastic machinery, electronics, white goods etc. It will have a huge role to play in the Government’s flagship programme Make in India. 

The Indian machine tool industry comprises of about 25 percent large players and the remaining 75 percent is dominated by small manufacturers and manufacturing companies. 

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Challenges Facing MSMEs In Nigeria

IT is the responsibility of government to provide employment and security for the people, among other things. However, since government cannot provide full employment for the people, what it does is to provide the enabling environment for non-state actors to bridge the gap. These non-state actors include small and medium scale enterprises, among others.

Small and medium scale enterprises are the “engine of growth and catalyst for socio-economic transformation of any country, especially in a developing country like Nigeria.

They are a veritable vehicle for the achievement of national macroeconomic objectives in terms of employment generation at low investment cost and enhancement of apprenticeship training.

But running small and medium scale enterprises in Nigeria is a most difficult thing because of the harsh economic environment. It is as a result of the harsh economic environment that many Small and Medium Scale Enterprises collapse or are operating on the margins. 

Small and medium enterprises

The increasing demand for consumer products has created a large market for small and medium enterprises in the country. Small and Medium Enterprises have contributed immensely to the growth of Nigerian economy, adding that the sector also contributed to the national objective of creating employment opportunities, training entrepreneurs, and generating income and providing a source of livelihoods for the majority of low-income households in the country.

However, a major challenge facing small and medium enterprises operators is lack of finance. Lack of capital has been identified as the most serious problems of establishing and running small and medium enterprise as other problems can be solved with adequate capital. 

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Govt taking steps to develop MSMEs

State Commissioner of Industries, Textile and Handicraft, Tahang Taggu said that the state government has taken steps for development of Micro, Small and Medium Enterprises (MSME) even as it has taken up schemes for promotion of handloom and handicraft activities.

While opening a month-long entrepreneurship programme at Oyan village in East Siang district, Taggu informed that the government, following instructions from the concerned union minister, forwarded scheme worth Rs 35 crore for sericulture development, which is waiting due recommendation of the Central Silk Board.

Taggu encouraged the participants to take up entrepreneurial activities to enhance rural economy. “The government is all set to grant fund and other feedback to promote handloom and handicraft activities”, he said.

Speaking on the weaving sector, the Commissioner said that the government was also planning to upgrade handloom weaving to power loom. He informed that out of 88 weaving units set up in the state, hardly 30 to 35 units are functioning, while the rest are lying defunct due to fund crunch.

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AmBank Expects 15% Growth In SME Loans

AmBank(M) Bhd is expecting a 15% growth from its small and medium-enterprise (SME) loan segment for the financial year 2017 (FY17), driven by the banking group’s Top Four Strategy that it embarked on last year.

Group chief executive officer (CEO) Datuk Sulaiman Mohd Tahir said growth in the SME loan segment would be supported by the bank’s focus on SMEs and mid-corporations, as well as a gross domestic product growth projection of 4.5% this year.

“In terms of loan growth, we foresee this to be around 6% to 7% for FY17, given the infrastructure projects that have been rolled out and the recovery in the economy. “This is clearly a jump based on our Top Four Strategy initiative that we embarked on,” he told reporters after witnessing the signing ceremony between AmBank and Credit Guarantee Corp Malaysia Bhd (CGC) to continue the SME Portfolio Guarantee Scheme.

The scheme is a partnership between the parties to extend an additional RM200mil financing for eligible SME businesses. Last November, the sixth-largest lender in the country said it expected total loan growth of 5% for its financial year ending March 31, 2017 and it was positive on loan growth for the SME space since it experienced negative loan growth for the segment in 2015. Sulaiman said overall net interest margin (NIM) for the bank should be better since the focus has also been on SMEs and retail banking.

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Gujarat sees highest SME listings on exchanges in 2016

Gujarat-based Small and Medium Enterprises (SMEs) are increasingly banking on primary market to raise funds by listing their shares on SME exchanges. The state has not only witnessed the highest number of listings but also remained ahead of other states in terms of capital raised by local small companies.

Out of total 66 firms that were listed on SME exchanges operated by the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) in 2016, 25 were from Gujarat followed by Maharashtra (11), Rajasthan (7) and West Bengal (4). Data compiled by Pantomath Capital Advisors shows Gujarati SMEs cumulatively mopped up Rs 234 crore-the highest among all statesby launching their initial public offers (IPOs) last year. Small firms from Maharashtra, Rajasthan, and West Bengal collected Rs. 99 crore, Rs. 42 crore and Rs. 30 crore respectively .

Some of the companies that hit primary market include India Green Reality Ltd, Riddhi Steel and Tube Ltd, Shashijit Infraprojects Ltd, Bindal Exports Ltd, Radhika Jeweltech Ltd, Sprayking Agro Equipment Ltd and Advance Syntex Ltd to name a few.

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SA SMEs Expect 2017 To Be A Good Year

More than three-quarters of South African small and medium enterprises (SME) owners believe that 2017 will yield greater growth for their businesses than 2016.

This is according to the fourth quarter 2016 Business Partners Limited SME Index, which surveyed the attitude and confidence levels of South African SME owners across various sectors of the economy.

The survey found 77 per cent of South African small business owners expect 2017 to be a good year, while for the first time in about two years all seven of the survey’s broader confidence indicators reported improvements compared to both the previous quarter and the same period in 2015.

In 2016, the private sector, and particularly the SME sector, experienced how political uncertainty and noise can negatively impact an already struggling economy, said Ben Bierman, managing director of Business Partners.

Political uncertainty however stabilised somewhat towards the end of 2016 and the country narrowly escaped a ratings downgrade. This, coupled with various positive economic prospects in the current environment – such as good rainfall and improved commodity prices – has improved SMEs’ confidence for business growth in the year ahead. 

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