4 Sep 2019, 10:06 — 5 min read
The first article of the series based on the 2019 Expert Committee Report on MSMEs highlighted excerpts from the report, MSME definition and benefits of MSME registration. The second article focused on different registrations to avail of various schemes.
This article focuses on the marketing challenges for MSMEs and government initiatives for the same.
Marketing is a strategic tool for business development and is critical for the growth and survival of MSMEs. MSMEs also face challenges in terms of weak forward and backward linkages for sourcing raw materials at effective price and selling the produced goods in the market. These constraints not only make it difficult for MSMEs to reach global markets but also limit their performance in the increasingly open and competitive domestic markets.
Some of the key challenges encountered by MSMEs in implementing marketing strategies are mentioned below:
International Cooperation Scheme - Visit of MSME delegations to other countries in international exhibitions/ trade fairs, conferences/ summits/workshops, etc., for exploring new areas of technology infusion/up gradation, joint ventures, improving market of MSMEs products, etc. is supported by the Government
Marketing Assistance Scheme - The maximum net budgetary support for participating in an international exhibition/trade fairs
Procurement and Marketing Support Scheme - To encourage MSMEs to develop domestic markets and promotion of new market access initiatives
Online procurement of common use Goods & Services required by various Government Departments / Organisations (GEMS) - Mandatory public sector procurement from MSMEs as well as provisioning of marketing and trade promotion services to SMEs through direct service delivery and cost subsidy for buyer-seller meets, participation in trade events, provision of market intelligence, trade finance, etc.
Marketing is a strategic tool for business development and is critical for the growth and survival of MSMEs. MSMEs also face challenges in terms of weak forward and backward linkages for sourcing raw materials at effective price and selling the produced goods in the market.
Recommendations of the Committee
GlobalLinker supports SMEs in digitising their business and in making the most of their GlobalLinker account for their business growth. These services include creating a professional digital presence, digitising internal processes, business risk management, business revenue growth and business expense management.
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Posted byPrashant S Shetty
Catalyst for corporates seeking financial restructuring and fund raising
5 Jul 2020, 11:00