Global opportunities for Indian Small Businesses, Startups and MSMEs
Satish Kota
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In today's COVID situation, the pandemic has created multiple obstacles for Indian MSMEs in terms of the running their business, its revival and restructuring or looking at new opportunities that they may have to explore for business continuity. The pandemic has forced MSMEs to reinvent their business and look at innovations to survive. Many are suffering either in terms of Fund Requirement (Finance) or Getting Orders / Customers (Marketing)
A few ago, the Finance Minister of India Smt. Nirmala Sitharaman announced a grant to the tune of 3 lakh crore rupees. This has given a relief to businesses and should be used as stepping stone for Indian MSMEs, Startups and Small Businesses to look at new markets or global markets to promote their business or ensure their business continuity.
In today's date, Globalization is swapping every possible corner of the globe steadily yet gradually, it is not possible for any business to be away from this and Globalization will come and hit hard on anyone who is not ready to adapt and accept it. Internationally it is expected that by 2030 around 600 million jobs would be needed. But these requirements can only be satisfied by MSMEs and Small Businesses. MSMEs account for the majority of businesses worldwide and are important contributors to job creation and global economic development. They contribute to 90% of businesses, 50% of employment and 40% of GDP of the world. Internationally it is recognised that the MSMEs are the backbone of any country.
Opportunities for Indian Businesses Internationally
While the world has 251 countries and territories (according to UN), about 193 countries are part of the UN. Though these are geographically divided into 7 continents (including Antarctica) with respect to doing business, the world could be actually divided into 10 Regions based on culture, economic viability, kind of people, ease of doing business, etc., Once an Indian business understands these regions, it becomes easy to plan engagement with countries in these regions
Regions Explained
From East to West
Pacific Regions: The Australian Continent with Australia and New Zealand as primary countries with few small island nations. These countries are well developed with high human index and reputed countries.
ASEAN region: The South-East Asian Countries which have a Free Trade Agreement created under the Association of South East Asia Nations.
SAARC Regions: South Asia Association for Regional Cooperation comprises of neighbours of India to promote and improve the economic, social and cultural development of the region.
CIS Region: The Common Wealth of Independent States is the association of all the countries that were part of the Old USSR or the Soviet Union. These countries were formed when the Soviet Union broke in 1991.
Middle East Region: This oil and natural gas rich region is one of the wealthiest regions of the world and has a high trading activity with India.
Africa: The most underdeveloped, underutilized and unstable region of the world. Most of the countries were either British or French Colonies. Still Mining and Agriculture are the primary industries in this region.
Eastern Europe Region: A Sandwich region of Developed Western Europe and the Communist (previously) Russia. This region was controlled and massively influenced by the Soviet Union after World War II until the collapse of the Soviet Union. Due to this, doing business in this region has its own challenges. However many of the countries in this region have joined European Union lately.
Western Europe Region: The Most Developed Region of the World with High Human Index, Most Reputable, Ease of Doing business. Most of these countries are part of the European Union and they influence the world. Very high on Technology, the region allows enormous opportunities for Indian businesses to explore this region.
Latin America: This region comprises of Mexico, The Central American Countries and the South American Countries. The Region is primarily the colonies of Portuguese and Spanish has its own opportunities and challenges due to internal disturbances and economic stagnation.
US & Canada: The most developed and most influential region of the world. The US and Canada form the 2 countries of this region. With Highly Reputed, Good Ease of Doing Business Ranking and High Human Index forms the perfect opportunities to do business for Indian MSMEs.
While we understand the regions, It is important that Indian Business Owners need to know what can be achieved in these countries. Though there are 193 countries, one cannot achieve everything in every country. Also, not all industries can thrive and not all types of businesses work in all regions. The information one needs to know about any particular region is
- A little bit of an Economy of the region
- The prominent countries in that region where one could start doing business
- Understand India's Foreign Relations Policy with the region i.e. the kind of trade agreements with the associations or with individual countries
- Know the Status of MSMEs in the region as most business engagements happen with MSMEs of those regions
- Assess the type of Opportunities in these regions
What's Next?
Now that you know the Regions and the Opportunities, your next job is to understand more about the activity. For this IndiaTIES has embarked on an activity called #Impact10kMSMEs to support 10,000 Indian MSMEs to look into new markets or international markets for business continuity. Hence we have made 2 videos Global Scenarios for Indian MSMEs in Asia and Australia and Global Scenarios for Indian MSMEs in Africa, Europe and Americas. These videos will give detailed information about the regions and what opportunities lies in those regions. To participate and take benefit from the programme you can register with your details here.
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Your analysis is good. In the view point of the industry, 3 lac collateral free loan will not be of any use, because there is a rider added to this so called loan. So nothing much is gone out of government treasury. The best way to encourage MSME will be, continuing the above package which may help few MSME and many Medium companies, government must work on setting up state owned MSME or allow new entrepreneurs providing them long term loan as seed money including working capital. Buy back their produces till they establish themselves in the market under existing PMA schemes. My opinion may look difficult but it is not impossible. Government only requires will to help MSME.