SME lending in India has been a neglected target market since the independence. Though, government tried to propagate SME lending using regulations and incentives, however, somehow beneficial impact was never visible and SME lending always remained a poor cousin to other activities of lending institutions.
It needs to be initially identified what the current constraints are existent for the SME lending. It is recognized that Government should take initiative to operationalize SFCs in big Scale, and professionally run rather than bureaucratically. Subsequent sections focus on how SFCs or financial institutions need to first evolve a strategic focus on the sector by understanding the client & his needs. The SFC needs to re-engineer the SME lending value chain with the intention to develop a long standing relationship with the SME clientele set. The modifications needs to be executed across the critical areas via marketing execution, product development , streamlining of operations through internet integrated delivery channels & application of advanced risk modeling techniques.
As the relationship evolves over time, the firm is able to indulge in relationship lending due to reduction of information asymmetry which lowers supervisory costs & increases account profitability for the firm. Through retrained & empathetic staff dealing with SME clients, the interaction level deepens. Finally the SFC by donning the role of a Financial Consultant transforms from a lending institution into a one stop solution for all the financial needs of the SME client.
At the end the concept of Fund Financing is also suggested as an approach. The focus in the further studies has been made on traditional sources of Financing as SIDBI, is coming out with processes to replicate and innovate the present schemes to suit SME needs.
This article is authored by Mukesh who is an alumni of Indian Institute of Management, Lucknow. He has been associated with Crisil and has been recognized as a young thought leader of India.
There is a saying that toomuch of anything isnt good. Coming to thing about it, different people have different needs. But irrespective of whether someone is a lawyer or criminal, a housewife or a CFO, there is one common need which is as defining as the need for food or clothes and that is Recognition. Everybody wants to be recognised be it their work, their way of displaying love or even in silly sibling rivalry. And the strange thing is, unconsciously, what someone wants for self, they start doing the same for others. Its like an indirect signal of the hidden desire. Again when someone is denied of something for too long, something which they consider is their rightful want, they start shying away from it and often do the opposite of what they really want. Yet most people wander why they don’t get back the worth of what they are giving to others. Most people who work too hard in office complain that they are the ones who handle all the pressure while the guy who lazes around has the bonds most with the boss. Or while giving away everything for the sake of love, what most get back is distance. I guess what most people don’t understand is that the law of demand and supply work beyond economics. Whenever we give too much into something, the demand from us automatically decreases. I know its horribly unfair, but its true at the same time. By making too much of us available, we don’t let the other person miss us. When a boss gets more than what he wants for, his expectations keep on increasing, and he just knows that he has someone who can complete everything even without directions. This is why one of the chief reasons we shout first on our mom the moment anything goes wrong, while we cant do that with someone else as we know that mom is always there for us irrespective of how we behave. But if we could always control the way we behaved, then there wont be anything natural with our behaviour. We would be like human robots with just the right smile and the right words. We are the way we are by birth. But at the same time after learning the same lesson repeatedly, its better to check the way we act at times, rather than saying “ this is the way i am..cant help!!!”
Hope i didn’t sound too political.
Signing off for the time being, catch u later frds!!
For all those who follow Google trends, this would barely come as a surprise. From a research done by a group in the United States, it has been disclosed that the following articles have been the source for the hottest search globally in 2010 and is also expected to reign till mid 2011 to a large extent. The group analyzed the searches done in Google, Yahoo, Bing, ASK and AOL Search. These collectively account for 99% of the total search engine usage and are ranked as the top search engines in order, as per usage.
What was actually less anticipated was the lower rankings of the FIFA world cup, as compared to few other unexpected rank holders.
And finally, without any more ado, we present you the top 10 searched topics in the internet in 2010.
2. Malema Julius
5. Nelson Mandela
6. World Cup
7. Cape Town
10. Kaizer Chiefs
This Article is authored by Jake Mazan, who is a guest author at Business Fundas. He is a Senior Research Analyst cum Manager at NG-Online News.
Apple has surprised us with many innovative product launches in recent times, some more useful than the other. Steve Jobs is known for pushing his teams to innovate beyond barriers. How about something like this for the executives so that they can work while on the move? Whats up next Stevey? Just you wait and see
Business Models are crucial for the success of an enterprise or even a startup. So what do you need to focus on while building up your business from scratch? A Business model or a Business Plan (B-Plan) helps you to plan this properly.
- What are the firm’s core capabilities?
- How does the firm deliver value to its clients? How does the network with its partners/collaborators (value chain) add to its core competencies. How does the value chain model collaborate with the firms current strategies?
- What is the cost structure in the business vis-a-vis that of the firm?
- How is the value proposition unique and sustainable in the long run?
- How does the firm manage its distribution channels and relationships / liasons with the customers?
- How is the targeted customer contacted, acquired and retained?
- What are the sources of revenue and the structure of the same?
- How does the vision/mission statement adhere with what the firm is doing now and what it is planning to do in the future.