ICICI Bank has recently launched a dedicated centre in Bengaluru to provide business solutions exclusively to start-ups and small business owners in order to offer them hassle free services, all under one roof. This centre has been designed to cater to the growing and varied needs of the MSME segment. Funding & Business solutions now available more easily for MSMEs and Start-ups in Bengaluru THE PROBLEM The complex procedures, lack of proper guidance, confusion regarding documentary requirements and cumbersome processes of appraisal and disbursement in traditional banking channels act as a deterrent for MSMEs looking to raise funds for their working capital requirements. THE SOLUTION Mr. Sandeep Batra, Executive Director (Designate), ICICI Bank along with Mr. Viral Rupani, Retail Business Head — South, ICICI Bank inaugurated ICICI Bank’s first centre which is designed to offer solutions to varied needs of the MSME segment. This is a first of its kind initiative by ICICI...

Classification of MSMEs: As per the MSMED Act 2006, the Micro, Small and Medium Enterprises are divided into two classes: 1.        Manufacturing Enterprises: The enterprises which are engaged in the manufacture or production of goods pertaining to any industry (as per the list appended as Annexure I), or employing plant and machinery in the process of value addition to the final product having a distinct name or character or use. 2.        Service Enterprises: The enterprises engaged in providing or rendering of services (Industry classified as per the list appended as Annexure I). Annexure I: List of Industries The limit for investment in plant and machinery / equipment for manufacturing / service enterprises for MSMEs is as below: Debt Funding for MSMEs: Every business, Micro or Small or Medium or Large, requires funds at different stages of the business cycle, to grow or to continue ope...

-           Alastair Pavrey Many entrepreneurs find themselves in a dilemma when it comes to raising funds and deciding between equity and debt. There are lot of common concerns regarding equity with respect to losing control and giving up equity stake which leads them towards debt funding, ignoring the risks inherent with that strategy. Although sometimes viable and effective, taking on debt at the wrong time can be a death wish to most startups and put them on a path to failure. Most importantly, many MSMEs are not very enthusiastic and aware of the various other financing options available. Private equity funding from a credible investor has many positives for MSMEs such as increasing the Net worth and strengthening the books, guidance to better endure the volatile business environment, flexibility in structuring return of investment, access to high-level intellectual capital, etc. Further, raising private equity is easier as com...

By    Alastair Pavrey The Union Budget and the Monetary Policy have made February an important month for MSMEs, with various policies and measures announced to boost the sector. The Government and RBI together hope to make the sector as a catalyst to the growth of the Indian economy, through key structural reforms. The Union Budget 2018-19: Finance Minister Arun Jaitley presented the Union Budget 2018-19 on February 1 st , amidst the backdrop of the current economy recovering from the twin shocks of Demonetization and rollout of the Goods and Services Tax (GST). The budget provided major benefits to the agriculture and rural economy with a focus on employment and infrastructure creation. The MSME segment also came out as a winner with some important and helpful policies, in addition to steps towards a more inclusive economy. The government has increased spending which will boost consumption, production, and investments. The highlight to the budget...