MSMEs IN INDIA.

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In 1969, India nationalized the banks to pave ways for directional lending to agriculture and MSMEs.

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Now, 53 years later, the assets created in MSME sector will be in range of 300-400 lac crore as the definition was based on plant and machinery.?But if we take real estate and other infrastructure facility, the assets will be huge.

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It employees 11 to 12 crore people.?Both state and central government wanted to create jobs for youth so promotion of MSMEs was prime focus but with global linkage, now our entrepreneurs have to look to world as market.

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Many MSME’s has become critical in supply chain for various sectors like automobiles and with PLI scheme in 14 sector, this sector will become more important.

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PAIN POINT:

Our MSME’s are not operationally efficient as they have looked only to Roti, Kapada and Makaan and basic purpose of creating world scale MSME’s has been diluted.

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OUR SOLUTION:

We have looked into how to make them more efficient and identified two or three solution.

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1)?????We found that there is no awareness about proper resource allocation.?So we came up with BABAGIS (Business Analytics Business Augmentation Growth Information System) where 52 various ratios can be found from their Balance Sheet and Profit & loss statement which can be given both numerical and graphical form.

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When compared with their past 3 years or more, will make entrepreneur’s to identify and optimize their available resources and this can be achieved without large capex.

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5% better utilization of resources for next 3 years can create 3 to 4 crore low skill jobs.

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This will also help India to have better growth opportunities in villages and towns.

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Back of cover calculation, shows that it will contribute 2.2% to India’s GDP by consumption and taxes at 136 lac crore GDP.

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2)?????Hard skill and Soft skills: - When a workers is hired, it will be based on their hard skills.?But one they reach some critical mass, soft skills becomes critical which can lead to

·????????Better team work.

·????????Improved interpersonal relation.

·????????Quality improvement.

·????????Innovations.

·????????Reduce production planning jerks and many more.

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Towards this, we are developed questionaries’ covering various aspects and we will measure changes in hard skill and soft skill every quarter to capture changes which will improve productivity by at least 2 to 3 % per year and develop strong culture, aligned with Vision, Mission and Value system.

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3)?????Digital Transformation: - After Covid, it has necessitated to adopt digital transformation at faster rate but it is found that top down approach does not give optimal results while organization has to adopt so in many MSMEs, we will have to adopt strategies in such a way that they derive optimum results.

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With cloud, AI / ML, AR/VR, 3D printing block chain, data visualization and meaningful interpretation, IOT and IIOT industrial automation and many more technology can be adopted, as per the capacity.

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All the above can be adopted in various measure to get optimum results.

How far we have come:-

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1)?????Awarded by HYSEA as one of 10 top hot start-up.

2)?????Signed MOU with Government of Telangana.

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Where we would like to be in 5 year:-

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1)?????We would like to analysis 20 lacs MSMEs for free balance sheet analysis with branch network, digital marketing seminars etc.

2)?????We would like to reach 300 units in Hyderabad for HR intervention.

3)?????Digital transformation study the above 300 units for progressive adoption of digital technology.

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Regards,

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Nilesh Desai?

Director,

SMEA Analytics Pvt Ltd

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Mail us??????????????????: [email protected]

Website ????????????????:?https://www.smeaanalytics.com/

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