An organization commences its journey with a Vision & Mission while Strategy & Planning lay the foundation to achieve the envisioned objectives. Vision is the reflection of promoter’s dream and ambition in regard to the growth, stature to be achieved and the very purpose of his enterprise. Vision is shared with the team and important stakeholders so that every one could support and / or work towards its realization. Vision acts as the base line for measuring performance of an enterprise. An enterprise which doesn’t define its vision and mission could carry the risk of making journey without knowing the destination. Vision need not be static. It needs to be reviewed and redefined should the market circumstances so demand.
Strategy & Planning are the most important tools that help us achieving the vision. Strategy takes into consideration the given resources, stakeholders, situations, time-lines and plans the foregoing to achieve competitive advantage in the focused market. Strategy should invariably aligned with the vision of the organization so that it achieves the envisioned advantage, targets and growth while fulfilling the promises accorded to stakeholders.
For example, an enterprise should address the following aspects towards defining right strategy.
- What is the Vision of the organization?
- What is the Mission of the organization?
- Who are the collaborative entities? – Partners, Associates, SMEs
- What is the level of dependency on stakeholders, regulatory provisions, political conditions, cultural aspects and specific technology or expertise?
- Who are the competitors? What are their strengths & weaknesses?
- What is the market, who are the customers and what are the present gaps and what are customer expectations?
- What is the USP offered by the organization?
- What are the identified measures towards fulfilling promises made to stakeholders?
- What is the brand statement and brand vision?
- What are the short-term and long-term targets w.r.t. achieving business growth, market competence, total viability?
- What are the operational measures in carrying business operations?
- What is the plan to achieve the strategy?
As could be seen from the above, Vision and Strategy covers the total chain of activities, processes generally adopted by an organization. The difference, is that many organizations don’t go in the structured way living sufficient scope for laxity in performance, discontentment among stakeholders, and means to measure the value achieved. This is mostly visible in certain family ruled businesses where the promoter-owner goes in the most traditional and conventional way just reckoning the profit value achieved. It goes well in the long run if the business owns a proprietary product in the market or extends exclusive services to stakeholders.
But business is not just meant for profit making. The very essence of business is value creation to all stakeholders. Hence, it is essential that an entrepreneur start his journey with an intent to create value to stakeholders including the very society which is giving him the opportunity to earn money, name and fame.
The scope and approach of marketing has been an ever evolving affair ever since the Online / Internet era came into being. Economic globalization is the other contributing aspect where service providers or product manufacturers had to come up with ingenious measures to promote their products and services. Among the other measures, collaborative marketing and online presence have taken the priority slot owing to the flexibility, dynamics and cost effectiveness they bring in along.
Collaboration in the areas of equity, technology, research, marketing, human expertise and branding are some of the options in vogue. FDI is the regular activity in developing economies. This is highly evident in India where investments have been made in various sectors like manufacturing, retail, realty, hospitality, health care and in many other areas.
The glaring difference, however, has been that the collaborative development is restricted to major industries or corporate businesses because of the financial strength, market reach and human expertise they possess.
Entrepreneurs in SSI & SME sector too must study this trend where they could showcase the advantages to prospective collaborators in the matters of technology, research, manufacturing capacity expansion or service competence. This in turn will help them in realizing big dreams taking the counter advantage of collaborators who could bring in equity, global reach and process excellence into the organization.
The major challenges faced by SSI & SME sector have been credit, marketing and technical know-how. Going for bank credit towards market expansion or branding may not be a viable measure where collaborative growth is possible. The SSI & SME sector must focus on building online presence while working for collaborative marketing so that an early growth is possible with promising future.
The following are the details of financial assistance available under PMEGP.
|Industry||Eligible loan||Promoters equity||Subsidy||Loan given by||Security|
|Manufacturing||INR 25.00 lakhs||General Category:
Special (including SC / ST /
Urban : 15%
Special (including SC / ST /
Urban : 25%
|Any Public Sector Bank or Private Scheduled Bank at their discretion based on the project viability.||Nil up to INR 5.00 lakhs
Covered under CGF above INR 5.00 lakh and up to INR 1.00 crore.
Under CGF no security required up to INR 1.00 crore.
Banks at time might demand depending upon the merits and demerits of the project.
|Service||INR 10.00 lakhs|
Required enclosures along with application:
- Project report of the activity
- Attested copy of OBC / ST / Minority / PHC / Ex-servicemen certificate.
- Attested copy of the educational qualification, experience, training certificate if any.
- Attested copy of EDP training [for a minimum period of 2 weeks] certificate, if any.
- Affidavit in bond paper costing Rs. 15/-
- Consent letter from Bank, if available.
- No objection from Gram Panchayat, if applicable
- All the loan applications received under PMEGP scheme will be placed before the District Level Task Force Committee [DTFC] under the Chairmanship of the Deputy Commissioner of the concerned District from time to time.
- The DTFC is conducts personal interview of the applicants and recommends the deserving cases on the basis of the viability of the project to the concerned banks.
- The recommended cases will be sponsored to the concerned banks for consideration of finance under the captioned scheme.
- The bank will sanction 90% of the project cost in case of General category and 95% of the project cost in case of Special category of beneficiary / institution and recommend their cases to the KVIB for arranging 2 weeks duration compulsory EDP training.
- KVIB will arrange EDP training. Once the beneficiary undergone EDP training, the bank will disburse full amount suitably for setting up of project.
- Once the 1st installment of bank finance is released, the bank will submit margin money claim in the prescribed proforma [which is 25% of the project cost in case of General category and 35% of the project cost in case of Special category] to the designated Nodal Banks.
- Once the margin money is released in favor of the loanee, it should be kept in the term deposit receipt of 3 years at branch level in the name of the beneficiary / institution. During this period, no interest will be paid on the TDR and no interest will be charged on loan to the corresponding amount of the TDR.
- The margin money component [back ended subsidy] will be credited to the borrowers loan account after 3 years on the basis of 100% Physical Verification Report of the said unit.
- 100% Physical Verification of the actual establishment and working status of the units, setup under PMEGP will be done by KVIC.
May also check for Credit Guarantee Fund scheme details in the other posting.