The Procedeeings of the Webinar on 26th Jan’2025….THE TOPIC - MSME IT’S IMPORTANCE AND BENEFITS
We at Ummat Business Hive are committed towards helping MSMEs grow and thrive in an ever-changing business environment. In India, more than 99% of businesses belong to Micro, Small and Medium category and 94% of them are in unorganized sector, Micro, Small, and Medium enterprises, are vital for the economic growth and development of India. They provide employment opportunities, contribute to manufacturing and exports, and support innovation and entrepreneurship. Do read this article and share your views
The three topmost challenges that act as a barrier towards MSMEs scaling up their businesses are market access, improving overall productivity and access to finance.
Ummat Business Hive through this webinar will try to provide solutions and Mentoring designed to empower your MSMEs and help them scale and improve their efficiencies in order to achieve the government’s vision of an AatmaNirbhar Bharat
Recognizing the growing demand for basic business strategy, financial management, and idea implementation among our SMEs and entrepreneurs, Ummat business Hive intend to provide a unique opportunity for entrepreneurs to connect with potential mentors, professionals, and business experts. This will be achieved through a networking and interactive event where founders, entrepreneurs, mentors, and professional experts can engage and collaborate.
This initiative of creating a community on Ummat Business Portal promises to be immensely beneficial for all participants, facilitating growth and collaboration in the business community.
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Summary: Proceeding of the Weinar
The Host of the Webinar Mr Bilal Zaidi, Director and Co- Founder, Khalid Ansari Director & Co-Founder opened the meeting by acknowledging Republic Day and setting a positive tone for discussions centred on Micro, Small, and Medium Enterprises (MSMEs).
Mr Talha Sareshwala COO & Co-Founder conducted the Webinar, he emphasized the group's commitment to MSMEs, highlighting the new classifications established by the Indian government and the benefits of registration, such as subsidies and tax holidays. He noted the significant economic contributions of MSMEs in India and urged the Muslim community to improve registration rates to access these advantages. Sareshwala also introduced Ummat Business Hive as a platform for knowledge sharing and support for micro and small industries.
Mr Sareshwala identified liquidity as the primary challenge facing MSMEs, advocating for effective cash management strategies, including negotiating with creditors and improving collections. He discussed the importance of distinguishing between marketing and sales, encouraging businesses to focus on existing customers while exploring new communication methods. Additionally, he addressed labor and manpower management, stressing the need for alignment with organizational goals, regular employee feedback, and recognition of performance to reduce attrition rates and enhance productivity. He urged MSMEs to adapt to modern trends and incorporate the perspectives of the new generation to remain competitive.
The meeting also covered ethical business practices, with Sareshwala outlining key principles such as trustworthiness and adaptability. He provided insights into the importance of a detailed business plan for exploring Sharia-compliant financing options, responding to inquiries from attendees like Ms Gul Ikram about interest-free financing and GST registration. Khalid Ansari introduced a new interest-free loan scheme in Uttar Pradesh as a potential resource for expansion. Sareshwala concluded by discussing the Champions Portal, a government initiative aimed at supporting registered MSMEs, and emphasized the need for self-reliance in line with the AtmanNirbhar Bharat initiative, urging businesses to enhance their global competitiveness and ensure compliance with legal standards.
MSME Discussion and Overview
Talha Sareshwala noted the group's preference for MSME over financial literacy, explaining the significance of understanding MSME classifications and the advantages available to registered businesses. He stressed the need for the Muslim community to improve their registration rates to access government benefits.
* Importance of ethical business practices in MSME operations.
* Overview of MSME and its importance in the economy.
* The role of Ummat Business Hive in supporting MSMEs
Challenges Faced by MSMEs
Talha Sareshwala discussed the significant challenges MSMEs encounter, with liquidity being the most critical. He highlighted strategies for cash conservation, such as negotiating extended credit periods and enhancing receivables management. Additionally, he mentioned the importance of marketing and sales, urging businesses to support existing customers and adapt their communication strategies.
* Challenges faced by MSMEs, including liquidity and labor management.
Labor and Manpower Management Challenges
Talha Sareshwala discussed the critical issues surrounding labor and manpower management within the organization. He pointed out the necessity of regular training, sharing business updates, and maintaining open communication with employees to foster engagement and motivation. Additionally, he noted the importance of recognizing employee achievements and addressing wage discrepancies to reduce high attrition rates.
Delegation and Growth Strategies for MSMEs
Talha Sareshwala discussed the necessity for MSME owners to delegate administrative tasks to enhance their focus on business growth. He pointed out that many traditional business setups lack professionalism and management skills, which hinders their success. Sareshwala also introduced Ummat Business Hive's role as a mentor and intermediary for investors and entrepreneurs, emphasizing the importance of utilizing mobilized funds effectively.
Discussion on Business Expansion and Sharia-Compliant Financing
Ms Gul Ikram discussed her small home-based business in natural hair, skin, and health care products, seeking advice on expanding without resorting to interest-based loans. Talha Sareshwala suggested that detailed counseling and a business plan would be necessary to explore Sharia-compliant financing options. Khalid Ansari highlighted a new interest-free loan scheme in Uttar Pradesh that could benefit her.
Keys to Ethical Business Practices and Entrepreneurial Success
Talha Sareshwala discussed essential lessons for young entrepreneurs, focusing on courage, empathy, faith in technology, and adaptability to change. He stressed that courage allows entrepreneurs to act despite fear, while empathy fosters a caring relationship with employees. Sareshwala also noted the necessity of embracing technological advancements and adapting to market changes to ensure business success.
Overview of MSME and Champions Portal
Talha Sareshwala emphasized the critical role of MSMEs in the Indian economy, noting that they employ 40% of the workforce and contribute significantly to GDP. He explained the Champions Portal, which offers real-time grievance resolution and support for MSMEs, showcasing its effectiveness through his personal experience. The portal aims to encourage and assist micro enterprises, facilitating their growth into small and medium enterprises.
Government schemes and support available for MSMEs.
Self-Reliant India: Objectives and Strategies
Talha Sareshwala outlined the five strengths necessary for achieving a self-reliant India, focusing on liquidity as a key factor for organizational success. He stressed that businesses must not only infuse liquidity but also grow in critical sectors to remain competitive both locally and globally. Sareshwala noted that establishing a legal business entity is essential for any organization aiming for self-reliance.
ACTION ITEMS:
Talha Sareshwala will create a government window for knowledge and information sharing for MSMEs.
Talha Sareshwala will provide detailed counseling and consulting to Ms Gul Ikram regarding Sharia compliant instruments and business plans.
Khalid Ansari will discuss the Chief Minister Financial Support Scheme with Ms Gul Ikram personally.