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Dear Readers,
Launch anything digital and you have to deal with fixing bugs. So, while the first issue of The FISME Factor was fairly well-received, many did not receive it at all or could not open it properly. Hopefully, this time there should be no such problems. In this double issue we have introduced one new section Voice Your Views and two new sub-sections in our Media Monitor section – Macro Metre and Developments Dissector - apart from retaining the ones we started with. In the new section Voice Your Views, please post your comments so that they are heard in the corridors of policy-making power. In the first new sub-section Macro Metre , we will cover news that will give you a macroeconomic perspective and in the second new sub-section called Developments Dissector , we will bring you incisive articles that read the fine print and provide you with analysis and implications of developments that make news headlines. So, dear readers, go right ahead and plunge into your favourite newsletter!
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4th MSME Summit
January 2012, Kolkata
Join the 4 th MSME Summit in Kolkata, January, 2012, and expand your business network.
Def+Contract Expo
March 2-4, 2012, Bangalore
Participate in the second edition of the hugely popular Def+Contract India exhibition - an international MSME sub-contracting & supply expo for Defence, Aerospace and Homeland Security to be held in Bangalore, March 2-4, 2012.
IPR Awareness
The Intellectual Property Rights Facilitation Centre (IPFC) of FISME will soon be organising IPR Awareness programmes at Ferozabad, Ankleshwar, Meerut, Aurangabad, Nasik, and Vishakhapatnam. Watch this space for more details.
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What should be the policy for FDI in multi-brand retail?
Marketing Mantras
10 Inexpensive Ways to Advertise Your Small Business
Here is an article that offers 10 simple ways to advertise your small or medium sized business. While the article has been written from an US perspective, most of the suggestions seem to be relevant from an Indian point of view as well.
Technology Tracker
Use Google+ as marketing tool
Google recently rolled out Google+ branded pages, similar to a Facebook page. This Google+ feature is good news for small business owners as it allows us to create another marketing distribution channel within the social media landscape. Google holds true to building all of its products to mesh well with one another. More importantly, Google+ is transforming into a stronger tool for small business owners.
HR Heuristics
Learning from A.N. Haksar
 The legendary Ajit Narain Haksar, a Harvard Business School alumnus, joined ITC as a “pupil” (the company’s nomenclature for management trainees) in 1948; two decades later, he became its first Indian chairman. With frugal resources at his disposal, Haksar embarked on transforming the company, and from the difficult tobacco trade he diversified it into hotel business and paperboard manufacturing. All this, and more, in a licence permit raj, with a shallow capital market and consumers who had limited purchasing power. By his own admission, Haksar faced a triad of challenges: a company with a legacy of style over performance, a country where doing business was difficult, and an obstructionist overseas shareholder with a colonial mindset. So what made him tick? Haksar possessed that ethereal leadership quality that appreciated the importance of human resources. A bunch of capable and humane senior leaders, who epitomized rectitude, were entrusted to craft a strategy to invest in human capital.
Intelligence on IPR
Analysis of Small Business Innovation in Green Technologies
In a series of studies done by the Office of Advocacy, the United States Small Business Administration of the US government it has been found that small business not only play a significant role in developing emerging technologies but in fact they file more patents for such technologies than bigger firms. In their latest study on green technologies, this fact has been borne out again.
Trade Trends
Pak softening on trade will change face of South Asia
The shift in Pakistan’s policy implied in the country wanting to normalise trade relations with India is like a breath of fresh air in the stale atmosphere of confrontation in which this region is normally bogged down. Long stuck in a political logjam, increased and freer trade can go a long way in improving relations between the two adversaries. Trade has played a positive role in conflict resolution between neighbouring countries, the prime examples being the European Union and Asean. Apart from greater prosperity, strong economic ties have gone a long way in bringing countries with border conflicts closer together.
Rising trade gap with China
The widening trade deficit with China has the country's strategic establishment worried, providing backing to the commerce department's move to restrict imports as part of its 'China strategy' while pressing for free-trade agreements with other countries to diversify sourcing. The National Security Council Secretariat, which recently hosted inter-ministerial consultations on the burgeoning India-China trade gap and its strategic implications, has sent out a note to all stakeholders detailing its concerns.
Special Report
India can become big trading partner for Latam & Caribbean
 According to a recent study by the United Nations Economic Commission for Latin America & the Caribbean (ECLAC), exports from countries in Latin America and the Caribbean to India represented only 0.9% of the region’s total exports in 2008-2010 and 6.2% of those sent to Asia-Pacific in 2010. Although the figure was lower than that of exports to other nations, such as Korea and China, there is significant potential for increasing it in the medium term. In the new publication entitled India and Latin America and the Caribbean. Opportunities and challenges in trade and investment relations, the Organization of the United Nations reveals that the outlook is promising, in particular in the present context of the larger influence of emerging nations in the world economy, including India and the countries of Latin America and the Caribbean.
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Directory of Testing Laboratories in India
Buy our one-of-a-kind guide to all industrial testing laboratories in India. Find the one most convenient for getting your products tested and certified. An invaluable compendium for all industrial units and exporters.
PP: 894, Hard Cover.
Price: Rs 900.
50% discount for members.
Handbook for Managing Export Payment Risks
If you are an exporter you simply cannot do without this unique publication which tells you how to manage payment and other risks arising from exports.
PP: 78.
Price: Rs 300.
50% discount for members.
Study on Standards in Electronics Sector
Another one-of-a-kind collection of mandatory and voluntary standards applicable for the electronics sector. A muyst have for those in the business of producing electronic products.
PP: 108.
Price: Rs 300.
50% discount for members.
Free Publications
Fertilizer quality control in India: Need for change
This monograph argues for a systemic change in fertiliser quality control. Essential reading for those in policy-making positions.
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FISME regularly receives monthly reports on the economies of various countries from their missions in India. These reports provide information on key economic parameters, trade related information and all news relevant for importers and exporters. In this edition you can take a look at reports on:
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In case you are planning to visit the United Arab Emirates (UAE) or via the UAE to any other country, please make sure that you are not only not carrying any known narcotic drug but also such items as khus khus (poppy seeds), a commonly used Indian spice, as also gat leaf, betel leaf or nuts, niswar and guthka in any form, either intentionally or accidently. The country has extremely strict anti-drug laws, and recent reports indicate innocent people carrying such items without knowing the stringent UAE laws have faced imprisonment and severe harassment. The UAE’s anti-drug laws provide for stiff punishment including a minimum of 20 years of imprisonment or even death penalty.
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FDI in retail: FISME stance leads to policy tweak
 While the government has finally been forced to put on hold its policy to allow 51% foreign direct investment (FDI) in multi-brand retail, it was not before there were some significant developments reflecting the importance of FISME, India’s largest organisation of micro, small and medium enterprises, in India’s policy-making framework. The stance taken by FISME President Mr. V.K. Agarwal led to a media clamour and a change in the government's position.
FISME launches study on FDI in multi-brand retail
As FISME is of the view that the matter needs to be studied in greater detail and an appropriate policy response should be taken only after due consultation with stakeholders, an internal study has been launched. FISME also requests its members, partners, MSME well-wishers and all other MSME stakeholders to send in their views on the subject so that these can become a vital input in the FISME study which when completed will be submitted to the government as a policy White Paper. Please post your comments in our new section Voice Your Views. Please check out our compilation of news on the subject in the FDI in Retail sub-section in the Media Monitor section. Please also take a look at our Policy Polemics section for some background information.
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Will FDI in multi-brand retail be beneficial to micro, small and medium enterprises? What safeguards should be included in the policy to make it so and ensure the survival and growth of MSMEs?
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Participants hail Bangalore Design programme
As part of the Design Clinic Scheme of the Ministry of MSME, Government of India, FISME organised a design awareness seminar in Bangalore on 18.11.2011 in association with Peenya Industries Association, Bangalore and the National Institute of Design, Ahmedabad. The programme was attended by more than 40 entrepreneurs and manufacturers of Bangalore who went back immensely satisfied from what they learnt at the seminar. While design experts and speakers made the entrepreneurs aware of the benefits of design intervention in manufacturing, an interactive session that followed allowed participants to ask many questions about the various components of the Design Clinic Scheme and also about the significance of new innovations and design in the manufacturing processes. Most participants requested FISME to organise more such interactive sessions in the near future.
FISME conducts Design Showcase programme in Bhopal
As part of the promotional campaign under the Design Clinic Scheme for MSME’s, FISME in association with Madhya Pradesh Laghu Udyog Sangh (MPLUS) organized an Orientation cum Showcase Design Programme for MSMEs at Hotel Lakeview Ashok Bhopal. The programme was supported by the National Institute of Design, Ahmedabad (the nodal agency for the implementation of the Design Clinic Scheme) and Ministry of MSME, Government of India. The objective of the programme was to sensitize the relevant stakeholders of Madhya Pradesh about the design clinic scheme and to bring about design interventions among MSMEs. The programme also showcased various design projects initiated under this project. The event got a fair bit of coverage in the local media. Read media reports.
Training for climate change by GIZ-FISME
 FISME helped the German international cooperation organisation GIZ to organise an awareness-cum-capacity building programme for Micro, Small and Medium enterprises (MSMEs) on December 7, 2011 at Hotel Jaypee Vasant Continental, New Delhi. The programme was organised by GIZ, India Office in association with Adelphi (Germany). The objective of the awareness-cum-capacity building programme was to apprise the participants about the risks associated with climate change to business entities and also the new business opportunities emanating from climate change – new products and services that need to be developed to address changing needs by various adaptation and mitigation efforts. Dr. Mikael Henzler (MD, Adelphi) was the key resource person. The MSME participants were also addressed Mr. Manfred Habig (Director Private Sector Development GIZ), Mr. Anil Bhardwaj (Secretary General FISME), Mr.Amit Kumar (Snr Technical Expert, GIZ).
FISME sends suggestions on revamp of Indian patent office
The Department of Industrial Policy & Promotion in the Ministry of Commerce and Industry, Government of India invited suggestions from the public on reorganisation of the office of the Controller General of Patents, Designs and Trade Marks (CGPDTM) based on their background paper on the subject. FISME’s views are now available on the DIPP website.
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Macro Metre
Weaker growth seen in mid-year review
 The mid-year economic review presented in the Lok Sabha by Finance Minister Pranab Mukherjee on December 9, 2011, painted a dismal picture of the economy, slashing its full-year growth projection and admitting that it will likely miss its fiscal target amid a deepening global crisis. The review said the GDP could grow between 7.25% and 7.75% in the entire fiscal, well below the 9% projected in the budget, and it is likely to miss its fiscal deficit target of 4.6% of GDP. “The analysis of several data series and simple macro-economic modelling leads us to forecast a GDP growth rate of 7.5% (+/- 0.25%) during 2011-12,” the review said. Economists, however, said the government's revised estimate still erred on the side of optimism, and they pegged GDP growth for the entire fiscal closer to 7%. That's a shade higher than the 6.9% growth in the second quarter of the fiscal, the slowest in over two years, and lower than the 7.3% expansion in the first half of the fiscal. Chief economic advisor Kaushik Basu said the fourth quarter, which has the biggest weight in the GDP, could throw up better numbers, though he cautioned that India could be stuck in the range of 7% growth for a while in case the eurozone crisis deepens. “The sharply deteriorating global economic environment has had a dampening effect,” the review noted, adding that the situation had been compounded by some domestic factors. Economists partly blamed the government for its policy inertia, which, they said, had hurt sentiment and hit investments.
October industrial output at -5.1% versus 1.9% in September
 India's industrial output shrunk by 5.1 per cent in October after witnessing a sustained slowdown over the past few months, led by a steep fall in production of almost all sectors, particularly manufacturing, mining and capital goods. Factory output, as measured by the Index of Industrial Production (IIP), had grown by 11.3 per cent in October last year. As per data released by the government on December 12, 2011, industrial output grew by 3.5 per cent in the April-October period this fiscal, as against 8.7 per cent in the same period last year. C. Rangarajan of the Prime Minister Economic Advisory Council (PMEAC), said that the data was disappointing particularly that of capital goods. The news should ring alarm bells for a government already grappling with sliding export growth and vanishing capital flows.
The news
Goof-ups overstated export figures by almost $9 bn: Govt
 Computer and human errors have overstated India's export figures by almost $9 billion, the government said on December 9, 2011. This confirms fears about the robustness of the country's export performance and adds to the vulnerability of the rupee. Commerce Secretary Rahul Khullar said exports for the first seven months of the fiscal would now need to be restated down by $9 billion to $170.8 billion, a calculation error he said occurred due to a system crash in the DGCI&S and mistakes in classification and data entry by officials. “Mistakes take place. Every number for the last seven months was revised. This notion that the government is deliberately cooking up and telling you lies has got to stop,” Khullar said at a press conference.
The Dissection
Is this a goof-up or a scam?
First it was a report by three researchers of Kotak Securities released way back on October 10, 2011, that raised doubts about India’s export figures and FII inflows. “Our study of exports data of major engineering companies (including automobiles and metals) shows that the increase in their exports does not reconcile with the steep increase in official exports data. In fact, the gap is quite substantial.” This led to media dissection. Two dissections followed in quick succession. The first on October 12, 2011 by veteran financial journalist R. Jagannathan styled Scam 2.0: How $40 bn of exports and FII flows may be fiction argued that this was probably black money coming back to India and the second on October 21, 2011, headlined Exports or black money? Time for govt to investigate bolstered the argument further and urged the government to investigate. After presumably one month of investigation, the government admitted on December 9, 2011, that there had indeed been a goof-up. Jagannathan has now come out with a third article that puts the whole issue in perspective. Here it is:
Bad data? Why $9.4 bn export reporting ‘mistake’ is a scandal
 Is a $9.4 billion hole that difficult to spot? Or a $15 billion export surge in just one industry sector all of a sudden? Well, if one is to believe Commerce Secretary Rahul Khullar, exports were overstated by around $9.4 billion during April-October this year because of a system crash in the commerce ministry and mistakes in data classification and data entry. This is his incredible statement: “Mistakes take place. Every number for the last seven months was revised. This notion that the government is deliberately cooking up (data) and telling you lies has got to stop,” The Economic Times quoted Khullar as saying on Friday. Mr Khullar, we haven’t accused you of cooking up data— so one does not know where that comes from, unless it is a guilty conscience. Your boss, Anand Sharma, who has just had a fiasco with FDI in retail, cannot afford an export data scam.
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SMEs in north oppose FDI in multi-brand retail
 Even as political parties continue to debate the merits and de-merits of allowing entry of foreign retailers, some small and medium enterprise (SME) associations in the northern region have vociferously opposed the entry of foreign supermarket chains. P D Sharma, president of the Apex Chamber of Commerce Undertakings, said that though it is being claimed that FDI in multi-brand retail will benefit SMEs (since 30 per cent of sourcing will be from them), it is well-known that developed countries cite extraneous factors as excuses for not purchasing from Indian manufacturers.
CII Kerala Council welcomes FDI in multi-brand retail
The Kerala State Council of the Confederation of Indian Industry (CII) has welcomed the Centre's decision to allow 51 per cent foreign direct investment in multi brand retail and 100 per cent in single brand formats. Mr Jose Dominic, Chairman of the Council, said that is of the view that FDI in retail will greatly boost organised retail in India and drive inclusive growth. The biggest beneficiary would be the Micro, Small and Medium Enterprises (MSME) and consumers at large.
SME sourcing norms violate WTO norms
 While pushing through FDI in retail, the government may end up completely watering down the sourcing requirement from micro and small enterprises as the revised provision is non-compliant with the provisions of the World Trade Organisation.
Small units to benefit from FDI in retail: Chambers
Shrugging aside concerns about several States stalling FDI in multi-brand retail, the chamber bodies described how the move would have a positive impact on the small and medium enterprises (SMEs) sector. According to the Federation of Indian Chambers of Commerce and Industry (FICCI), the current size of the Indian retail market is $450 billion which is expected to increase to $850 billion in the next 10 years. At present, 35 per cent of products are sourced from SMEs. The projections are that by 2020, more than $298-billion worth products would be sourced from SMEs
SME sector in Punjab upbeat over FDI in retail
Small and medium enterprise (SME) sector in northwest India is seeing plenty of opportunity as 51% foreign direct investment has been allowed in retail sector. Confederation of Indian Industry (CII) is of the view that FDI in retail would greatly boost organized retail and drive inclusive growth, especially of SMEs, farmers and consumers, as it will offer wider choices with better quality.
FDI in retail would prove beneficial in long run: Minister
Defending the central government's decision to approve 51 per cent Foreign Direct Investment (FDI) in multi-brand retail, Minister of Micro, Small and Medium Enterprises (MSME) Virbhadra Singh said it would prove beneficial to the country in the long run. "I don't think we need to worry about it. There is a lot of misconception about the FDI. It will prove beneficial to the country in the long run," Singh said.
Other News
Govt may hike SME investment cap
Small is set to get bigger. The government is planning to revise the investment limits for the classification of micro, small and medium enterprises and also link it to employment and turnover, as is the case in several parts of the world. The investment ceiling is being reviewed as the last such revision took place around five years ago and since then the cost of plant and machinery has shot up significantly. There is also discussion on linking the investment cap to inflation, something that has been talked about in the past too, so that the industry does not have to depend on periodic revision and can instead scale up as and when required.
Call for redefining category of micro units
The Madurai District Tiny and Small Scale Industries Association (MADITSSIA) has urged the Central Government to redefine the category of ‘micro units' by increasing the turnover limits 10 fold from the present Rs. 25 lakh to Rs. 2.5 crore. Similarly, it also sought redefining the ‘smaller units' category to ten times that of Micro Units. Pointing out that micro, small and medium enterprises (MSMEs) accounted for 45 per cent of the country's manufacturing output and 40 per cent of exports besides employing 50 million people in 26 million units, the trade body said that the sector must be given due importance in the Budget of 2012-13.
TANSIDCO to study SME issues
The Tamil Nadu Small Industries Development Corporation Limited (TANSIDCO) will soon conduct a study on all issues affecting micro, small and medium enterprises, including the problems of upgrading technology and shortage of skilled man power, according to chairman and managing director of TANSIDCO Hans Raj Varma. This follows the Tamil Nadu chief minister J. Jayalalithaa’s directive to revamp TANSIDCO to make it more beneficial for micro, small and medium enterprises (MSME) operating in the state economy, he said.
Banks asked to adopt proactive approach
Commercial banks should adopt a proactive approach towards forwarding credit to the micro, small and medium enterprises (MSME) sector, according to M. Maheshwar Rao, Commissioner for Industrial Development and Director, Industries and Commerce, Karnataka government. Speaking at the inauguration of ‘MSME Loan Mela 2011’ organised recently by Vijaya Bank in association with Peenya Industries Association, he said that the MSME sector has the potential to generate higher exports and thereby a high turnover but lack of timely and adequate financial assistance thwarts the growth of small players in the sector.
Pranab for adequate credit flow to eastern states
Union Finance Minister, Pranab Mukhrjee asked public sector banks and financial institutions to ensure adequate flow of credit to boost up the agriculture and MSME (Micro, Small and Medium Enterprises) sectors in East Zone States. Mukherjee who came with his Minister of State Namo Narain Meena and Secretary Finance Services D K Mittal, held a four hour meeting with Chief Ministers of the Eastern States and CEOs of the public sector banks and financial institutes like IIFCL, LIC and PERDA.
Cluster development plan kicks off in Pune region
After a delay of over four years following its launch, the Central government’s flagship scheme of cluster development aimed at upgrading the infrastructure of industries has finally kicked off in the Pune region. The Ministry of Micro, Small and Medium Enterprises (MSME) has provided the grant-in-aid for two mega clusters — which are among the 17 proposed by the Industries Department in the five districts of Pune. Out of the proposed clusters, six in the readymade garment, automotive and food processing sectors are coming up in the Pune district.
Maharashtra for MSME ‘mini cluster’ project
The Maharashtra government has recently proposed a 'mini cluster' project for the development of micro, small and medium Enterprises (MSME) in the state in its new draft industrial policy. This 'mini cluster' is in addition to the existing MSME clusters supported by the Central government, said a senior government official. The Union ministry of MSME has adopted the cluster development approach as a key strategy for enhancing the productivity and competitiveness, as well as the capacity building of MSEs and their collectives in the country.
IndiaMART.com, Jade Magnet Offer Design Solutions
IndiaMART.com, India's largest online B2B marketplace, and Jade Magnet Online Private Limited, a technology platform that runs on crowd sourcing, has launched a strategic partnership that aims to enhance the marketing strategies of MSMEs and cater to their needs of design solutions cost-effectively. On its exclusive My.IndiaMART.com channel, IndiaMART.com will enable its clients with Jade Magnet's professional help for logo designs, website designs, power point designs, print media ad or brochure designs via its network of creative freelancers.
NSIC to get more funds to provide marketing support
The government has decided to infuse an equity of Rs 300 crore into National Small Industries Corporation (NSIC) in the next three years to provide marketing support to the small-scale sector. NSIC, a PSU under the MSME Ministry, provides technical, financial and marketing help to small industry.
Growth in credit to MSME sector slows to 17.4 pc in Oct
Growth in credit off-take by the micro, small and medium enterprise (MSME) sector slowed to 17.4 per cent at Rs 4.73 lakh crore in October compared to an increase of 20 per cent in October last year. However, bank lending to the priority sector grew at a mere 10 per cent in October this year, on an annual basis, on account of lower off-take by agriculture and MSME segments as well as decline in micro credit.
IOB plans to restructure SME and corporate loans
In order to facilitate its corporate customers who have been hit by dollar appreciation and slowdown, Indian Overseas Bank is planning to restructure its SME and corporate loans. “The dollar appreciation has impacted importers. Also, corporates who have raised money under FCCB (Foreign Currency Convertible Bond) route are under pressure and they are finding it difficult to repay. We are getting applications from our customers regarding restructuring of loans. In order to address the issue we have facilitated them by offering longer repayment schedules and we are thinking to further facilitate them,” said executive director, A K Bansal.
Gujarat SMEs log on to cloud services to boost data backup
With over 10 per cent of the overall three million-odd small and medium enterprises (SMEs) in the country present in Gujarat, Hitachi Data Systems is set to launch its cloud services for the segment from the state. The SMEs in Gujarat are said to be looking at data backup and email management services along with data and business analysis by cloud solutions providers. Earlier this year, at the 9th meeting of the National Board for Micro, Small and Medium Enterprises, Minister Micro, Small and Medium Enterprises (MSME), Virbhadra Singh said that the government would collaborate with service providers to provide latest information technology and software to small units at cheaper rates.
Orissa bifurcates industry department
The Orissa government has decided to form a separate micro, small and medium enterprise (MSME) department by bifurcating the industry department to pay focused attention on the development of the micro, small and medium enterprise sector. The proposal, which was pending for quite some time finally got the nod of the state Cabinet on December 3, 2011.
Common facility centre for MSMEs in 2 years
A total of 240 common facility centres (CFC) will be operationalised in India within the next two years, a top official has said. Each CFC will have a common infrastructure to support a cluster of at least 20 small scale units, said S. Sivagnanam , director of MSME Development Institute, Tamil Nadu.
Huge potential for SME Exchange
 Small and medium enterprises have huge listing potential once the BSE SME Exchange commences operations, the CEO of the first SME-focused exchange in the country, reports Press Trust of India from Amritsar quoting the BSE SME Exchange CEO Lakshman Gugulothu. "The Indian small and medium enterprise (SME) sector will have a huge listing potential in the coming years," he said during a seminar on 'Raising of Equity Capital and Listing of SMEs on BSE SME Exchange', which was organised by the PHD Chamber and BSE in the northern city.
India proposes SME biz among Indian Ocean rim countries
At the Indian Ocean Rim Business Forum (IORBF) in Bangalore, India has proposed to bring together small and medium enterprises (SMEs) to explore and pursue various business opportunities in the 18-nation Indian Ocean Rim Association for Regional Cooperation (IOC-ARC). The proposal was accepted by 12 countries, Manju Kalra Prakash, Assistant Secretary General of the Federation of Indian Chambers of Commerce and Industry (FICCI), the nodal agency for the business forum, told media persons. India was keen to host this SME event in 2013. Participating countries would discuss "all possibilities", including capacity building, transfer of technology and setting up of enterprises "if so required", she said.
India, S. Africa to cooperate in MSME sector
 India and South Africa on November 15, 2011 agreed to boost trade and investment and further strengthen bilateral cooperation in the micro, small and medium enterprises (MSME) sector. Minister of State for Commerce and Industry Jyotiraditya M. Scindia held bilateral talks with visiting South African Trade and Industry Minister Elizabeth Thabethe to discuss the areas of business cooperation. During the discussions, Scindia reiterated the offer of India's full cooperation for the development of micro, small and medium enterprises (MSME) sector in South Africa, according to the official statement released after the meeting.
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Focus on China
China to exempt small businesses from 22 fees
In a move to substantially reduce the financial burdens on the country’s micro and small-sized enterprises (MSEs), China recently announced that MSEs would be exempt from 22 types of administrative fees charged by 13 different government departments. The introduction of this new favorable fiscal measure is yet another step China is willing to take to assist its MSEs following other recent promises of favorable loan offers and tax treatment.
Focus On Bangladesh
Dhaka to hold 5-day SME fair
The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), Dhaka will organise a five day SME fair from December 20 to promote the small and medium sector with the objective of quality improvement, market promotion and creation of jobs. The fair will be held at Bangabandhu International Conference Centre in the capital, a press release issued by the apex trade organization said.
Focus On Taiwan
SME Loans by Taiwan’s Domestic Banks Drop in October
Loans by domestic banks to small and medium enterprises (SMEs) in Taiwan dropped by a monthly NT$6.6 billion (US$220 million) in October, the first fall in 21 months, according to the Financial Supervisory Commission (FSC). However, the loans to SMEs increased by NT$380 billion (US$12.67 billion) in the first 10 months, higher than the full-year goal of NT$200 billion (US$6.67 billion) set by the FSC.
Focus On Dubai
Suzlon, Orb Energy shortlisted for energy innovators award
Tulsi Tanti-led Suzlon Energy and Indian SME Orb Energy are among 14 companies shortlisted for this year’s Zayed Future Energy Prize for top sustainable energy innovators. Suzlon has been shortlisted for the award in the Large Corporations category, while Orb Energy is in contention for the award in the SME and NGO category. Besides Suzlon, other companies in contention for the award in the Large Corporations category include Schneider Electric (France), GE Energy Financial Services (United States) and GE Power & Water (United States).
Focus on Thailand
Thailand's SMEs hit by floods
 The gross domestic product of small and medium-sized enterprises (SMEs) is expected to grow only 1.4-2.5% this year, a sharp drop from the earlier projection of 4-5% because of heavy floods, said the Office of Small and Medium Enterprises Promotion (Osmep). Yuthasak Supasorn, Osmep's director, said 550,000 small businesses have been affected by floods.
Focus on South Africa
Web site crucial for SMEs
It is crucial that South African SMEs have an online presence. This is according to Arthur Goldstuck of World Wide Worx who says consumers are using the Internet to source products and services, which will increase exponentially as users turn to their phones to access the Internet. South Africa is about to reach a crucial moment in the evolution of the Internet. Not only is Internet access becoming more affordable, it is also becoming more accessible as people from a variety of economic backgrounds are increasingly accessing the Internet using their mobile phones. “This will have a profound effect on how businesses provide information and services to a growing online savvy user base,” says Arthur Goldstuck, MD of World Wide Worx. Goldstuck, principal analyst for the annual SME Survey in South Africa, points to a coming watershed that will make it all the more crucial for small and medium enterprises (SMEs) to have an effective online presence.
Focus on Rwanda
Rwanda government to boost SMEs
The Rwandan government will soon embark on a programme to ease access to finance among Small and Medium Enterprises (SMEs) to heighten production and enhance their development in the country. This was said on November 15 by Trade and Industry Minister, Francois Kanimba, on the sidelines of a one-day consultative meeting to discuss SME development. The minister noted that SMEs play an important role in a country's economic development, undertaking that government would continue to safeguard their growth. “What we need is to assist all these SME operators to access finance from the financial intuitions to boost their businesses,” Kanimba said.
Focus on US
White House outlines small-business outreach
In its latest executive action, the White House announced new steps to spur start-up businesses and help them access $2 billion in resources. The U.S. Small Business Administration said it would move forward with a previously announced effort to launch a $1 billion fund to provide matching capital to early-stage small businesses. The project, called “Startup America,” is aimed at harnessing innovation and entrepreneurship by leveraging private-sector investment.
Focus on Latin America
Latam banks targeting SMEs to expand business: Survey
A large majority of banks in Latin America and the Caribbean consider small and medium-sized enterprise (SME) as a strategic part of their business and are upbeat about expanding their business to this sector in the next two years, according to the Latin American Banking Federation, Feleban. Out of 190 banks in the region surveyed by the Inter American Development Bank for Feleban, 73% expect an increase in their SME portfolio, and 83% expects the economic situation of these businesses to improve in the next two years.
Focus on UK
Small business e-commerce scheme launched
The behavioural insight team at Downing Street has analysed what prevents small businesses from exporting more and its findings have led to the launch of a free e-commerce scheme for more than 3,500 firms. Officials believe small businesses are discouraged from exporting because of “soft” barriers to trade such as a lack of confidence and social links. But firms that enhance their online presence can significantly boost overseas sales and officials believe more firms could be encouraged to follow suit. The result is the Business department’s Web Fuelled Business initiative, which will see small business owners, freelancers and managers offered free places on one-day seminars in 11 cities from January to March next year.
Focus On Ireland
More than one-fifth of SMEs suffer loan squeeze
Irish SMEs are the second most likely businesses in Europe -- after Estonia -- to have their bank loan applications rejected, according to a stark new survey by the European Central Bank (ECB) and European Commission. Over a fifth, or 22.6%, of Irish small and medium-sized companies said that loan applications they made in the past six months were rejected outright.
Focus On Belgium
Brussels seeks to boost SMEs’ access to venture capital
The European Commission proposed a new regulation that is supposed to make it easier for venture capitalists to raise funds across the EU and lend more money to innovators and start-up businesses. “We need to help young innovators and SMEs to become more innovative and competitive facilitating their access to funding,” Internal Market Commissioner Michel Barnier told a press conference.
Focus on Australia
Small business conditions weaken further
Small business trading conditions and confidence have continued to deteriorate against the backdrop of an escalating European debt crisis, and weak consumer confidence and spending, a new survey shows. The Australian Chamber of Commerce and Industry's (ACCI) small business survey showed its conditions index fell to 41.0 in the September quarter, from 42.1 in the previous three months, to its lowest level since March 2009. The index remains below the 50 mark that separates expansion from contraction and is 6.1 points below its five year average. The survey released on November 15 also showed the expectations index for the current December quarter falling below the 50 point level for the first time in two years.
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Canadian cos looking for Indian partners
Two Canadian companies - Canada Motor Import Inc. and Earigate International Inc. - are looking for Indian partners.
Business offers from Israel
The Israel Business Promotion Centre of the Embassy of Israel has informed that 5 Israeli companies are looking for distributors, agents and/or buyers in India.
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10 new members join FISME
During the period November 15, 2011 to December 14, 2011, a total of 10 new MSMEs became members of FISME.
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