Empowering India's MSMEs - Vendor Development Program

Business MInutes

An Overview of Opportunities and Support Systems

"The only caste that strives for the development & welfare of others is Entrepreneur Caste"

On behalf of the Federation of Association of Small Industries of India, it is my pleasure to
welcome you all to the Vendor Development Program. The Ministry of MSME, Govt of India has developed (Zero Defect Zero Effect) ZED Certification. ZED Bronze is free of cost for
manufacturing industries. Please visit https://zed.msme.gov.in

The Federation of Associations of Small Industries of India (FASII) is offering free fire
extinguishers to those who are obtaining ZED Certification through Mr.B.Karthikeyan.

Micro, Small, and Medium Enterprises (MSMEs) play a critical role in India's economic
landscape, contributing significantly to employment, innovation, and industrial output. As per the latest classification under the MSME Act, India boasts around 2.7 crore registered MSMEs. In Tamil Nadu alone, there are over 27 lakh registered MSMEs, with a staggering 98% classified as micro and small enterprises. We are going to explore various support schemes and opportunities available for MSMEs in India, focusing on procurement, innovation, and competitive advantage.

Procurement and Marketing Support Scheme - The Government e-Marketplace (GEM) is a pivotal platform for MSMEs, enabling them to register as sellers and market their products
similar to e-commerce giants like Amazon and Flipkart.

The procurement process on GEM is streamlined based on the value of the transaction:

Less than ₹25,000: Direct purchase.
₹25,000 to ₹5,00,000: L1 category, involving minimal bidding.
Above ₹5,00,000: Traditional tender or bidding process.

This platform not only broadens the market reach for MSMEs but also ensures transparency
and efficiency in government procurement processes.


MSME Innovation Scheme - Innovation is the cornerstone of progress, and the MSME
Innovation Scheme supports enterprises in three critical areas: incubation, design, and
Intellectual Property Rights (IPR).

Incubation: Tamil Nadu allocates one-third of its budget to this initiative, facilitating incubation cells that conduct idea hackathons across more than 300 colleges. The scheme funds 15% of the cost to develop a prototype by the ideate, with the government granting up to ₹15 lakhs covering the remaining 85%.

Design: To promote innovative product designs, the government covers 75% of the costs,
while the ideate contributes 25%.

IPR: The scheme assists MSMEs in registering their designs, safeguarding intellectual
property, and fostering a culture of innovation.

Competitive Lean Scheme - The MSME Competitive Lean Scheme equips enterprises with
lean techniques to minimize waste and enhance productivity. This initiative aims to create a
more efficient manufacturing environment, enabling MSMEs to compete globally.

Zero Defect Zero Effect (ZED) Certification - The ZED certification underscores a commitment to quality and environmental sustainability. MSMEs with ZED certification benefit from reduced interest rates on business and machinery loans, promoting investment in high-quality and environmentally friendly production processes.

Financial and Grievance Support - Selling products at a 30% profit margin is recommended to ensure business sustainability. In competitive scenarios, reducing profit margins is acceptable, but selling at a loss is discouraged. If payment delays occur, MSMEs should factor in interest along with the product's cost price to mitigate financial risks.


The MSME portal also provides access to trained manpower and a platform to address
grievances. Registering on this website enables enterprises to connect with skilled workers and seek support in resolving any operational issues. The comprehensive support schemes for MSMEs in India, particularly in Tamil Nadu, foster a conducive environment for growth, innovation, and sustainability. By leveraging platforms like GEM, participating in the MSME Innovation Scheme, adopting lean techniques, and obtaining ZED certification, MSMEs can enhance their competitiveness and contribute significantly to the nation's economy. Effective branding and strategic financial management are essential for MSMEs to thrive in an increasingly competitive market.


The event was a great success as more than 250+ start-ups participated in this event and the ZED training comes in three levels - Bronze, Silver and Gold. Be it a male entrepreneur based MSME or a Women entrepreneur based MSME, the Bronze level training is taken in person at free of cost. Whereas the Silver and Gold levels are chargeable for Men and again it's free for Women Entrepreneurs.


For more details, contact the MSME through their official websites - www.dcmsme.gov.in and www.msmedi-chennai.gov.in or visit MSME Development Institute - SIDCO Industrial Estate, Guindy, Chennai, Tamil Nadu 600032.



BalaSarvesh

BM Correspondent Chennai


 

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