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HR Heuristics
Spot a bad employee
 An often-quoted maxim in business is, "It is better not to have an employee than to have the wrong person on the job."
Finance Fundamentals
The unsaid rules of signing up with Venture Capitalists
 Venture Capitalists (VC) and Private Equity Funds may seem like an entrepreneur's best friend but this relationship comes with some pretty serious riders that could derail even a potentially profitable start-up.
Marketing Mantras
Should the customer always be treated as the 'King'?
 If the following thoughts haunt you, you may need to rewire your thinking: 'The customer is always right! The customer is king!' Indeed, being an entrepreneur is all about customer satisfaction but you don't have to be a slave to them.
Technology will be a game-changer, especially for SMEs
 Using smart technology improves productivity and saves costs. Until recently, small- and mid-size businesses in India faced challenges like low awareness, high costs, lack of skill sets, lack of infrastructure and so on, with respect to adapting to technology.
Policy Polemic
For a deep, liquid corporate debt market
The need for development of the corporate debt market in the country is so important that not a single report of the various committees — set up by the Finance Ministry or the Reserve Bank of India or industry forums — is complete without a detailed reference to it.
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Stockpile
Ancient system of barter can work best during recessionary times
In recessionary times, exchanging good and services can come to the rescue. Here's how it's done. New year is a time for new beginnings and for entrepreneurs looking to reinvent their business or give it that extra push, here's an exciting idea - try barter.
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Quotable Quotes
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Innovation almost always is not successful the first time out. You try something and it doesn't work and it takes confidence to say we haven't failed yet. … Ultimately you become commercially successful.
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-Clayton Christensen, Professor, Harvard Business School
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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.
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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Activities
Business Banter: Lessons from Entrepreneurs
Macro Metre
Domestic Digest
State Scan
World Watch
Knowledge Store
...And A Lot More
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 Intellectual Property Facilitation Centre of Federation of Indian Micro and Small & Medium Enterprises with the support of Department of Electronics and Information Technology, Ministry of Communications & IT, New Delhi, Government of India, organised a day long awareness programme focussing on the role played by Intellectual Property Rights (IPR) in the success of any business on January 4, 2013 in Mysore.
 Intellectual Property Facilitation Centre of Federation of Indian Micro and Small & Medium Enterprises (FISME), with the support of Department of Electronics and Information Technology, Ministry of Communications & IT, New Delhi, Government of India, organized a workshop on IPR on January 9, 2013 in Mangalore.
 The 100th edition of the Indian Science Congress (ISC) convened from January 3-7, 2013 in Kolkata. Honourable President Mr. Pranab Mukherjee inaugurated the historic session, Honourable Prime Minister of India, Dr. Manmohan Singh, as the General President of 100th ISC steered the proceedings.
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With RBI’s stepping up scrutiny of loan pricing to MSMEs vis-a-vis large corporate houses, will cost of borrowing finally come down for MSMEs?
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‘The Best Advice I Got’
-Schauna Chauhan, CEO Parle Agro
 “The best advice I ever got was: always question everything,” says Schauna Chauhan, CEO, Parle Agro. This advice was given by Mr Prakash Chauhan, her father, before she started working.
This an easy way out in any situation to accept things as they are. To question needs courage and to question oneself needs honesty. Questioning is always difficult because to question is to fight convention, to question is to invite change, to question is to understand and interpret. But questioning will help you to find new and hidden answers and it will open new possibilities.
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Macro Metre
 India's headline inflation slowed to its lowest level in three years, hardening expectations for an interest rate cut by the central bank later this month to boost an economy that is set to post its slowest growth in a decade. The wholesale price index (WPI), India's main inflation indicator, rose an annual 7.18 percent in December, the slowest since December 2009 and below analysts' forecast of 7.4 percent rise in a Reuters poll. Wholesale prices rose 7.24 percent in November.
 Dashing hopes of a rebound, the industrial output contracted to a four-month low of 0.1 per cent in November due to poor performance of manufacturing and mining sectors and decline in production of capital goods. The industrial output, as measured by the Index of Industrial Production (IIP) dipped from a robust 8.3 per cent in October. The decline may prompt the Reserve Bank of India (RBI) to consider rate cut in its quarterly review on January 29 to boost growth.
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The country's manufacturing sector growth improved further in December, registering the fastest pace in six months, driven by a strong pick up in new orders, an HSBC survey said. The HSBC India Manufacturing Purchasing Managers' Index (PMI) - a measure of factory production - stood at 54.7 in December, up from 53.7 in November, indicating a further improvement in the health of the country's manufacturing sector. Output at manufacturing companies in India rose during December, HSBC said, adding that almost one-third of panellists indicated higher production and 18% noted a decline for the period.
Admitting that foreign countries like China have gained in the first phase of India's ambitious Rs 24,000 crore digitisation process, Information and Broadcasting Minister Manish Tewari has said government was now trying to boost indigenous industry in the next phases of the exercise which has created huge demand for set top boxes. Tewari said that Secretary in the I&B Ministry Uday Kumar Varma was talking very "pro-actively" to his counterpart in the Ministry of Micro, Small and Medium Enterprises to work out ways for the Indian industry to get advantage of the digitisation process.
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To streamline flow of credit to small enterprises and ensure that rightful company gets the credit, bankers and RBI recently discussed introducing a transparent system for MSME loan proposals. "We discussed to put a proposal tracking system in place, give acknowledgement and SMS facilities to an applicant," Punjab National Bank CMD and industry body Indian Banks Association's chairman K R Kamath told reporters outside the RBI headquarters.
 Eco Friendly Food Processing Park opened at Rs 24.50, down 2 percent compared to issue price of Rs 25 a share on Bombay Stock Exchange recently. The stock has touched an intraday low of Rs 24.25. At 13:10 hours IST, the share was quoting at Rs 24.30, down 2.80.
Minister of State (Independent Charge) for Micro, Small and Medium Enterprises K.H. Muniyappa has said that 200 selected youths from each district in the country would be given loans to start their own enterprises. Mr. Muniyappa was speaking after launching the Direct Cash Transfer system for the post-matric scholarship scheme for students belonging to the Scheduled Castes and Scheduled Tribes in Sira town in Tumkur district recently. The function was organised by the Canara Bank.
 Tata Steel will tailor products for the small and medium enterprises (SMEs) segment next fiscal to generate additional revenue of about Rs 5,000 crore. Speaking to Business Line, T.V. Narendran, Vice President (Flat Products), Tata Steel, said a recent study conducted by the company found that the local SME segment is under-serviced and largely untapped. “We recently launched Tata Astrum, a hot rolled product, which will cater largely to the SME segment. We intend to sell one million tonnes next fiscal under the Astrum brand which will give us revenue of Rs 4,000 to Rs 5,000 crore,” he said.
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 India's North Eastern states are facing immense shortages in getting trained manpower for various industrial works in sectors like textile and handicrafts, rubber, bamboo making, horticulture and so on. "Trained manpower is difficult to get in the Northeast region in India but you can get educated manpower that needs to be trained. Skill development is important in Northeast (NE) region," said the Union Minister for Development of Northeast Region (DoNER), Paban Singh Ghatowar in New Delhi recently.
International Finance Corporation (IFC) is planning to invest around $25 million in India 2020 Fund II, which is a successor fund to India 2020 fund I. The new fund has a target fund size of $125 million and focused on investing in Indian small and medium enterprises (SMEs) focused on healthcare, education, rural consumption and agribusiness. According to the Corporation India 2020 Fund II has a target fund size of $125 million and IFC is proposing an equity investment of up to $25 million. The fund will be a Mauritius registered company, and will operate primarily through one or more subsidiaries formed in the Republic of Mauritius, which will acquire, own and operate the portfolio of investments.
 In an exclusive interview, Mark Runacres, India Adviser, Confederation of British Industry (CBI) said Indian small and medium enterprises (SMEs) having innovative solutions especially in cyber security, creative industries and the life sciences can avail several tax benefits if they launch their intellectual property rich products in the UK.
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Gujarat
1,000-odd MSME units downed shutter in 2 years
The latest survey undertaken to map the Micro, Small and Medium Enterprises (MSMEs) sector by the state government reveals that close to 1,000 units have shut shop across Gujarat in the last couple of years, official sources said. The preliminary data from the sample survey consisting of about 15,000 units suggests that over 5% of MSMEs in Gujarat have closed down, which is higher than the closure rate of 4.5% recorded in the last sample survey conducted in 2010.
 Gujarat Chief Minister Narendra Modi recently said a dedicated unit in the state industries department will be formed soon for catering to patent-related needs of small and medium enterprises (SMEs). "My government will soon open a patents unit in INDEXT-B (Industrial Extension Bureau) for the security of knowledge and innovation of SMEs in the state," Modi said, addressing a convention on 'Growth through Competitiveness' on the second day of the Vibrant Gujarat Summit (VGS).
Karnataka
200 small firms hurt by plastic bag ban
 Industry representatives said recently that they were pained by the order of ban on the use of plastic carry bags in Dakshina Kannada and Udupi. The move has caused hardship to nearly 200 small-scale units manufacturing plastic carry bags. “We agree the plastic carry bags cause pollution. But the sudden ban (by the district administrations) is painful for the industries, especially the small-scale industries,” said Prasadraj Kanchan, President of Udupi Chamber of Commerce and Industry. He said that the ban had affected their business.
 About 30 firms signed an expression of interest (EoI) with the Karnataka government to invest a whopping Rs.52, 000 crore in diverse sectors across the state at the sixth edition of Vibrant Gujarat summit in Gandhinagar, a senior official said recently. "About 30 firms held one-to-one meetings with our Large and Medium Industries Minister Murugesh R. Nirani and officials of the ministry during the three-day summit (Jan 11-13). The proposed investments are in power, biotechnology, pharma, aerospace, IT infrastructure and clean energy," Industry Secretary M.N. Vidyashankar told IANS here.
In order to strengthen the Small and Medium Enterprises, a plan has been drawn so as to enable the collaboration of Public Service Units and SMEs. A list of services of PSUs which could be outsourced to SMEs is being drawn in this regard and designs are invited by the interested SMEs, he said. Delayed payment or non-payment by the non-SMEs and the lack of new schemes or policies to address the requisitions of young entrepreneurs are the two main problems which are often unaddressed in this sector.
Maharashtra
 Maharashtra’s new industrial policy—christened Magnetic Maharashtra, Brand Maharashtra—aims at boosting the micro, small and medium enterprises (MSMEs). The policy, cleared by the state cabinet recently, offers these industries waiver from tax on electricity consumption, stamp duty, local taxes like octroi. It also offers MSM industries Rs.1 concession per unit in electricity tariff if they set up units in the state’s backward regions such as Vidarbha and Marathwada.
Orissa
National Small Industries Corporation (NSIC), a mini-ratna Government of India enterprise, has drawn up a plan to set up three more incubation centres in Odisha. These centres would be over and above two centres that are already running in the city. “We are planning to set up three more incubation centres in Odisha on the PPP (public private partnership) mode in 2013. These centres would be demand based and would come up in locations where we can get more number of people who can be trained,” H P Kumar, chairman and managing director of NSIC told Business Standard on the side-lines of the MSME (micro, small & medium enterprises) international trade fair held in the city.
Chief Minister Naveen Patnaik stressed the importance of strategic marketing of products developed by the units under the Micro Small Medium Enterprise (MSME) Department and informed that the vital information needed for proper marketing of MSME products will be issued by the department. Inaugurating the first five-day ‘Odisha MSME International Trade Fair’ recently, Naveen said the State Government was dedicated to organising trade fairs every year at the beginning of January to create a culture of entrepreneurship in the State.
Chief Manager (Odisha) of National Small Industries Corporation (NSIC) PC Nayak recently called upon MSME entrepreneurs to get registered with the NSIC to avail of financial, technological and marketing supports. The Micro, Small and Medium Enterprises (MSMEs) registered with the NSIC get raw materials with cheapest rates, he added. He was addressing a seminar on ‘Marketing support extended to MSMEs’ on the second day of the Odisha Micro, Small and Medium Enterprise International Trade Fair-2013 in Bhubaneswar.
Tamil Nadu
The Khadi and Village Industries Commission (KVIC) has released margin money of Rs.20 crore for acceleration of its entrepreneurship schemes in Tamil Nadu. After a two-year hiatus for clearing pending amounts in the State, the KVIC will implement schemes under Prime Minister’s Employment Generation Programme through Khadi Village Industries’ Board and District Industries Centre. Minimum eligibility is only a pass in VIII standard and the prospective beneficiary will have to invest only 5 to 10 per cent of the project cost, K.Sudhakar, KVIC State Director, informed while addressing students of Urumu Dhanalakshmi College recently.
Uttarakhand
On the concluding day of National Handloom Expo, which was organised at Parade Ground, Chief Minister Vijay Bahuguna put emphasis on promoting handloom and handicraft industries to realise Mahatma Gandhi’s dream ‘Ghar Ghar Swaraj’ in the country. In his speech CM said that the Union and State Governments had launched several programmes for artisans and small enterprises.
West Bengal
The state government would soon set up land banks and launch more industrial estates here to encourage Micro, Small and Medium Enterprises (MSME) sector, West Bengal Small Industrial Development Corporation (WBSIDC) Chairman Sabyasachi Bagchi said recently. In the first phase, land banks would come up in three districts Hooghly, Bankura and East Midnapore followed by West Midnapore, while three industrial estates were coming up at Rezinagar in Murshidabad district, Ambari Falakata in Jalpaiguri district and Durgapur in Burdwan district, Bagchi added.
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Ireland 
 The National Pensions Reserve Fund (NPRF) has announced an €850 million investment in three new funds for small and medium enterprises (SMEs). The funds were referenced in Budget 2013 and the NPRF said it will play a significant role in their development. The three funds combined will involve a commitment by the NPRF of up to €500 million as a cornerstone investor but should generate €850 depending on the amount of third-party investment raised.
Pakistan 
The Intellectual Property Organization (IPO) and SME Business Support Fund (BSF) recently signed an agreement to boost cooperation with SME stakeholder institutes of public and private sectors to protect intellectual property rights. The agreement was signed by IPO-Pakistan Chairman Hameedullah Jan Afridi and BSF Chief Executive Officer Syed Saquib Mohiuddin. On this occasion, the IPO Chairman said that cooperation with SME stakeholder institutes would continue to protect IP rights of SME businesses. The Record of Agreement (ROA) with SME-BSF is one of the steps that IPO-Pakistan has taken today, he added.
Philippines 
The Research Department of the Metropolitan Bank and Trust Co. (Metrobank) has revised its growth forecast for full-year 2012 Philippine gross domestic product (GDP) to 6.6 percent, citing the stellar growth of the economy in the first three quarters of the year. In its latest report entitled The Economic Weather Report 1Q 2013 Outlook and Forecasts, the bank said that the country’s economy seems to be on the road to a higher growth trajectory, surprising markets with remarkable expansions in the first three quarters of the year. The country’s economy posted a third quarter GDP growth of 7.1 percent, 6 percent in the second quarter and 5.9 percent in the first quarter.
Indonesia 
The Jakarta administration is planning to relocate street vendors from 23 locations across the capital with the help of the city’s companies and their corporate social responsibility (CSR) programs. Ratnaningsih, head of the city’s Cooperatives and Small and Medium Enterprises Agency, said recently that her office would invite companies — both private and state-owned — to take part in the project. “We will offer programs and the companies can choose to help implement them,” Ratnaningsih said.
Vietnam 
 India recently signed a pact with Vietnam for cooperation in the field of micro, small and medium enterprises, says an official statement. Dao Quang Thu, Vietnam's vice minister of planning and investment, and Indian ambassador Ranjit Rae signed the memorandum of understanding (MoU) in Vietnamese capital Hanoi. The agreement was inked during the ongoing four-day state visit of Vice President Hamid Ansari to Vietnam.
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Write and Win prize!
Write your comments on the FISME Factor. Share your views and suggestions on MSME issues. Win prize! The best mail will get a special book every fortnight.
send mail to: newsletter@fisme.org.in
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There are business opportunities available for Indian companies in Canada. The interested MSMEs can check details.
There are business opportunities available for Indian companies in Turkey. The interested MSMEs can check details.
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During the period January 1, 2013 to January 15, 2013 a total of 2 new MSMEs became member of FISME.
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