When I talk of a country with a large population such as India or China, it is important to question ourselves in what activities should the population engage themselves so that the country can grow and develop as a whole. It has been observed that most countries that have a vast population engage in manufacturing and service industry. The consumption needs of the people are satisfied by the manufacturing sector and to some extent by the imports, whereas the flow of money is regulated by the service sector. A country cannot survive by engaging its people in just one of these activities.
Engaging people in the service industry is a lot easy for any government than engaging them in manufacturing related processes. This is primarily because in the manufacturing of any product or commodity four essential requirements are needed (land, labor, capital, entrepreneur) along with other requirements. To add to this, businesses involve in taking a lot of risk and people are generally not willing to put themselves in any risky situations.
Keeping these points in mind the Indian government under Startup India, Make in India and Skill India initiatives aims to resolve the most common issues that most aspiring entrepreneurs and SMBs face today which is of guidance and financing. But the lack of awareness make SME’s take backseat in contribution to the development and are not able to enhance their presence in the market. The information about different schemes and plans initiated by the government can be availed easily through various digital mediums.
Here is the list of 5 most important schemes:
1) Credit Guarantee Fund Scheme for MSEs (CGMSE):
CGMSE is a collateral-free credit that the government provides to the micro and small enterprise (MSE) sector. Both the existing and new enterprises are eligible for this scheme.
2) Credit Link Capital Subsidy Scheme for Technology Upgradation:
Every type of entity — sole proprietorship, partnership, cooperative, private and public limited companies — are eligible for this scheme. Under this scheme, SMEs can avail a loan of up to Rs. 1 crore. It involves a subsidy rate of 15 percent, which is calculated on the purchase price of plant or machinery.
3) Mini tools room and training center scheme:
The government has decided to assist state governments to set up Mini Tool Room and Training Centres.
4) National Award scheme:
The ministry of MSME gives away National Awards annually to selected entrepreneurs and enterprises under this scheme.
5) Market Development Assistance Scheme for MSMEs:
The scheme offers to fund for the participation by manufacturing SMEs in international trade fairs/ exhibitions under MSME India stall. It also offers to fund the sector-specific market studies.
Help can only be provided if one asks or calls out for it. The Government is extending their support and encourages constructive measures, all you need to do is ask.
You may look for “The Legendary Series of 7 Hats”
Hat 1 – SMB/MSME Specific, Sprint 3 – Government Schemes and Grants for SMBs