Today organisations world over are emphasising the importance of a gender balanced workforce. This emphasis of including a balanced ratio of women in the workforce is essentially pronounced through a multitude of HR policies. Though individual organisations have their signature approach in terms of creating gender neutral work environments there are certain broad hallmarks that characterise these organisations. Firstly gender neutral organisations are conscientious about providing equal opportunities to men and women. There is psychological evidence that women are predisposed with a set of qualities that place them in a winning stead as far as certain organisational roles are concerned. For instance women have an inherent sense of empathy that auger well in positions pertaining to corporate social responsibility and human resource development and management. At one important level ender neutral organisations are essentially those organisations that on one hand support more avenues that can translate to fulfilling careers for women. They also score high in terms of offering training and mentoring programmes that are tailored to meet specific needs. Study after study shows that having more women in the boardroom improves corporate financial performance. Companies with more women on boards far outperform those companies with fewer women directors: by 66 per cent return on invested capital of companies, 53 per cent return on equity, and 42 per cent return on sales between 2001 and 2004, according to Catalyst, a diversity organisation Further there are enough studies to suggest that women have a set of leadership styles that in turn translate to a beneficial equation for the progressive minded organisations of today which thrive on innovation and are constantly seeking newer and more effective management styles. For instance women core higher than men in areas such as participative decision-making, mentoring and coaching, defining expectations and offering rewards, inspiring peers and taking the mantle of role model. These facts clearly portend to the fact that women are endowed with certain unique leadership traits. Consequently organisations that want to truly qualify as gender neutral organisations need to recognise this fact and have structured leadership succession programmes for the benefit of aspiring women leaders. Further organisations that are genuinely inspired by gender balance imperatives are the ones that champion transparency in the decision making process so that all employees irrespective of their gender feel valued in the organisation. Moreover such organisations are sensitive to the unique challenges faced by a woman and hence provision flexible timings and virtual work environments that in turn considerably help in easing the pressures of work life. Another distinguishing hallmark of gender sensitive organisations is that they provide ample opportunities for women to network both within the organisation as well as outside of it in the business ecosystem. This is done both with the objective of helping them establish their professional credentials and identifying new people, causes and opportunities that can absorb their interests and potential. One simple way through which organisations can help women increase their network is by placing them in charge of new organisational initiatives. This approach automatically increases the scope of interaction with a greater number of colleagues. There are some networks in companies that are only cater to women. It is advisable to run these networks through men and not women. This is one way of ensuring that the issues of women employees are understood by their male counteraprts. More usually than not when there are male champions of women centric networks the potential of women and their issues are better understood. This invariably leads to the creation of a humane and sensitive work environment. It is not just enough for organisations to take a stand on gender equality. Women themselves have to be assertive in terms of their rights and prospects at the workplace. They need to ascertain their unique skills and aptitudes and be clear about their professional goals and expectations. This clarity will help them determine the exact support that they require from the organisation (in terms of training etc) and enable them to be more convincing and assertive while asking for the same. Women should also be conscientious of sharpening their negotiation skills to reach senior leadership positions. It is also advisable to find mentors and learn from experience sharing. Last but not the least they should always be forthcoming in terms of learning new skills and accepting fresh career challenges. The author is Associate Vice President - Diversity & Sustainability at HCL Technologies
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Didn't I read somewhere that the British royals were once really TV-shy? Either it was Queen Elizabeth's wedding or her coronation, but there was much convincing before they allowed a television crew (TV was new back then) to film and broadcast the event. Well, what a far cry William and Kate's wedding is from that. They're saying an estimated two billion people all over the world will "participate" in the wedding; and I can quite believe it. But what's most remarkable is the manner in which they'll do so. The number of apps that have sprung up around the royal wedding leaves you a bit flabbergasted. Broadcasting organizations, media houses, regular developers and just anyone, have put out a slew of apps out on the Apple store and on the Android market. And if you think these are a total waste of time, let me tell you that thousands seem to disagree as they download these apps and rate them high. One app, from Harper Collins, features the popular historian and television presenter, David Starkey. He's presented many riveting documentaries on the kings and queens of England and is wholeheartedly embracing technology today, making the transition to the app world quite happily. Starkey's and other apps feature timelines, family tree, British royal history and the entire story of the ten-year Kate and William romance. Other apps have a live stream of the event and one extremely popular app has a countdown to the final ceremony. The countdown started when they got engaged, by the way. Some apps have live wallpapers and beautiful images, constantly updating. There are some that lap up and relay every bit of trivia, from the dress to the car to the public kiss – nothing will be missed. The guest list and news on the many activities happening leading up to the event also make up much of the app content. Some of the apps are games, predictably. Apps also stream content from Twitter and Facebook updates on the subject and pick out interesting content from blogs. Not all of this is trivial and fluffy. The more attention the royal wedding gets, the nicer it is for brand Britain. This is a time when Britain is reeling under the effects of a faltering economy and the way it conducts itself through this event will be watched and probably admired, throughout the world. That can only help. I have a long time fascination for the British royals (specifically the head-chopping Tudors) but it's equally fascinating that apps can today spring up in response to events. Certainly, they'll have a short life, but that's fine; as long as they do the job they were intended to. They could, for example, develop in response to a disaster or a social cause. They could come up in response to political events, letting people participate in different ways. They do so on the social networks to begin with, but on smartphones and tablets, mobility adds a new angle of immediacy. As cricket fanatics, we are of course already familiar with cricket apps which come up in response to our national's obsession. Mala Bhargava is a personal technology writer and media professional. Contact her at mala@pobox.com and @malabhargava on Twitter
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The word 'inclusive' is now in vogue. Politicians give speeches about inclusive growth. Corporate executives talk about inclusive strategies. And business academics write about inclusive innovation.After a decade of excess and the sins of the financial crisis, it is not surprising to see interested parties take positions. Politicians, worried about the growing gaps between the rich and poor emphasise the need for growth to reach all segments of their nation's populations. CEOs of multinationals, eager for growth after the shocks of the crisis, see the rising middle class in emerging markets as the panacea for reenergising profits. Business academics, always searching for the next magical mantra, see potential in extolling the reinvention of innovation strategies.The business logic for emphasising inclusiveness is sound. After all, inclusive growth brings the bottom of the pyramid into the mainstream economy as customers, employees and intermediaries. Companies that are able to cater to and attract the loyalty of these emerging masses are laying the foundations of their future growth and success. However, creating and executing on inclusive innovation strategies has proven to be hard for corporations.Many executives wrongly assume that inclusive growth simply means making lower quality products at lower price points. This they argue is either against their corporate goals or simply incompatible with their existing capabilities and production processes. However, entrepreneurs in many emerging markets such as India and Brazil have shown that inclusive innovation requires a fundamental rethinking of business models. How else could they offer mobile phone calls for less than one cent a minute or perform high quality cataract surgery for thousands of needy individuals at around $25 dollars per head. In fact, the motto adopted by the National Innovation Council in India, inspired by the philosophy of Mahatma Gandhi is doing more good with less resources for more people.Affordability and sustainability have come to the fore of innovation and they will have to be achieved while maintaining or even improving quality. This poses a non-trivial challenge for even the most successful corporation. While business models will have to be rethought bottom-up, having the right mindset and culture are even more important. Business leaders will have to commit in unambiguous terms to making inclusive innovation part of their corporate goals. There has to be a fundamental desire to serve more people, in fact many more people, with relevant and affordable products as opposed to being content with serving more products at premium prices to current customer segments.The winners in inclusive innovation will reap big benefits in a changing world where the fastest growth in consumer spending is coming from the bottom of the pyramid in emerging markets. However, winning in this new arena will not be easy and cannot be taken for granted by incumbents.Are you ready for this challenge?The author is the Roland Berger Chaired Professor of Business and Technology at INSEAD, France. He has authored several books on technology, policy and innovation.Comments on this note can be sent to: mail(at)soumitradutta(dot)com
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Like many companies, Sony has had a few awkward moments in its illustrious timeline. However, nothing can compare to what just happened. Biggest BreachThe personal data of over 77 million PlayStation users is quite possibly in the hands of hackers. The user network has been down since April 19 and is now getting back on its feet. Reports say the data includes the credit card details of 10 million users, but Sony says it has no information "at this time" that hackers really have got to data which they say is encrypted. The upshot is no one is sure exactly what's happened with the data but there are sporadic reports of credit card infringements. Posts on hacker forums seem to indicate they can have that encryption for breakfast. All in a day's work. One amazing rumor has it that hackers actually offered to sell the data back to Sony. Bowing In ApologyWith perfectly bad timing, an apology from Sony has come right after the company launched its me-too tablet, making people wonder if it was deliberately held off until then. Most think it's too little too late. If Sony thinks a "sorry" means all is forgiven, they may soon find out otherwise in court with irate customers. The Japanese-style apology by Kazua Hirai, president and CEO of Sony Computer Entertainment and other Sony execs looks heart-warningly humble, but the press release mostly talks about how the company has itself been the target of a cyber-attack It even says this was an attack on the entire industry – meaning not Sony's fault alone? The press release focuses on the services that will be restored as the network limps back to normal. About the measures it's taken, Sony has this to say: "SNEI quickly turned off the PlayStation Network and Qriocity services, engaged multiple expert information security firms over the course of several days and conducted an extensive audit of the system. Since then, the company has implemented a variety of new security measures to provide greater protection of personal information." Damage ControlOne can't help wondering whether Sony could have, just as quickly, raised an alert for users to change or temporarily block the credit cards used on the network. Sure, this would have been an admission of the seriousness and intrusiveness of the attack, but an early alert would have been more responsible and concerned and would have earned more trust than talking about how extensive Sony's tests are right now. Investigations may help find out what happened and but they aren't going to re-secure those credit cards or prevent identity fraud. Complementary offerings and customer appreciation programmes seem to be winning back some customers, but a crisis like this one isn't going to be easily forgotten. Never Sleep On Security No one is hacker-proof – that much is acknowledged by everyone. How a company responds in a security breach of this proportion however, shows its values. If it had room to improve its security – and that's obvious now, after the attack – why didn't it proactively and intensively explore doing so before? As the online world gets no safer and customers trust their details to everyone doing business online, it's critical for companies to constantly look for safer ways and move quickly and effectively when that safety is compromised.Mala Bhargava is a personal technology writer and media professional. Contact her at mala@pobox.com and @malabhargava on Twitter
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Leadership within organisations is largely perceived to be within the purview of senior management. Leaders are essentially people who can think beyond their present circumstances, override uncertainty and translate challenges into opportunities. However, in the present scenario, things have changed and in order to stay ahead of competition or even retain and grow its existing customer base, a firm needs to command certain elements that differentiate it from the other players in the market. And these differentiating elements emanate through innovation — a mandate that is interestingly not restricted to any or a particular management level.Today it is not just enough for leaders (in every walk of life) to be effective strategists and decision makers. Apart from these trademark traits they also need to be good innovators - a characteristic that stands them in good stead as far as entrepreneurship is concerned. It is important to understand that one can pursue one's entrepreneurial abilities even while pursuing a career within an organisation - by creating processes, services and products that make a difference and enrich the value chain. In other words, entrepreneurship need not be restricted to those people who embark on enterprises funded by venture capitalists.Nurturing leadership qualities among the youth is an overriding concern for an emerging knowledge economy like India; particularly in view of the fact that more than half of the country's billion plus population is below the age of 25. If India has to truly achieve the status of a knowledge economy, then every working professional should be a leader and entrepreneur in his/her own right. The corporate fraternity, given its constant engagement with the principles and practices of leadership and management has a turnkey role to play in terms of achieving this mandate. Innovative ideas can spring from every quarter of the organisation. Today's corporate environment constantly contending with the dynamics of change (ushered by the cross currents of the global business landscape) and hence is in need of people who can go beyond stereotypical work profiles and carve their own career path. In other words it is in need of 'doers' or leaders as opposed to mere executors. Hence it will not be an exaggeration to say that today the traits of leadership are indispensable to the corporate world and are required of professionals at every stage of their career.Corporate world is also fast realising the fact that while many young minds are brimming with ideas they might not necessarily have the acumen to translate the same into workable propositions. One clear way of countering this inherent challenge is to invest in leadership training. It is of utmost importance that young employees are oriented with the macro dynamics of organisational functions so that they can think beyond stereotypical work roles. Such an orientation shall automatically translate into increased confidence levels and a heightened sense of professional responsibility and ownership that can in turn help in transforming them from being mere executors to 'doers/leaders'.It is not an exaggeration to say that today the traits of leadership are indispensable to every professional sector and are required of professionals at every stage of their career. When young employees demonstrate qualities of leadership it translates to a beneficial equation for their organisations. For instance, among other things a young leadership cadre can help in cementing collaboration among different functions because today's youngsters are essentially collaborative by nature. Also if invested with leadership young employees can usher true democracy and be instrumental in terms of breaking rigid and obsolete power structures.Ironically, while today there is a broad consensus that organisations have a sacrosanct mandate of nurturing young leaders there hasn't been much deliberation on specific approaches that need to be adopted in this direction. A right approach is one that takes into consideration the specific behavioural nuances and aspirations that are characteristic of the young. For instance today's youngsters are adept at multi-tasking and are less prone to compartmentalise their work and personal lives. They are also relatively better networked and more transparent and vocal about their views as compared to the previous generations. Hence instituting platforms whereby young employees can routinely exchange their ideas and opinions (among peers and seniors) on various organisational and industry topics/issues is one possible way of nurturing leadership. Management and training support can be extended to these institutions/platforms. Organising focused workshops, seminars and lectures in educational institutions are yet some other ways in which leadership among the youth in society could be fostered.The author is Corporate Vice President & Global Head - HR, HCL Technologies
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Worldwide, especially in the developed countries, the Toyota moniker stands for affordable cars, with models such as Corolla being hot favourites with customers. In India, though, its positioning has been more in the premium arena, partly because the Indian market was one that looked for far cheaper cars than even Toyota was making. With the Etios sedan, Toyota aims to change that positioning, ever so slightly, even as it gears up to increase its share in one of the world's fastest-growing automobile markets.The first time you see the Etios, the feeling is one of slight disappointment. Even though the front grille is signature Toyota, the car's build and design look average rather than stunning, though the body contours are evenly balanced. Clearly, Toyota is not out to win any design awards with this car. The small headlights, which don't have the sharp angular character of the Altis's or Camry's headlights, add to the disappointment. And the rear end bears an uncanny resemblance with the Logan. What the outer body does have, however, is perhaps what Toyota would be most interested in: the perception of size. Etios looks a seriously big car, though it is actually smaller than Tata's Manza and marginally bigger than Hyundai's Accent, though it certainly is much bigger than Maruti's Dzire. Where Etios falters a bit is in the fact that the body metal appears cheap and has a tinny feel, especially the boot which rings quite strongly when you close it shut. (BW Pic By Tribhuwan Sharma) The interiors certainly look better, particularly in the top-end VX version that the company provided us for the test drive. The dashes of red on the doors, seats and the gear knob bring a spark of brightness inside, while the seating space is definitely among the best in its class. The front windshield does feel a tad low, and if you're a tall driver, you almost feel you're about to touch the glass with your head; the steering wheel, too, is low, and could inconvenience tall drivers. The top-end version also has a couple of airbags, so it adds to the feeling of safety. While the inside looks bright, it cannot disguise the fact that the company has had to cut corners to bring the car's price down to an affordable range for Indian customers. The plastics look decidedly cheap, and the stereo system looks too plain vanilla for a model (VX) that ultimately costs slightly less than Rs 7 lakh.Looks, though, are one thing, and performance is quite another. The proof of the pudding, as they say, is in the eating. And accordingly, as part of our test drive, we filled up the car with eight people — two families, and many of them rather generously built — and lots of shopping bags, but Etios's 1.5-litre engine was more than up to the strain, and moved as effortlessly as it would if there were only the driver present. With 132nm torque (at 3,000 rpm) and 90 ps power, Etios has enough muscle in its body to take a heavy load. The fact that it is actually lighter than the Dzire, despite being much bigger and with a larger engine, gives it a much greater power-to-weight ratio, improving its performance. At the same time, pickup from a standstill position is also great, thanks to its engine size. However, the brakes, though efficient, did not feel as powerful as 'power brakes' on competing cars such as Dzire or Accent do. A fair amount of leg pressure was needed to bring the Etios to a stop.The boot, a humongous 595 litres, is big enough to pack all you need for a long weekend drive to the nearby bird sanctuary with your family. Considering that even the Manza, a bigger car than Etios, has a boot space of 460 litres, Accent has 380 litres, and Dzire has 440 litres, Etios is certainly your first choice if you are looking for a weekend touring machine that takes you a long way. The only problem is that unlike even much cheaper hatchbacks, Etios's back seats don't have a 60:40 split, wherein you can push down one seat to increase the boot space. Now, the question is, with 595 litres of boot space, do you really need more? And what is more commendable is the fact that despite have such a massive boot, the seating space for both front seats and back seat passengers are not compromised.So, if you're the type that drives with a fair bit of load — think lots of family members, lots of gear — on a fairly regular basis, and wants a workhorse of a sedan that can take the pressure without the need to look cool and snazzy, Toyota's Etios is the perfect car. It has a powerful engine, lots of seating space, even more space for bags and baggage, and delivers great mileage as well. Now, the only thing that's needed: a diesel Etios! Now, do we smell a winner there?
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Rejecting completely my recent writings arguing that corruption in India had a systemic basis (Systemic Scamming), the expat CEO of a Fortune 500 company let me know the other day that we had amongst us a large population of people who were in principle perverse about ALL laws! "Everybody knows that you are expected to drive on the left but any number of citizens will drive on the right. You will throw rubbish on the road when the bin is ten feet away. Standing in a line takes a few minutes more and you have all the time but you just won't. I can't persuade my employees to follow the simplest of company rules. Why can't people just comply?" I could feel his pain for sure but I could not sympathise with his condemnation. There is an entirely rational basis why Indians have so much trouble following laws in India. Let's start with the rather narrower subject of corporate compliance. The fact of the matter is that most global corporations set up their compliance laws in the obscure belief that there is something universal about compliance generally, a bit like the law: "Thou shall not kill". This is bunkum of course. There is no such thing as universal law or compliance because there is no such thing as universal history. At the end of the day, all laws are historically contextualized.As a general proposition, the laws we make, the rules we frame and the compliance we expect all flow from three interconnected factors. First, there is the state of the economy and the economic institutions that power it. Somalia doesn't need an insider trading law just as Norway doesn't need a law on inheritance of ancestral property in a joint family. Second, compliance rules flow from the objectives of the compliance regime. Trust me, Saudi Arabia doesn't want a competition law and Germany doesn't want agricultural land ceiling law. So far, all of this is fairly obvious: where our understanding of the problem hits a wall is when we fail to appreciate how the history of a people impacts their attitude to law and compliance. Indulge me in explaining what I mean.What does the briefest understanding of medieval Indian history tell us? Right to the British period, competing feudal states dominated south and central India. North India first experienced Afghan rule as early as 1206 and for the next 750 years, Persians, Turks, Mongols and Huns - all foreigners - rampages all over the northern plains. What makes this period interesting from our view point is that every dynasty, indeed every king of every dynasty, set up his own laws that lasted as long as his life, or more frequently, his mood. In this unstable world of ever changing opaque laws and rule by executive fiat, what do you expect will accumulate in the collective subconscious of the ruled? Can anyone argue that medieval Indian kingdoms were anything but predatory? Do we expect prey to sympathize with the predators, or their laws?Okay, all this is medieval alien stuff you may argue: modern Indian law started in the British period and we have had 250 years to get used to it. Not so. It's not as if the British empire in India did any better than the Mughals or their predecessors. There are studies aplenty to show that the East India Company maximized profit and inflicting misery. The Great Bengal Famine of 1770 was no natural disaster. Peasants were forced to grow "cash crops" to feed British industry rather than food. As a result, 10 million people - that is one in three - died of hunger. Large areas were depopulated and returned to the jungles for decades. Direct British rule since 1858 did not create utopia. India exported primary goods and imported manufactured goods. Domestic industry was decimated and this too is well documented. Why would Indians trust British laws, given who they benefited? Many of those same laws are still on the statute books, or hasn't anyone noticed?Just so you don't think I am xenophobic or anti British, it's not as if we did any better after 1947. Independent India inherited British institutions, governance structures and bureaucratic attitudes. Socialism sought to control the commercial impulse of its people, creating the quota-license-permit Raj. In the context only of the attitude to governance, how were the British fundamentally different from central Asian warlords and how is post-independence India different from the Government of the British Indian dominions? Why would we expect Indians to identify with their current colonizers or the laws they create? The essential upshot of 800 years of Indian history shows us that Rousseau's social contract theory has no application in India because there is no "consent of the governed". The Government and its laws continue to be viewed as predatory. A good example why would be the absence of any relationship between tax and service. Just to make a point, I live in Gurgaon and all around me are people who pay some very serious taxes - each enough to pay the salaries of more than a few senior civil servants - but they don't get health care, pension, social security, police security or infrastructure in return. Indeed, they are excluded from the very Government clubs, quotas and facilities that their tax payments fund. There is no concept of "tax payer's money". No one will ask them how their money gets spent. While we are on the subject, don't tell me that they can vote in their representative because we all know how parliament functions too, or doesn't. I may understand why this must be so, but a great many Indians do not. I don't blame them.It's no different for business. I fall about helplessly holding my belly and laughing till I cry as I watch corporate honchos mouth platitudes about compliance and probity when everyone knows that if you don't pay large sums of money to the provident fund inspectors and the state electricity boards and the multitude of tax guys and who else besides, you are going to get hit so bad you'll have to fund an institute to train top flight shrinks just to treat your post-traumatic stress. For the average Indian, the government is a school yard bully who steals your tiffin every other day. In this country, the worst thing that can happen to you is not the mafia; it is a government on your case. Stick around and see what a rabble rouser can do to someone like the Tatas in Bengal.That is not the worst of it. What does compliance get you? Businesses in India seem to thrive where there are no laws, of which cross border outsourcing is just one example. When the government smells money, it comes over and says "okay, just to make sure you behave as a responsible member of society, we are going to set up a regulatory structure which we expect you to comply with". Lofty isn't it, but what does it mean in practice? It means crazy rules that get interpreted according to the mood of the interpreter, and it means inspectors, lots of them, with all kind of pre-emptory powers to harass and condemn, accuse and prosecute. This monkey circus is backed up by an ascorbic media which feeds on churning out contrived Infotainment that can destroy your reputation, and your business. Out here in the badlands, regulation is extortion by a fancy name. The wise man would say that the best thing you can do in India is live well below the radar screen. Lots of people could own Audis and BMW's in India but it's in less than twenty towns that they can be sure that they won't be subject to extortion demands by their very protectors for their lack of modesty. So to summarize, the Government and its laws are controllers, not enablers. Compliance is in a sense a question of succumbing, not cooperating, leave alone pursuing one's civic duty. Many laws have no general application public purpose to them at all. Following the law is sometimes the worst option because it can quickly erode value in your business, or your life. Every compliance invites additional scrutiny, every compliance return is an invitation to an additional show cause notice. If you want to survive, your best bet is to not be noticed at all and if you are, to try to stay one step ahead. It is a jungle out there…and the lion king is contemptuous of you. Doing things the way the lion king says you should is unlikely to do anything for you. It works for the lion though!The author is managing partner of the Gurgaon-based corporate law firm N South and author of the pioneering business book Winning Legal Wars. He can be contacted at rcd (at) nsouthlaw (dot) com
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Let us begin by understanding what has been done for Small and Medium Enterprises in the central budget 2011-12.The honourable FM devoted two paragraphs of the entire budget to the developmental schemes for SME's• For SIDBI, the finance minister allocated 5000cr for refinancing incremental lending by banks to MSME enterprises This has been raised from R4,000 crore in 2010-11.• R3,000 crore has been allocated for Nabard to benefit 15,000 weaver cooperative societies and 3 lakh handloom weavers.• The khadi and village industries segment, which receives around half the funds allocated for the ministry, saw an increase in their outlay • The MSME segment, which gets less than a third of the ministry's allocations, saw its budget allocation grow by a respectable 12.9%• Marginal increase in the allocation for coir industries has also been provided in this budget• The allocation for the northeastern region increased by 12.3%. • The National Small Industries Corporation saw its allocation surge by 110.4% to a substantial R705 crore.A single glance would suggest that a lot of sectors have been addresses but going deeper into the layers would expose the truth.Allocations has been focused on sector-focussed institutions like SIDBI and NABARDFor the Khadi and Village industries the allocation has increased by a paltry amount of 3.3% only. Similarly the allocation increase for the coir industry is 1.7% which has been also been loaded with export cess. This would more than nullify the miniscule increase in allocation.Few of the gainers were The north-eastern sector which saw close to a tenth of the total budget allocation. This would be a great boost to provide impetus to a region which needs that extra push to come at par into the mainstream.The NSIC which got a substantial increase of more than 100% in its budget allocation would surely help micro and small enterprises. The marketing assistance schemes on NSIC would further ensure support to market the products in the domestic and international markets. Not only this, the corporations performance and credit rating scheme ensures that the micro and small enterprises are subsidised by the government to the extent of 75% (up to a maximum of R40,000) for getting themselves rated for performance and creditworthiness by empanelled accredited credit rating agencies.However there is a lot that needs to be done and mere scratching of the surface reveals that. The often heard slogans like "Power to SMEs", providing "real help when businesses need it most" seem to be mere slogans. Being on the side of "go-getters" may be a rousing rhetoric from our current government but there are no concrete and sizable actions supporting it.Whether it is the moving of the service tax from cash to accrual basis or providing a solution for bad debts in SME enterprises, none has not been addressed by the FM. This would directly impact the liquidity crunch in organisations which do not have much liquid assets anyway. And to top it all the FM had nothing to offer in terms of cheaper loans either. The highest employment generator does not get any rebate on interest rates. If the agricultural sector can get impetus by getting loans at 4%, the SME sector should have at least seen some decline in the interest rates. Access to finance is, in some instances, harder than ever to obtain — especially if you are starting up. In addition, the cost of employing staff is due to increase in April this year and the full effects of the spending cuts are still on the waySetting up of a special fund for the micro enterprises for exclusive lending to this sub-sector; introduction of a public procurement policy that mandates government and public sector units to reach, in a stipulated time period, a target of at least 20% of their annual volume of purchases from micro and small enterprises and the need for earmarking additional public spending of around Rs 5,500 crore over a five-year period, to specifically target deficiencies in the existing infrastructure and institutional setup do not seem to have got the attention they deserveThe budget, it appears to be just a weak attempt to somehow balance instead of boldly taking the lead to address the imbalances. There is a crucial need to develop a think tank, composing a good balance representation from various sectors within the MSME's to suggest a road map to the FM. The government has to act quickly, decisively and significantly by introducing hard and fast measures that will assist the globally referred ‘fuel to an economy' organisations. The scope is more…much more..
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