As a sector that brings a considerable amount of FDI and employs 31.45% of India's employed population (as of 2018), the services sector is said to contribute 55.39% to India's Gross Value Added (GVA) at current price in FY20. However, the recent pandemic and the resultant lockdown have lent a major blow to the SMEs/ MSMEs and the start-up businesses, and more so for the service-focused enterprises. While the new 'Atmanirbhar Bharat Abhiyaan', FM Nirmala Sitharaman has announced a lucrative package of INR 20 lakh crore, the initiative has also redefined the MSMEs segment parameters and merged the manufacturing and service sectors into terms based on turnover, namely as 'Micro Units' for less than INR 5 Cr. Turnover, 'Small Units' for less than INR 50 Cr. Turnover and 'Medium Units' for less than INR 100 Cr. Turnover.
This merging of enterprises and the re-assignment of businesses based on turnovers, has further made it difficult for service sector enterprises to leverage the benefits of the economic bail-out package, as the specific challenges and needs of the sector continue to go unnoticed, and even maybe lost as they try to compete for attention on an unequal playing field. At a time of crisis when the sector was in dire need of special focus and customized solutions by the government, they have been merged with and lost amidst the pool of Medium, Small and Micro Units re-assessment of business, based on turnover. This needs to change, especially because of the following key differentiators of the service sector enterprises:
Perception Driven industry
This story is from the October 2020 edition of SME World.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the October 2020 edition of SME World.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
Important Things To Know Before You Start Trading In Stock Market
Given the uncertainty around the stock market, trading in shares can be a terrifying thought. At the same time, investing in the stock market indeed comes with a risk, but it is also an efficient way to build wealth if done in a disciplined manner. Several failure stories grip the market, but the commonality in all these stories is the uninformed decision-making process. People who understand the market will never face heavy losses. Therefore, before you start your trading journey in the stock market, here are some essential things you must know.
Your Mental State Determines Health And Growth Of Your Business
Don't we all wish to be in full control of our mental state? The brain continuously sends signals to our consciousness that affects how we behave and react. And so, it's important for entrepreneurs to understand this because it has a direct impact on the growth of their business. Entrepreneurs have to take care of their mental state every day to get sustainable results.
Life Insurance Claims: Five Mistakes to Avoid
The utmost importance of having life insurance plan has been more clearly evident than ever before, owing to the pandemic. With the unexpectedly high death rates in the past year, the pandemic has conveyed the message that life is unpredictable, so making the right choices is always ideal. One such right choice for yourself is an optimum life insurance plan that can cover your family's needs in your absence or can even be a great financial support post your retirement age.
In-vehicle Infotainment Market Set for Big Growth
Kulshrestha is an experienced executive with a demonstrated performance in consumer electronics industry, insurance sector and manufacturing industry. His major skill sets include company management, business planning, business alliances, new business development, and marketing management, market planning market analysis, strategic partnerships and pricing strategy. A strong business development professional with an educational qualification focused in risk management and IT from BIMTECH, he has a rich work experience of 24 years history in various leading brands. Some of the leading companies he has worked with are Carrion Aircon Ltd., ICICI Prudential Life Insurance, LG Electronics India, Electrolux, OSRAM and currently in Pioneer India Electronics. Mr Gaurav also has an expertise in Philately, Photography and Numismatics.
5 Must Have Tech Innovations for Small Businesses to Boost Productivity & Profits
Leveraged Technology
Lockdown Lessons: Business Contingency Measures Can Help Get Over the Crisis
The nationwide Tlockdown in the past two years has severely dented business and the economy, and micro, small & medium enterprises (MSMEs) were the worst hit. In April this year, the Confederation of All India Traders estimated that the daily business loss due to lockdown in Delhi is around INR 6 billion. At an all-India level, this translates into around INR 300 billion, considering full and partial lockdowns, night curfews and other forms of restrictions.
uTrade Solutions Enabling Faster, Safer and Inclusive FinTech Space
Kunal Nandwani Co-Founder & CEO, uTrade Solutions
Transition To Online Marketplaces And Malls
Generally, consumer habits and trends follow an evolutionary curve. But the global pandemic changed all that with one fell swoop. Consumer behaviour flipped very rapidly and shoppers shifted from offline to online purchases in a matter of weeks. The Covid-19 pandemic became an inflection point as consumers suddenly experienced the safety and convenience of online shopping.
SMERA Aims to be the Most credible Voice for the MSME sector
SMERA Gradings and Rating is a subsidiary of Acuité Ratings & Research Limited and is dedicated to providing SME ratings & grading services to MSMEs. The company launched in 2005 as SME Rating Agency of India Limited, a joint initiative of Small Industries Development Bank of India (SIDBI), Dun & Bradstreet Information Services India Private Limited (D&B) and leading public and private sector banks in India. SMERA is possibly world's first SME-focused rating agency. Intending to facilitate easy access to finance for SMEs, SMERA focuses on promoting transparency and reducing information asymmetry.
SMEs Need to Adopt Technologies that Future-Proof them against Unanticipated Disruptions: Arun Meena
RHA Technologies is the brainchild of IIT Kanpur graduate, Arun Meena. The organisation for the first time in India enables the unique trust dependent outsourced tech co-founder offering for Start-ups and SMEs. In addition, the organisation also offers the traditional model of outsourced product development to MNCs and startups. It also provides an empathetic and synergistic technology consulting, digital transformation, and technology services and solutions to the founders of start-ups and SMEs worldwide. Thus, enabling the client organisations to realise and strengthen their innovation, differentiation, valuation and market offering.