Tag: Small Businesses

Business

Challenges and opportunities faced by people in lending money to small businesses

Jun 19, 2024 by Sujata Muguda 0 Comments #ITR, #KYC, #RBI, #Sachin Financial Services Private Limited, #Sachin Vashishth, #Small Businesses

According to Sachin Vashishth, Founder of Loan Expert, Sachin Financial Services Private Limited
Small businesses play a crucial role in the economy by bringing new ideas, jobs, and energy to communities. Despite their importance, many small business owners face big hurdles when they need loans. These obstacles can hold back their growth and ability to keep going, so it’s important to know what’s causing them. One major issue is that banks and other lenders have very strict rules for giving out loans. These rules can be tough for small businesses to meet, making it hard for them to get the financial help they need. To qualify for loans, small businesses usually need a strong credit record, valuable assets to secure the loan, and a history of making profits. Meeting these conditions can be very challenging for small businesses, especially new ones. Startups often don’t have a long credit history, which makes them seem riskier to lenders. Also, the need for collateral can be a big problem because many small business owners don’t have enough valuable assets to offer as security for a loan.

Sachin Vashishth

Furthermore, not having a strong credit history can greatly restrict a small business’s chances of getting financial support. New businesses or those that mainly deal in cash transactions might not have a credit score that meets lenders’ requirements. This absence of credit history sets up a tough cycle: without a loan, it’s hard for a business to expand and establish a credit record, but without a credit record, getting a loan becomes almost unattainable. In the Covid19 scenario, RBI/ Govt itself gave remedy to all borrowers, But the opposite to if there is any loan bouncing or default in payment of a loan of that particular time bank takes it offensive and doesn’t give relief to new applications while sanctioning of loan. This issue is especially common among businesses owned by minorities, who have historically faced barriers in building credit. Another major obstacle is the complicated and sometimes unclear process of applying for a loan. The amount of paperwork and documents needed can be a lot for small business owners who are already busy running their businesses every day. They often have to provide detailed business plans, financial forecasts, tax records, and personal financial statements, which can be quite challenging to put together. Moreover, the lengthy process of applying for a loan can discourage entrepreneurs who are juggling many responsibilities from seeking traditional funding sources.

Another factor that discourages small business owners is the expensive nature of borrowing. Even if loans are an option, they frequently carry steep interest rates and fees, making them less appealing or even difficult to handle for small business owners. Although all documentation like KYC, ITR, and banking transactions are good as per banking standards sometimes bank officials refuse to give loans to some needy person stating negative profile of their business, location, cast, political and legal references. This is particularly the case for those who are unable to meet the requirements for loans from mainstream banks and have to seek assistance from alternative lenders. These alternative financial institutions, although easier to approach, typically impose higher rates to compensate for the perceived greater risk of lending to small businesses. Bank requires a 3-year ITR with a balance sheet that is not available to small business owners. Bank requires a current account and all credit transactions in that…that is not possible with small businessman because of their cash dealings. Moreover, economic unpredictability and market circumstances have a substantial impact. In times of economic decline or instability, lenders tend to be more cautious, making their lending requirements stricter and decreasing the credit accessible to small businesses. The recent COVID-19 pandemic clearly illustrates how external factors can significantly affect the availability of financing, with many small businesses facing challenges in obtaining the necessary capital to endure lockdowns and decreased consumer expenditure.

Although small businesses encounter various difficulties in obtaining loans, recognizing these barriers is the initial move toward establishing a more encouraging financial environment. By tackling the stringent lending requirements, absence of credit history, intricate application procedures, expensive borrowing expenses, economic instabilities, and regulatory challenges, stakeholders can contribute to guaranteeing that small businesses have the financial support required to prosper.

Business

WIN X AAZOL panel discussion: On bolstering home-grown brands, small businesses and women entrepreneurs paving way for thoughtful leadership

Dec 9, 2021 by Gouri Achary 0 Comments #Amrita Chowdhury, #Apurva Purohit, #home-grown brands, #Small Businesses, #WIN X AAZOL, #women entrepreneurs

WIN took forward the conversation on bolstering home-grown brands, small businesses, and women entrepreneurs paving way for thought leadership, in collaboration with Aazol Ventures Pvt. Ltd., presenting an exceptional panel discussion with some of India’s renowned female changemakers and trailblazers.

An in-depth, live discussion took place across platforms, a panel comprising of Harpreet Suri – renowned mom-blogger and influencer, Mrs. India mentor; in addition to Apurva Purohit – leading Businesswoman, author, Founder: Aazol Ventures Pvt. Ltd., – Amrita Chowdhury – a business strategist, engineer & innovator; Meghna Ghai Puri – Educationalist, President of Whistling Woods Organization; Mansi Zaveri – Actor, Podcaster, Founder of Kids Stop Press; Kanisha Malhotra – Entrepreneur, Actor, Influencer and Filmmaker; and Stuti Jalan – Founder of Women Inspiring Network. The discussion was aimed at taking forward the conversation on the growing prominence of home-grown brands. The live session was cross-streamed on Thoughtful Leadership and Entrepreneurship with Aazol, which has garnered more than 15,300 views across platforms.

Leveraging the influence of keynote speakers such as Kanisha Malhotra with over 3.7mn followers, Mansi Zaveri with 190K followers, Whistling Woods with 157K followers, and Amrita Chowdhary with 22K followers, the session effectively engaged their followers and boosted awareness amongst thought leaders and a younger demographic.

Apurva Purohit, founder of Aazol stated, “I think the pandemic resulted in a lot of inequality in the system between the haves and have nots, between rural and urban, between educated and non-educated, between men and women. So, I think any person who lives in fairness. Has to really reflect that what can I do? And we have been so blessed in the resources that we have got and, in the experience, we’ve got, the education we’ve got. It is our job. It is our job to create impact, how do we create impact? Whether it is for one person or whether it is for a hundred women or a million women. I think our company came in at that moment where we realize that rural India was stressed. So, we have tied up with self-help groups to buy some incredible food products that they are making all over rural Maharashtra and bring it to urban consumers. From the urban consumer end, I think they need that the pandemic sort of hit upon was a need for more healthy living, mindful living, eating local, and again whatever is happening in climate change. One of the big messages ah the universe is throwing at all of us is how do we live a more sustainable life and local cuisine which is healthier, more sustainable in terms of farming, and also is fulfilling the inequality that that that is existing by ensuring that income goes to rural self-help groups. I think that was really the thought that ah the vision of Azul was born with.”

Women are great agents of change, especially in leadership positions. They lead with compassion, an unwavering sense of intuition, and meticulous organization. They bring far-reaching benefits of diversity and gender parity in leadership and decision-making environments.

The default gender of leadership is male. Women entrepreneurs in India often do not want to label themselves as ‘women leaders’ but they are the need of the hour. We need to establish women leadership, we need to show that we are better leaders, we need others to know of our presence. We do not need to compete but we need to show that, if she can, then so can I. Collaborate to help each of us to grow. We need to end the notion that women are against women when in reality women are more than happy to help each other. Women entrepreneurs in the world share the same experience when it comes to their skills. Women’s entrepreneurship and leadership skills are always questioned and the only way out of this is by joining hands and walking together.

Both the discussions were essentially conducted, in an effort to celebrate home-grown brands, small business and business owners, and the very spirit and essence of female entrepreneurship, and the future of enterprising, aspiring women looking to take the entrepreneurial plunge. The symposiums aimed to give some refreshing new outlooks and stances with respect to how today’s leading changemakers view the electrifying and absolutely empowering wave of female entrepreneurship across the country. The sessions also shed light on matters, such as key motivators for small business owners, bringing back cultural nostalgia with domestic brands, contributing factors to promising growth in the number of female entrepreneurs, the essence of women entrepreneurship in the society, valuable insights for individuals looking to embark on the journey of entrepreneurship, etc. Each panelist brought forth a unique perspective to the table.

Amrita Chowdhury talked about how progress does not happen by being balanced. As women’s expectations of us are far harsher, we are expected to balance everything. It is okay to accept a little imbalance in life. Accept you need to be unbalanced in a few aspects of your life. All you need to show is impact, and impact is the product of growth, so demand impact.

Kanisha Malhotra shared her experience of building a brand “As an influencer, earlier, I used to just concentrate on my content. But since the pandemic, I have also come up with ideas for my own business and everything. So social media in a way has been a really big support for all of us. Especially the small businesses and entrepreneurs because I didn’t have a website to start with. So, I started making content, I started putting things on my Instagram handle or Facebook handle. So that’s where I started getting orders. So now also Facebook so many groups which you know really help you grow as an entrepreneur.”

Entrepreneur, educationalist and director, Meghna Ghai Puri shared about her journey, saying that, “I think believing in yourself is so important. I think a lot of women do not believe in their own potential. It may seem so difficult to actually put into action. But, please believe in yourself, have the courage to face ups and downs.”

Renowned mom blogger, content creator, and Mrs. India mentor, Harpreet Suri, stated that “I come from a very conservative family. I never thought that I would be able to do something worthwhile in life. However, I changed the game, and chose to become the heroine of my own life.”

Sharing an interesting story from her life, Mansi Zaveri told mothers to feel guilty about their choices, “So, you know one day, my husband and I were putting the kids to bed. It’s a ritual that we never let go of. And we just asked both my girls so what do you want to do when you grow up? Just as bed time conversation and they said we want to run Kidstoppress. And my husband said nobody wants to do what daddy is doing. They like no, you know your job is very boring and we want to run. And trust me, all the guilt that I pent up over all of the years, the days that I am feeling like I am the worst mom, just flew into thin air. I just think that I can say, dude, I have, I am building a legacy business, right? So, it’s, it’s these small joys, right?”

Stuti Jalan, the founder of Women Inspiring Network, stated that “The role of women entrepreneurs in the nation’s economic development is inevitable. Women are willingly taking up business and contributing to the nation’s growth. Their role needs to be increasingly recognized and wholehearted steps need to be taken to promote women entrepreneurship.”

Business World

Status Group International Announces Critical CME Services

Mar 3, 2021 by Neel Achary 0 Comments #Allan Goldner, #CEO at Status Group International's, #Small Businesses, #Status Group International

The Post COVID Boom is coming, and Small Businesses Impacted by COVID-19 must be ready. Now is the perfect time to re-strategize, re-build, review, and re-focus your business to maximize the opportunities ahead for international business development.

lslip Terrace, NY:  Today, Status Group International’s (SGIC) announces the full availability of essential business services for small businesses preparing for growth.

“International small business and franchise brand development, Fractional BOD, CEO, COO placement, Feasibility Studies, Client Advocacy, and Mediation,” said Allan Goldner, CEO at Status Group International’s (SGIC).

Companies worldwide have already benefited by deploying these services and have stated that this niche is the answer to rebuilding. When looking to make a global impact but sorely impacted by COVID-19, these services are essential to every small business owner.

Driven by client feedback, Status Group International’s (SGIC) commitment to offset client small business cuts and losses by providing these enhanced services has proven to be what is sorely needed at this time and in preparation for the coming post-COVID-19 resurgence. Review the services now available at www.statusgroupinternational.com.

Founded in 2007, Status Group International’s (SGIC) is a small business and startup leader for in-country business development and private capital facilitation. The Company is focused on deliverables, client and investor confidentiality, and satisfaction.

Business World

FedEx Survey Shows Indian SMEs Believe Growth in E-Commerce to Continue

Dec 24, 2020 by Neel Achary 0 Comments #entrepreneurs, #Small Businesses

Bangalore: FedEx Express, a subsidiary of FedEx Corp. (NYSE: FDX) and one of the world’s largest express transportation companies, shared the findings of a recent small and medium enterprise (SME)-focused survey in India. The FedEx-commissioned survey was conducted by the independent research firm Dun & Bradstreet India to identify trends in e-commerce and digital adoption among SMEs during the COVID-19 pandemic.

The survey reveals a sense of optimism among SMEs in India, largely driven by the growth in e-commerce sales, with 30% of small businesses and 40% of medium businesses seeing a rise in e-commerce sales since lockdowns began. The pandemic and its resulting restrictions have led to a shift in consumer behavior towards e-commerce, with 35% of small businesses and 54% of medium businesses surveyed believing that e-commerce sales will improve their financial growth following COVID-19.

During this festive season, SMEs are enhancing their e-commerce capabilities and rethinking their online shopping strategies in anticipation of significant sales. Thirty-four percent of surveyed SMEs expect strong peak season demand. This matches the findings published by Redseer, which stated that peak season sales in India are expected to almost double this year, reaching $7 billion in gross merchandise value compared to $3.8 billion in the same period last year[1]. With the expected continued rise in e-commerce sales, 80% of medium and 58% of small businesses in the FedEx-commissioned survey also believe that increased buying behavior on e-commerce platforms will continue following the pandemic.

SMEs are also embracing digital solutions, with 76% of small businesses and 60% of medium businesses stating that they are seeing a rise in digital payments received since the start of the pandemic. Digital wallets are also seeing greater adoption, with higher rates among small businesses (28%), than medium businesses (7%).

Commenting on the survey results, Mohamad Sayegh, vice president Operations for FedEx Express in India said, “Throughout COVID-19, we have seen that consumers are increasingly shopping from home, and with continued travel limitations and efforts to control the spread of the virus likely to prevent people from visiting family and friends this festive season, more gifts are likely to be shipped this year, rather than delivered in person.”

“With the expected continued surge in e-commerce sales, FedEx has been working with businesses to encourage their customers to shop and ship early. We are confident our global and domestic networks will support the demands of each business and their customers,” he added.

The value of fast and secure shipping is also a consideration for both shoppers and businesses selling online. The survey highlighted that 41% of SMEs believe that their customers would pay more for faster delivery, making the choice of the right logistics service provider with the ability to support business growth driven by time-sensitive shipments a priority for businesses.

FedEx has a long history of supporting entrepreneurs and small businesses and is committed to helping them reach their full potential. FedEx has held several editions of their Small Business Grant Contest in India, which provides small businesses with the inspiration and financial resources to take their businesses global, helping them to grow their footprint and sharpen their competitive edge.

FedEx has also organized the SME Connect series, a knowledge-sharing and thought leadership platform for SME customers in Surat, Udaipur, and Chennai. The SME Connect series also provides a forum for these businesses to interact with industry experts for solution-oriented discussions to support their businesses and future growth.

Business World

The Growing Popularity Of Virtual Office Spaces Amongst Startups And Small Businesses

Oct 2, 2020 by Gouri Achary 0 Comments #Mr. Kushal Bhargava, #MyBranch, #Savills India, #Small Businesses, #Startups, #Virtual Office Spaces

With leasing and construction activity coming to a standstill in the first few months of the lockdown, research by Savills India reveals that total leasing declined by almost 60% in H12020 across six major cities to 13mn sq. ft (as compared to the year-ago period).

Individuals and newbies who have opened new businesses during this pandemic and do not require physical office spaces are mostly opting for virtual offices. Mostly because of one of its various benefits I.e., cost-cutting. A virtual office is a small office provided to new entrepreneurs where you get a dedicated receptionist to answer your calls, one can also book boardrooms and meeting rooms if they want with the latest audio-video equipment including high-tech facilities like video conferencing with high-speed internet connectivity. There is also a choice of taking one or all the services as per the client’s requirements. Clients can also take advantage of the provided address to them which can be used on their letterheads and business cards.

With a virtual office, a person can consider business expansion easily and showcase a well-established corporate image on their business documents.

Mr. Kushal Bhargava, Co-founder of MyBranch, the company which is easing Shared, Managed and Virtual Office Space requirements for corporate and startups said, “We at MyBranch have witnessed a 50% hike in the virtual office space requirements after the lockdown restrictions were lifted. These leads were mainly from the service & e-commerce industry. Their requirements also included GST registration for the state. Apart from providing an official address with a GST number, the virtual office spaces also help the growing entrepreneurs with the facility of meeting rooms and inbound-outbound communication management.”

MyBranch is planning to expand to 13 new cities with their entire service range shortly and is expecting an increase in the demand for virtual spaces in those cities as well.

Hiring a virtual office space is quite a cost-effective and convenient option for the E-commerce industry, SMEs or individuals who have started their own businesses.

Success hugs you when you minimize your costs and overhead expenses and focus on increasing your sales. Virtual offices are an excellent choice for startups, entrepreneurs, travelling executives, project-based clients/organisations who want to start a venture in a new location.