Month: October 2022

Branding skills

Competitive analysis

To do this well, brand managers look at all the messaging and historical data from a company, their main competitors and other companies in their niche.

The idea is to map the landscape around the client, Marom said.

This is a lot less work in an emerging space (like NFT marketplaces) than in a huge, historic space (like department stores). But it still takes more analytical skills than might meet the eye.

The best brand marketers analyze audience data and communications from two main types of competitors:

Direct competitors, whose products are similar to yours. Think Calm vs. Headspace, Rosenberg said.

Indirect competitors, whose (very different) product solves the same problem yours does for your target audience. An example from Rosenberg: Headspace vs. CBD companies.

This is the most analytical part of brand marketing  mapping a market, and spotting holes and it takes a pro to do it well.

What happens if your brand marketer isn’t up to speed on competitive analysis or marketing analytics tools? You could end up looking and sounding like everyone else.

Sometimes, brands do this on purpose “but, in my opinion, [it’s] lazy at best… and usually much worse,” Rosenberg said.

Another downside of shoddy competitive analysis, according to Sullivan: “miscommunications with consumers that make it harder for brands to earn trust and build relationships.”

Imagine highlighting a strength just because it seems people really want it, even though your brand doesn’t have it. That’s a recipe for disappointed customers.

Brand positioning

If competitive analysis is understanding the globe, your brand position is a pinpoint on that globe.

Brand positioning is made up of three key components, Rosenberg said:

• Audience, or who your brand is uniquely speaking to
• Value props, or what you’re uniquely offering to them
• Voice and persona, or how you’re communicating that

Brand strategy

A brand marketer with a strong skillset in brand strategy builds out overarching guidelines that ensure your company’s short, medium and long-term plans support your brand position.

Brand management

Brand strategy takes holistic thinking, but brand marketers are detail-level thinkers, too. They’re skilled at brand management, which involves implementing brand guidelines at a more department-by-department and case-by-case level.

Internal communication

To do their jobs well, brand marketers must be able to sync with key stakeholders and team members across the company on vision, goals, creative hunches, origin stories and individual personalities.

Ideally, when they talk to senior leaders, they “bring them through the brand journey that the customer is going on to help them understand where and why these could be pain points for a customer,” Sullivan said

Marketing skills

Understand their customers

Customers are at the core of marketing. You cannot sell anything to anyone unless they want it. If marketing is about satisfying customer needs, then first you must understand those needs. This means being able to identify customers’ problems, sometimes before they do, and find a way of addressing those needs and problems through the products and services that you provide.

Know their market

Marketers also need to know what is happening in the market. This means knowing what other companies are offering, what suppliers are doing, and what complementary products exist. They must become subject matter experts on their market.

One way to understand the market is to use a strategic analysis technique like Porter’s Five Forces or the 7 Ps of Marketing. This provides a structural way of examining the market, ensuring that you have considered every aspect of the situation.

Think creatively to identify new approaches

Marketing may be increasingly data-driven, but that does not mean that there is no place for creativity. Marketers are good creative thinkers, able to use their skills in generating ideas to find new ways to reach out to customers and create customer experiences that are more memorable (for the right reasons).

Communicate effectively in writing and orally

Good marketers are very effective communicators, in writing, in face-to-face meetings, and in presentations. They are able to get their point across simply and succinctly, often in a new way that will grab their audience’s attention.

Networking skills

Networking skills are competencies that help you in building personal and professional social contacts. It is an essential skill for many industries, including sales, business development, retail, banking and others. Networking allows you to meet new people, exchange ideas and find new job opportunities. You build strong connections with your colleagues, friends, family members, clients, customers, professors or personal acquaintances when your network. Connecting with such people can prove beneficial for your career.

Here are a few reasons why networking is essential:

Opens new job opportunities: Networking is an excellent way to advance your career because you contact a professional who may have information about a job that a recruiter is yet to share on different job boards.

Builds self-confidence: The more you interact with people, the more you can build your self-confidence and social skills.

Enhances communication skills: Networking gives you a chance to communicate your ideas to others and explain your potential to them. This can improve your verbal communication skills.

Helps in finding mentors: Whether you are an entry-level or experienced professional, you may require guidance in your career. Networking facilitates the opportunity to find and connect with people who have vast experience in your field and could become your mentor.

Improves elevator pitch: When you meet new people, you give a brief description of who you are, your strengths and your background. This brief introduction is your elevator’s pitch that can help you form a lasting connection with a professional.

7 Networking Skills

There are different skills required for networking with people. Some of these are:

Communication

Communication is the exchange of ideas from one person to another. It helps you use the right tone so that you receive a response from the other person. When networking with people, this skill helps you effectively communicate and deliver the intended message. You may require written communication skills to build and maintain relationships on social media networks and professional networking websites.

Active listening

Active listening is the ability to focus on what the speaker is saying and responding thoughtfully to their message. It is an important skill to grow your network because you show them respect and understand their message by listening to others. Active listening skills involve smiling, making eye contact and using other non-verbal cues to showcase that you are listening to the speaker.

Public speaking skills

At networking events, you may interact with a large group of people to build connections. This requires excellent public speaking skills. Public speaking skills help improve the way you articulate, helping the other person understand what you are trying to say.

Social skills

Social skills are the skills that require you to interact with others in a personal and professional environment. These include words and gestures, visual cues, body language and appearance. Reaching out to people you are meeting for the first time or meeting with colleagues outside of office hours can help you build and manage long-term relationships.

Empathy

Empathy is the ability to understand another person’s emotions and state of mind. It is an important skill for networking because people prefer sharing their emotions and experience with empathetic people. Asking questions related to the situation and approaching a situation based on the viewpoint of others can help you network better with people.

Positivity

Often, people prefer to interact with individuals who showcase a positive demeanour and are friendly. A positive attitude and perspective toward everything can help you develop a strong rapport and make you likeable and memorable. As people naturally gravitate to positive people, building positive relationships in the workplace and outside becomes easier.

Emailing skills

Even after the advent of social media, email remains a preferred choice for most businesses to exchange professional messages. But certain email rules are essential to ensure recipients read and act upon your email. Keep emails short, precise and succinct to develop a long-lasting business relationship. Also, perform a little research into the recipient and tailor the message based on their interest to make a positive impression.

Organization skills are soft skills that help you manage expectations, stay on top of tasks, and deliver results in a timely fashion.

Communication

Another important organizational skill to consider is communication. Your communication skills are based on how well you share and receive information in the workplace. If you are an organized communicator, you will be able to give other members of your team the information they need in an effective and timely manner. Organized communicators prioritize efficiency in the workplace by responding to requests quickly, giving instructions accurately and relaying information reliably.

Time management

Managing your time well is crucial to being organized. Time management involves allowing yourself enough time to finish tasks, not spending too much time on any one project and balancing the time you spend at home and work. Managing your time is important because it helps you conserve your energy and stay calm in a fast-paced environment. Deciding when and how to use your time is a fundamental element of workplace organization.

Setting goals

Organization in the workplace also involves setting achievable goals. Organized employees can set personal and professional goals that inspire them to work hard and perform well. Being an organized professional should involve setting daily and weekly goals that structure your efforts and keep you focused on your employer’s objectives. Achieving goals regularly is a sign of a well-organized employee who uses their resources well.

Working under pressure

Organization is particularly important in high-pressure situations. In fast-paced environments and workplaces that enforce strict deadlines, being organized is critical to an employee staying calm and focused. If you can effectively schedule your time, manage your energy and use your resources, working well under pressure can make you a valuable asset in your workplace.

Delegation

In many cases, being organized means knowing your limits. If an employee’s responsibilities become more than they can handle, they may need to assign one or more of their tasks to a coworker. An important part of delegation is knowing which team member is the most qualified to finish a particular task or project. If you can list and organize your tasks and decide which to delegate, you may be able to improve the productivity of your entire team.

Self-motivation

An important element of organization is the ability to take initiative. Organized employees are well-aware of the tasks they need to complete and can work on assignments without supervision or assistance. If you can earn a reputation for being organized and self-sufficient in your workplace, you will likely be given even more opportunities to use your skills and develop professionally.

Analytical thinking

Analytical thinking involves the ability to read and interpret information to come to reasonable conclusions. Being organized at work often involves organizing your thought process. Being able to think about a problem logically and determine the source of the issue will help you overcome setbacks quickly and avoid delays.

Decision-making

Organized employees are skilled decision-makers. Making well-thought-out decisions involves collecting all the necessary information, considering the consequences and thinking ahead to predict outcomes. If you are skilled in organization, you will likely have the communication skills, logical mindset and goal-oriented attitude necessary for making effective decisions.

Attention to detail

This organizational skill relates to how mindful and thorough you are in your work. Organized employees recognize that taking the time to do a job well the first time will save them from extra effort later on. Being organized means having the time and energy to make sure every aspect of a task is properly handled and that each step of a project is completed correctly.

Strategic planning

Being organized involves making the most of your time and energy. A crucial part of this is planning out how you plan to use your resources. This often involves keeping a detailed calendar, using a focus timer and scheduling meetings days or weeks in advance. Thinking ahead and planning accordingly can help organized employees to stay on top of their workload and to avoid missing deadlines.

Strategic thinking is a combination of many modes of thinking, including analytical, creative, visionary, contradiction, tactical, gut-feeling (intuitive), chronological, holistic, and critical among others.

Use strategic thinking when you:

• Have a difficult “roadblock” that impedes your ability to meet a goal or a future desired state
• Have a group of experts in the room that need to work together to solve a complex problem
• Want to focus on the long-term versus the short term
• Want to use what you have to maximum advantage [i.e. leverage]
• Want to not “do things the way they have always been done around here”
• Have inaccurate information and/or conclusions, and are able to treat any conclusions as tentative or hypotheses.

Important

The competitive landscape can change quickly for any organization. New trends may emerge quickly and require you to take advantage of them or fall behind. By incorporating everyday strategic thinking into your work and life routines, you will become more skilled at anticipating, forecasting, and capitalizing on opportunities.

On an individual level, thinking strategically allows you to make a greater contribution in your role, become more essential to your organization, and prove that you’re ready to control greater resources.

Strategic Thinking in Business

During an organization’s annual strategic planning process, leaders often compile, analyze, and synthesize external and internal data and ideas to develop its strategic intent and build a strategic narrative. This document will guide the company into the future for a defined period of time. Leaders then choose and plan specific actions that will accomplish these strategic initiatives.

Businesses also need to schedule a time for strategic thinking and reviews throughout the year. Leadership teams should periodically examine their strategic initiatives to ensure execution is taking place, review, and sustain the effort across the organization.

Strategic Thinking in Leadership

Business leaders and stakeholders use strategic thinking and analysis to decide what product mix they’ll offer, what competitive landscape to compete in (or not compete in), and how limited resources will be allocated such as time, employees, and capital. They must decide how to best structure enroll others to achieve important objectives and to avoid putting resources at unnecessary risk of loss.

Strategic Planning

“Strategic planning is an organization’s process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy. It may also extend to control mechanisms for guiding the implementation of the strategy.”

“A systematic process of envisioning a desired future, and translating this vision into broadly defined goals or objectives and a sequence of steps to achieve them. In contrast to tactical planning (which focuses at achieving narrowly defined interim objectives with predetermined means), strategic planning looks at the wider picture and is flexible in choice of its means.”

Based on our thinking on strategic thinking above, we would urge you to also consider that strategic is about ensuring you and the group really dig deeply to look at what gets in the way of implementing your vision. This means looking at root causes or in the Technology of Participation (ToP) model of strategic planning, we call this contradictions to the vision. This is a unique piece in the ToP method that we have found to be extremely valuable to organizations and groups.

Some common scenarios that lead people to the need for strategic planning include:

Structural Changes. Your organization has recently acquired, been acquired or merged with other departments or organizations. When this happens you need to bring together different cultures, address mistrust and often adjust your mission statement. Or, you have had a lot of changes in personnel new leaders, key staff are coming on board.

Economic Changes. Your organization has recently had a significant increase or decrease in funding. You may need to make some hard choices about priorities because you either have fewer resources to do the work of the organization or you seem to have lost your mission focus.

Policy Changes. Your board or senior leadership teams have decided to address a social or health issue you haven’t focused on before. Or, you are focusing on a new target group, product or service. You need to know how these changes affect the overall mission and values of the organization and move carefully to implement them.

Whether you are setting up a new business or are already an entrepreneur, keeping up with the latest technology to suffice market demands is quite challenging. One thing that you should never overlook is your skill set which will definitely help you touch the goals that you have set f or your business.

An entrepreneur refers to someone who builds or operates their own business. By having an equity stake in the firm, the entrepreneur can enjoy a great deal of profit if things go well; but, they also take on a great deal of risk far more than a regular employee of the business. This entrepreneurial risk can take several forms, including financial risk, career risk, emotional risk, or overall business risk.

Since there is so much at stake when it comes to starting and growing a successful business, there are very specific skills that an entrepreneur usually needs to be successful. Below, we highlight five such attributes.

1. Conversion Rate Optimization (CRO)

Conversion rate optimization, or CRO, is the process of turning more website visitors into customers. The goal, basically, is more sales and revenue. The better your website can encourage users to take a specific action, the greater your business will grow.

Since the bulk of modern businesses do marketing online, this skill is one of the highest-ROI tactics in your marketing arsenal.

The full array of CRO tactics is complex, but the principles are easy to grasp. First, you must have a solid understanding of your customer. Second, you should be able to work with your existing data for some actionable tactics. Then, you run split tests to find out which variation converts more visitors.

From that point, you can interpret test results, make changes, and iterate even more tests.

2. Search engine optimization (SEO)

Far from being dead, SEO is alive and well and more important than ever.

It’s important because it’s easy to veer into one of two extremes. Extreme one is neglecting SEO. Some marketers think that ignoring SEO is the best approach because the algorithms are smart enough to figure out what your site is all about and how to get users to find it. This is incorrect, since targeting user intent and optimizing a site’s technical SEO are still crucial to online success.

The second extreme is doing SEO wrong. Old-school SEO tactics will put your website in the penalty box, preventing users from even being able to find your website.

Knowing the essentials of SEO and acting on them is integral to a modern business’s online success.

3. Content Marketing

Content marketing has been around for a long time, but it’s taken off in the last five years in ways that no one anticipated.

Content marketing is a $200+ billion dollar industry, and growing. There are no signs of decline. For modern entrepreneurs to succeed, they must learn to embrace and advance this marketing method.

4. User Experience

Also known as UX or UXD, user experience is “the process of enhancing user satisfaction by improving the usability, accessibility, and pleasure provided in the interaction between the user and the product.”

User experience is at the heart of SEO, CRO, and content marketing. If you can learn the why and how of user experience, you can drive your business to new levels of success.

Facebook, Uber, Slack, and many of the other silicon valley unicorns have achieved their remarkable growth, in part, from a powerful UX strategy. UX is far too important to ignore.

5. Email Marketing

An emphasis on email marketing may sound like a blast from the 2005 past, but here’s the thing: Email marketing remains one of the most effective forms of marketing available.

One of the reasons email marketing is still massively successful is due to the rise of mobile. Take your own experience as an example. How do you interact with many of the messages you receive on a daily basis?

Successful businesses know how to combine content marketing methods with growing an email list, with split testing, and with user experience to engineer powerful marketing methods.

6. Social media

Hopefully, you’re familiar with the basics of Twitter, Facebook, and LinkedIn.

Since most of us are already part of these social networks, we’ve shortened the learning curve. When it comes to monetizing these social networks, however, there’s still some ground to be gained.

Social media isn’t going away, even if its algorithms and methods change on a weekly basis. It behooves entrepreneurs to know its power and potential.

7. Writing

Some of the best entrepreneurs I know are also great writers.

Why do entrepreneurial success and great writing ability go hand in hand? Part of it is the sheer marketing power. Creating great content generates loyal customers. Another benefit of great writing is the ability to think analytically and creatively.

Entrepreneurs will always be writing business plans, emails, proposals, headlines, and guest articles. Improving this skill can benefit you in untold ways.

Not making one

As an entrepreneur, surely, you’re more excited about doing the thing you want to do that writing a plan about it. But recall the wisdom of Yogi Berra: “If you don’t know where you’re going, you’ll end up somewhere else.” Without a plan, you’re likely to spend valuable time and energy pursuing fruitless paths and spreading yourself thin. Make completing your plan a priority to focus your energy, stay on the right path, and improve your chances of landing a small business loan.

Unrealistic Financial Projections

Most Canadians are familiar with the businesses on CBC’s Dragons’ Den who grossly overestimate the value of their company and are chastised and shot down by the dragons. It’s one of the most common business plan mistakes. Lenders and investors expect to be shown a realistic picture of where your business is now and where it hopes to be, therefore if the plan is overly optimistic with no explanation of the projections, it will ring warning bells and cause the plan to be rejected.

Being unrealistic

This can happen on a number of fronts if you’re not willing to ask hard questions, do concrete research, and be honest with yourself. Your business plan can’t represent the best case scenario or the way you hope things go: it has to grapple with the reality of the marketplace, financial truths, and the entrepreneurial landscape. Focus on being realistic in a few key areas:

• Financial projections: Don’t pad or overinflate your future earnings projections. At best, you’ll look like you don’t know what you’re doing and a bank won’t trust you enough to lend you money. At worst, they’ll lend you the money and you’ll go into default or bankruptcy.
• Competition: A big red flag in many business plans is a belief that you have minimal competition or even none. “You’re always competing for dollars,” said RISBDC counselor Manuel Batlle. Even if your product is unique, your target customers still have choices about what to do with their money. You must address how you will persuade your target market to give their dollars to you.
• Market research: It doesn’t matter what you want to build or sell. Someone has to be willing to buy it for a price that makes it worth selling. No business plan is complete without investing time and energy in up-to-date market research to truly understand market trends, customer interest, competitor performance, and other aspects of product or service viability.
• Customer base for brick and mortar businesses: Your mother may be willing to drive across the state to buy a soda from you, but probably no one else will. For many products and services, your customers are going to be local. Particularly in Rhode Island, customers may be searching within walking distance, or a 5-10 minute drive. Dig deep into the census information on demographics in your area and be realistic about how many target customers are within buying distance.

Poor executive summary

A lender will read your business plan’s executive summary and “give it the sniff test, then the gut test,” said RISBDC business counselor Josh Daly. The lender may decide whether or not to continue reading based on what their intuition tells them. So the executive summary is worth focusing on. Someone without a deep business background should be able to understand it, and it should make the case that your business is viable in short, clear points. Daly recommends 1-3 sentences each on your business background, customer base, the market, the competition, your qualifications, and your team. A concise summary should fit into about two pages and convince your audience to keep reading. If your plan is focused on securing financing, prospective lenders should immediately know how much money you are looking to borrow and how the money will be used.

Bad Research

All research must be double checked and substantiated. By using incorrect or out of date information you will discredit your business idea and the remainder of the plan.

Too long

For a majority of small businesses, a succinct and well-organized business plan should be 5-10 pages long. An engaging business plan includes visuals, where appropriate, to avoid wordiness when a graph, chart, or map will tell the story more effectively. Additional supporting financial projections or research data can go in an appendix. Plans that are significantly longer don’t necessarily give more or better information, and they risk losing their audience before they’re actually read.

No Focus on your Competition

Even if you think you have a ‘unique’ business idea and are sure that no other business like yours exists, check and double check. There is no such thing as no competition. Even if your business is one of kind, it comes down to the dollar; if your business didn’t exist, but the customers’ need still existed, where would they spend their money?

Equally if you highlight your competition too much the investor will worry that the business will not survive. Focus on your niche, what differentiates you from the competition, how you plan to compete in the marketplace and paint accurate picture of what the industry is like now and where you see it going in the future.

Not backing up what you say

Along with being realistic in discussing your projections and your market research, you also need to make sure you’re using data and references not just anecdotes to support what you’re claiming.

Not focusing on the team, and your role as the head

No small business owner has every skill and personality trait needed to take a business all the way from the seed of an idea, to the world, all by him or herself. It’s appropriate and important to identify and address gaps in your experience and education, and explain how you’ll overcome them. It’s also crucial to briefly introduce your top team members, sell their contributions to your company, and portray how together, your team is well-rounded and ready to tackle the challenges ahead.

Sloppy mistakes

Typos, grammatical errors, and poor formatting are completely avoidable enemies, taking the shine off your first impression. Your business plan needs to look professional because it’s going to speak for you. Use spell-check. Re-read your plan. Get lots of sleep and re-read it again. Then, even if you’re a great writer and a stickler for detail, have someone else check it over for things you’ve missed. Never underestimate the value of a pair of fresh eyes.

DIC

The District Industry Center (DIC) under the Directorate of Industries and Commerce offers a subsidy loan scheme for young professionals under the guidance of the Ministry of Social Justice and Empowerment. Established in 1978, District Industries Centers’ program was initiated by the Central Government to promote tiny, cottage, village, and Small Scale Industries (SSIs) in smaller towns and their particular areas to make them available with all the basic needs, services, and facilities.

DIC’s primary focus is to generate employment in rural regions of India. District Industries Centers are managed and operated at the district level to provide all the necessary support services to entrepreneurs or first-time business owners to start their own Micro Small and Medium Enterprises (MSMEs). DICs also promote the Registration and Development of Industrial Cooperatives.

Role of District Industries Centres (DICs)

The District Industries Centres (DICs) play a prominent role in developing and promoting industries in the respective states. They are established by the Department of Commerce & Industry of the respective state. In addition to DICs, Sub-District Industries Centres (SDICs) have also been created in various states such as Nagaland. This additional tier has helped industrial development to penetrate deeper into the rural areas of the country.

• Provide assistance for DIC programmes
• Single window clearance system
• Promote industries in rural areas
• Provide employment to people in both rural and urban areas

Schemes under the District Industries Centres (DICs)

A number of schemes have been launched which fall under the ambit of District Industries Centres (DICs). These schemes help in fulfilling the goals of establishing the District Industries Centres (DICs). These schemes are centrally sponsored schemes as well as central sector schemes. The following schemes fall under the DIC:

• Prime Minister’s Employment Guarantee Program (PMEGP): This centrally sponsored scheme under the Ministry of Micro, Small and Medium Enterprises (MSME) was launched in 2008. The PMEGP aims to generate employment opportunities for educated unemployed citizens in rural and urban areas. The nodal agency for the implementation of the scheme is Khadi & Village Industries Commission (KVIC). Under this scheme, 90-95% of the amount will be given by banks as loans with 5-10% of the project cost in the industry, service or business sector being the applicant’s share.
• District Industries Centre (DIC) Loan Scheme: This scheme is for the self-employed as well as the small unit sector in towns and rural areas with population less than 1 lakh and with capital investment being less than Rs. 2 lakhs. These small units are identified by the Small Scale Industries Board and Village industries, handicrafts, handlooms, silk & coir industries.

For entrepreneurs in the general category, 20% of the total investment or Rs. 40,000 shall be the margin money (whichever is lesser). For entrepreneurs in the SC/ST category, 30% of the total investment or Rs. 60,000 shall be the margin money (whichever is lesser).

• Seed Money Scheme: This scheme is targeted towards the self-employed who engage in skilled wage employment or self-employment ventures. Institutional financial assistance in the form of soft loans. Project cost to avail loan facility under the seed money scheme has been increased to Rs. 25 lakhs. For projects up to Rs. 10 lakhs, seed money assistance of up to 15% of the project cost is offered. For SC/ST/OBC, the assistance provided will be 20% of the project cost; the limit of assistance provided is Rs. 3.75 lakhs with 75% of the project cost being in the form of a bank loan.
• District Awards Scheme: To boost entrepreneurs’ spirits and celebrate their achievements and successes, the state governments have started honoring such entrepreneurs with awards at the district level. The District Advisory Committee formed at the district level shall select the entrepreneurs to be awarded. The District Awards Function is held on Vishwakarma Jayanti Day which falls on varying dates every year. The award function includes the display of the products by the entrepreneur for sale and exhibition along with workshops and discussion about the same.
• Entrepreneurship Development Training Programme: This scheme was launched to impart training to the educated unemployed people and encourage them to encourage self-employment ventures or engage in skilled wage employment. Training programmes under the Entrepreneurship Development Training Programme are:

• Entrepreneurship Introductory Programme (Udyojakata Parichay Karyakram)
• Entrepreneurship Development Training Programme (12 Day residential)
• Technical Training Programme (12 Days to 2 Months non-residential)

SIDA

Sida uses Challenge Funds to finance entrepreneurs and innovators that want to contribute to economic, environmental and social sustainability in the developing world.

Sida finances various Challenge Funds with different regional and thematic priorities so that development can reach as many people as possible. The funds should always address a key development issue which otherwise is not addressed by market forces. Challenge Funds can also be used to stimulate and support innovations in research and the civil society, for example by investing in local knowledge to improve governance, transparency, rights and access to services or to strengthen peoples’ voice and influence.

Because of low investment, many people living in poverty suffer a lack of productive work and goods that would help them improve their livelihoods. The private sector is a large source of innovation, employment and growth that has the potential to positively affect the situation for people in low- and middle-income countries. Due to the high level of uncertainty and risk associated with developing markets it is often hard for entrepreneurs to access credit or investments.

Challenge Funds are mostly aimed at entrepreneurs that lack the capital to start up their business or to scale a small project or business venture into a larger one. Sida wants to give social/sustainable businesses a chance to try their ideas and innovations. By taking some of the initial risk via investments through a Challenge Fund, Sida can enable social/sustainable businesses to become self-sustaining.

SISI

The small industries service institutes (SISI’s) are set-up one in each state to provide consultancy and training to small and prospective entrepreneurs. The activities of SISs are co-ordinate by the industrial management training division of the DC, SSI office (New Delhi). In all there are 28 SISI’s and 30 Branch SISI’s set up in state capitals and other places all over the country.

Functions of SISI

1. To assist existing and prospective entrepreneurs through technical and managerial counseling such as help in selecting the appropriate machinery and equipment, adoption of recognized standards of testing, quality performance etc;
2. Conducting EDPs all over the country;
3. To advise the Central and State governments on policy matters relating to small industry development;
4. To assist in testing of raw materials and products of SSIs, their inspection and quality control;
5. To provide market information to the SISI’s;
6. To recommend SSI’s for financial assistance from financial institutions;
7. To enlist entrepreneurs for partition in Government stores purchase programme;
8. Conduct economic and technical surveys and prepare techno-economic feasible reports for selected areas and industries.

NSIC

The National Small Industries Corporation Ltd. (NSIC), an ISO 9000 certified company, since its establishment in 1955, has been working to fulfill its mission of promoting, aiding and fostering the growth of small-scale industries and industry related small-scale services/businesses in the country.

At present, the NSIC operates through 6 Zonal Offices, 26 Branch Offices, 15 Sub-offices, 5 Technical Services Centres, 3 Extension Centres and 2 Software Technology Parks supported by a team of over 5000 professionals spread across the country. To mange operations in Gulf and African countries, the NSIC operates from its offices in Dubai and Johannesburg.

Functions of NSIC:

NSIC provides a wide range of services, predominantly promotional in character, to small-scale industries.

1. Provide machinery on hire-purchase scheme to small-scale industries.
2. Provide equipment leasing facility.
3. Help in export marketing of the products of small-scale industries.
4. Participate in bulk purchase programme of the Government.
5. Develop prototype of machines and equipments to pass on to small-scale industries for commercial production.
6. Distribute basic raw material among small-scale industries through raw material depots.
7. Help in development and up-gradation of technology and implementation of modernization programmes of small-scale industries.
8. Impart training in various industrial trades.
9. Set up small-scale industries in other developing countries on turn-key basis.
10. Undertake the construction of industrial estates.

SIDO

Small Industries Development Organization (SIDO) is a subordinate office of the Department of SSI & Auxiliary and Rural Industry (ARI). It is an apex body and nodal agency for formulating, coordinating and monitoring the policies and programmes for promotion and development of small-scale industries.

Development Commissioner is the head of the SIDO. He is assisted by various directors and advisers in evolving and implementing various programmes of training and management, consultancy, industrial investigation, possibilities for development of different types of small-scale industries, industrial estates, etc.

The main functions of the SIDO are classified into:

(i) Co-ordination,

(ii) Industrial development, and

(iii) Extension.

These functions are performed through a national network of institutions and associated agencies created for specific functions. At present, the SIDO functions through 27 offices, 31 Small Industries Service Institutes (SISI), 37 Extension Centres, 3 Product-cum -Process Development Centres, and 4 Production Centres.

All small-scale industries except those falling within the specialized boards and agencies like Khadi and Village Industries (KVI), Coir Boards, Central Silk Board, etc., fall under the purview of the SIDO.

The main functions performed by the SIDO in each of its three categories of functions are:

Functions Relating to Co-ordination:

1. To evolve a national policy for the development of small-scale industries,
2. To co-ordinate the policies and programmes of various State Governments,
3. To maintain a proper liaison with the related Central Ministries, Planning Commission, State Governments, Financial Institutions etc., and
4. To co-ordinate the programmes for the development of industrial estates.

Functions Relating to Industrial Development:

1. To reserve items for production by small-scale industries,
2. To collect data on consumer items imported and then, encourage the setting of industrial units to produce these items by giving coordinated assistance,
3. To render required support for the development of ancillary units, and
4. To encourage small-scale industries to actively participate in Government Stores Purchase Program by giving them necessary guidance, market advice, and assistance.

Function Relating to Extension:

1. To make provision to technical services for improving technical process, production planning, selecting appropriate machinery, and preparing factory lay-out and design,
2. To provide consultancy and training services to strengthen the competitive ability of small-scale industries.
3. To render marketing assistance to small-scale industries to effectively sell their products, and
4. To provide assistance in economic investigation and information to small- scale industries.

India’s population is among the youngest in the world. And, many of these young people are in search of jobs, despite being educated. The government has been working to create employment opportunities for youth, while focusing on economic growth.

Entrepreneurship is one of the mechanisms adopted by the Government of India towards the creation of job opportunities.

Before 1991, Indian business success was a function of ambition, licenses, government contacts, and an understanding of the bureaucratic system. Decisions were based on connections, rather than the market or competition. Business goals reflected a continuation of the ‘Swadeshi’ movement, which promoted import substitution to attain economic freedom from the West. Pre-1991 policies were inward looking and geared towards the attainment of self-reliance. During this era, entrepreneurship was subdued, capital was limited and India had very few success stories. As well, society was risk averse and the individual looked primarily for employment stability.

In 1991, the Indian government liberalized the economy, thus changing the competitive landscape. Family businesses, which dominated Indian markets, now faced competition from multinationals that had superior technology, financial strength and deeper managerial resources. Thus, Indian businesses had to change their focus and re-orient their outlook outward. A few existing Indian business families adapted to the new economic policy while others struggled. Importantly, a new breed of business was born, one that focused on ICT (Information and Communication Technology) and created wealth for owners and employees.

For the old business houses, success had come from the close-knit joint family structure that fosters family values, teamwork, tenacity and continuity. Under this structure, generations lived and worked together under one roof, reaffirming the Weberian values and trust that have built successful businesses. Wealth from the businesses supported the joint family by providing a social safety net for members. In the structure, businesses and families were intertwined though they were also distinct entities with separate rules. Hence, survival of the family became synonymous with the survival of the business.

Liberalization, however, changed the very nature of the joint family. If large Indian businesses were to succeed, the family would have to re-orient itself to compete in a global, competitive environment.

Post liberalization, IT businesses succeeded because they were customer focused and professionally managed. The old, family-managed businesses, which formed the backbone of the economy, needed to evolve and become more institutional, if they were to extend their life cycle. Below, using the Indian mythology trinity of creation, preservation and destruction, I explain the changes that family businesses would have to make below.

Brahma: Creation Cycle

After liberalization, business opportunities in India were manifold. A good number of entrepreneurs seized them and grew from small-scale contractors to large real estate developers, and from distributors to manufacturers. Success became the result of efficient capital allocation, strong execution and a customer orientation.

Today, businesses have access to venture and growth capital, provided that their stories and business models are reasonable. In the pre-1991 License Raj era, abilities such as manufacture and deliver products to the market were the Key Success Factors, without regard for the customer and other efficiencies. Liberalization also brought in the age of Saraswati; businesses would now grow because they had knowledge, , not because of whom they knew.

One example is N.R. Narayana Murthy, who co-founded Infosys Ltd. in 1981, with an initial capital of INR 10,000 (CDN$ 250.00). At Infosys, he and his team designed the Global Delivery Model, which also laid the foundation for the knowledge industry. Narayan Murthy’s vision gave a fillip to the IT services industry, creating and encouraging the entry of several new IT businesses.

Vishnu: Preservation Cycle

To maintain business growth, Indian entrepreneurs need to segregate operating control of the business from beneficial ownership, mitigating business and family succession risks. But, in a male-centric culture, people are reluctant to relinquish operating control and institutionalize processes. Consequently, there are few large, structured and professionally managed institutions in India.

Indian businesses need to move from an entrepreneurial-driven, unstructured culture to one dominated by professional managers. Management control should rest with professionals, as they are able to perform more efficiently; beneficial ownership can continue to rest with the owners, who can still provide the vision and connections, and enjoy the fruits [increase in firm valuation] of efficient management.

If a younger generation wishes to take over the business, then clear criteria can be defined to determine their eligibility to succeed their elders. These criteria could include requirements to work in middle management, work across divisions, work in audit, and have a first-class education. Succession must also take into account the changing role of women and their desire to be involved in the business. If a proper succession plan is not developed and implemented, nepotism and stagnation will result.

Essentially, corporate governance with a lucid ownership structure that blends effectively with the professional decision makers [e.g. CEO] can reap benefits for all stakeholders. This will allow entrepreneurs to build larger institutions.

Sunil Mittal, a first generation entrepreneur, indentified an opportunity in mobile telecom. In 1994, Mr. Mittal successfully bid for a telecom license , and services were launched under the brand name AirTel. The business model was innovative –IT management services and hardware (telecom towers) were outsourced to vendors. Fixed costs were converted to variable costs. Mr. Mittal was able to professionalize the organization early, something that helped him build a larger institution. As a result, India now has one of the lowest-priced telecom services in the world.

The Burman Family, which owns Dabur Ltd. (consumer goods company), has is a good example of a family company that segregated management from ownership. It has a separate Family Committee that provides the vision and direction, but the day-to-day management rests with the professionals. The family has a formal structure for communicating with management.

As Indian businesses became professional, opportunities to acquire global businesses increased. In 2006, Corus, an Anglo-Dutch steelmaker accepted an US$7.6B bid by Tata Steel, the Indian steel company. This allowed Tata Steel to become a global leader in the steel business instead of continuing to remain a large domestic steel manufacturer. Once an acquisition target, Tata Steel has itself grown into an acquirer. .

Shiva: Destruction (Exit) Cycle

Owners should exit their business if it is not efficiently managed or if it receives exceptional valuations. A control-and-hold behavior will simply not enable success. We have seen that a few owners, Malvinder & Shivinder Singh, and Ajay Piramal, for example, both in the pharmaceutical industry, have successfully sold their businesses.

As businesses grow, entropy will only increase. The discontinuity will be difficult to manage if a formal family structure is not in place to meet the needs of the next generation. However, if roles and responsibilities of the next generation are defined, and professional management (wherever necessary) takes over, closure of the business can be avoided. As it is said, a lack of liquidity can bankrupt a firm; similarly, the lack of an appropriate family structure can force a business to close after the first generation exits. Thus, Indian owners have to make the transition from being owners to shareholders.

As shareholder value increases, the free cash flow can be invested in new initiatives that enable the new generations to apply their skills. We need not throw away the characteristics of the joint-family business – work ethic, ability to deal with diversity, customer focus — but to blend what has been learned about customer focus and diversity, for example, into a performance-driven structure. Only then can the investment cycle of creation, preservation and destruction continue.

Risks to India’s growth: Real but overstated

The Indian entrepreneurial spirit can only develop and grow if the Indian economy continues to grow on a sustainable basis. The risks to India’s continued growth are terrorism, political corruption/stalemate, non-inclusive growth that focuses only on the urban rich, and stalled reforms. What then is India’s risk premium?

As the investment cycle strengthens, foreign businesses can invest in India independently or through partnerships. The businesses factor the political, economic and family risks in their analysis. From an academic’s perspective, the businesses can either decrease the expected cash flows or increase the discount rate to reflect risk premium, though the adjustments are complex.

Terrorism: India is a stronger state because of its culture

As per Wikipedia, “Terrorism in India is primarily attributable to religious communities and Naxalite [militant Communist Group] radical movements.” I am not going to elaborate on the causes of terrorism but I do want to ask if India as a country will survive and remain united despite the nefarious activities of the insurgents. It can be stated unequivocally that terrorism creates uncertainty and delays investments in any country. However, we need to comprehend a country’s culture, constitution and its past response to terrorism to consider and assess its fate.

Culture is a broad-based word but a powerful concept. Culture is rooted in myths, institutions, television, globalization, upbringing, religion and history. Foreigners have invaded India, but we have learnt to absorb and assimilate them into our society. India has the second-largest Muslim population in the world. Buddhism and Jainism had their roots in India but only traces exist today, as Hinduism absorbed their teachings. The Indian culture is tolerant and can deal with differences. The difference between Europe and India is that Europe is a continent with independent countries while India is one country that has united many divergent countries.

The government plays an important role in the development of entrepreneurship. The central and state governments have set up a number of institutions to promote entrepreneurship. They are:

• Small Industries Development Organization:

SIDO formulates policies for the development of small scale industries in the country. It provides support for promotion of rural entrepreneurship.

• Management Development Institute:

MDI conducts management development programs to improve managerial effectiveness in the industry.

• Entrepreneurship Development Institute of India:

EDI has helped to set up twelve state‐level exclusive entrepreneurship development institutes and centres.

All India Small Scale Industries Board:

AISSIB advises the Government on all issues related to the small scale sector. It determines the programmes and policies for the development of small scale industries.

National Institution of Entrepreneurship and Small Business Development:

NIESBUD supervises the activities of the different agencies involved in the entrepreneurial development programmes.

National Institute of Small Industries Extension Training:

The objective of the institute is to direct and coordinate the syllabi for training of small entrepreneurs. It organizes seminars for small entrepreneurs and managers.

National Small Industries Corporation Ltd.

NSIC provides a vast‐market for the products of the small industries through its marketing network. It also helps the small units in exporting their products to foreign countries.

MSME Policy:

The primary goal of Industrial and MSME Policy Resolutions was to advance industrial development and furthermore decide the example of state help to small industrial units for satisfying financial targets. The advancement of businesses has been viewed as an essential component of the development system hidden Five Year plans.

The appearance of a planned economy from 1951 and the consequent industrial policy pursued by the Government of India, both government and organizers reserved a specific position of Micro, Small and Medium Enterprises in the Indian economy. Government’s targets and goals towards industry, including small scale industry were declared through Industrial Policy Resolutions (IPRs).

Repayment for Iso‐9000 Certification Scheme

The scheme was begun in March 1994, and it gives up to Rs. 75,000 for every small industrial unit which procured ISO‐9000 Certification. Since the beginning of the scheme of ISO‐9000 repayment, 4101 small industrial units to the tune of Rs. 1944 crore have been profited up to Nov – 2006.

Laghu Udyami Credit Card Scheme

Laghu Udyami Credit Card Scheme, presented in November 2001, has been executed by the banks for giving borrower‐friendly credit facilities to small venture.

Credit Guarantee Fund Trust Scheme for Micro and Small Industries

The plan covers guarantee free credit facility reached out by qualified loaning establishments to new and existing Micro and Small Enterprises up to Rs. 50 lakh per borrowing unit.

National Equity Fund Scheme (NEF)

The target of NEF Scheme is to provide equity type finance to business visionaries for setting up new tasks in the tiny or small industrial sector for undertaking extension, modernization, technology upgradation and enhancement of existing modest, Small Industries and Service Enterprises and for reinstallation of practical wiped out units. In this scheme, the expense ought not to surpass Rs. 50 Lakhs.

Integrated Infrastructure Development Scheme (IIDS)

IIDS was launched in 1994 with the target of giving essential infrastructural facilities like Power Distribution network, Telecommunication, Water, Roads, Drainage and Pollution control facility, Storage, Banks, and Marketing outlets, Common administration facilities and Technological backup administrations, and so on

In India, women dominate the micro enterprise sector both in rural and urban areas. According to the central statistical authority women account for close to 70 per cent of the micro enterprises in India are run by women. However, their participation in small, medium and large enterprises diminishes.

Beyond the participating in productive activities such as agriculture, trade and industry, women have multiple roles in society. They participate in productive activities such as agriculture; they are responsible for caring for the family including the preparation of food, health care and education. Women need to balance this different role and therefore they are multitasked, managing their businesses alongside all other roles they are expected to perform. Women account for a larger share of the informal economy operators, as well as those running micro and small enterprises in India .MSME‘s make a significant contribution to the socio-economic development of the country by way of supporting the people to earn money and make a contribution to family income, and by supplying basic goods and services for local consumption.

However this contribution is not fully recognise or understand, and there is little in the way research or statistics to provide a broader understanding of women’s experience as business owners, their contribution to economic development or the challenges they face in setting up, managing and growing their enterprise.

Promote empathy-led structures:

Another prominent factor that female entrepreneurs leverage in catalysing business and economic growth is promoting empathy-led structures. When you understand the workflow and build required or essential structures for the team or employees, it facilitates work, productivity, and business growth.

Strong financial performance:

Women-led businesses and enterprises have shown strong financial performance across industries over the past couple of years. More than money management, it is about the utilisation and investment of capital earned. Such crucial decisions make huge impacts on businesses in the longer run. Budgeting offers a better hold of the cash flow. Even at the time of unprecedented events, the financial performance can be sustained while managing the capital at hand in accordance with essential or needed growth.

Empowering female professionals:

The potential female professionals have is remarkable! Their ability, consistency, dedication, mindfulness, and accountability towards their work are beyond appreciation. While we empower female professionals with gender-balanced opportunities, we praise their abilities and innovation they lay on the table and their vision to grow, personally as well as professionally, while contributing to the collective growth of the organisation.

People development for business development:

Women have contributed to catalysing economic growth with a better understanding of what factors demand focus. People-led processes are the areas to look upon, and when we ease their difficulties, we overcome the hurdles. People ≥ Business, this in itself clarifies more on the co-dependency of people and business.

Women are no longer viewed as traditional resources confined to the household, however, despite being educated, knowledgeable and capable of contributing towards transforming economies, women face fundamental challenges trying to enter the entrepreneurial sector. They are constrained by gender values, norms and stereotypes in the environment in which they operate. Some of the fundamental challenges faced by women are:

Overcoming Financial Bias

Kauffmann research indicates that women on average start companies with half as much capital as men. Five years ago, even federal programs designed to give entrepreneurs a leg up were skewed by gender; women only received 15 percent of the U.S. Small Business Administration’s Small Business Innovation Research awards.

Finding Work-Life Balance

In addition to the challenges faced by many women in the working world, they still usually bear the larger share of the household management functions. Providing true work-life balance is a challenge, particularly for women who feel they need to be perfect both at work and at home.

Overcoming Entrepreneurial Obstacles

Share the stories. Provide more exposure for successful women entrepreneurs to shine. This storytelling also serves as inspiration and opens up networks for women to connect and mentor.

Create support networks. Leverage personal and professional networks to find support, both in terms of sound advisors and for other women leaders, whether those women have started their own companies or are leaders in other organizations.

Forgive yourself. When it comes to work-life balance, no leader should feel obligated to be Wonder Woman. Create realistic expectations and make peace with the fact that no one has to “do it all.”

Address failure. Everyone, male or female, experiences failure in business. Sharpen the coping strategies to react well to missteps and missed opportunities and move forward.

Ask for help. Find the courage to ask for help, whether it is with a particular business issue, specific expertise, or securing funding.

Find the right funding. With challenges abundant in seeking small business loans for women, creative financing options are needed. 

Gender Disparity- Lack of Access to Education and Training:

Due to the inherent gender bias in the society, women lack access to knowledge about business development, maintaining accounts, understanding money matters and even day to day activities of the company. Lack of such skills and the difficulty in access to such information and necessary resources can make running a business very difficult and the chances of turning a business into a success even more minimal.

Lack of Access to Markets and Networking:

Four things primarily required to be a successful entrepreneur are knowledge, expertise, practice and contacts. A lot of women entrepreneurs are forced to operate on a small scale due to mobility restrictions and find it harder to be a member of professional organisations and other networks.

Furthermore, such places are inundated with male colleagues who are sometimes unwelcoming to women and not inclusive, therefore, it makes it harder for women to have access to markets. A lot of these networking activities also take place after working hours and it makes it harder for women to attend them due to familial constraints. Women also have a high fear of sexual harassment and may find themselves restricted in their ability to travel.

A constructive solution to this could be establishing more women only or women majority networks, a safe space, where a woman could enter, gain confidence and move further. Support networks should be created where they can leverage both their professional and personal lives. A good network could provide women with more access to role models to look up to. Women entrepreneurs around the world should be encouraged to share their stories, to inspire women who aspire to start up their own business.

Lack of Mobility

Women are looked down upon in society when they try to run a business. As such, renting a room or property or buying land gets looked at as suspicious. It’s even more challenging for single women who have their own businesses. Limited mobility also refers to the act of owning motorized vehicles and many financially independent women cannot travel alone as there are issues with safely traveling solo. This is one of the many problems faced by women entrepreneurs in the country who try to meet up with prospective clients.

High Competition

The modern economy has made it difficult to start new ideas from scratch and scale up. There is always someone with the latest innovations out there and women entrepreneurs have to prove themselves in order to stand out. Colleagues and investors aren’t willing to commit either due to the hardships and long roads that await them. Women have to use limited resources to operate their business and grow it. Until they build a solid reputation in the industry and generate enough profits, there is no credibility in their words.

No backup plans

Some women entrepreneurs who invest everything into their business can lose big time. Due to the lack of education, social status, work experience, and male support, women entrepreneurs are seen as having no exposure or industry support. They are not taken by peers seriously, and those who invest their all into the business, they cannot afford to fail or have a backup plan.

Digital literacy is important in this era, and women entrepreneurs who do not develop an online presence cannot gain new clients. Most women entrepreneurs lack education in STEM disciplines such as Science, Technology, Engineering, and Math. They don’t have access to the tools and techniques needed to empower them and run a good business.

Low-Risk Appetite

Women business owners are not as financially independent as male businessmen and are prone to many risks when running an enterprise. As such, they cannot take a high degree of risk when running their business. Socioeconomic constants force them to hold back from executing various ideas and making them a reality. The low-risk appetite is due to the rising costs of product development and production, marketing, lack of credibility and strong backing in the business, etc.