Ease of doing business ?

Ease of doing business is not seen on the ground with so many hurdles one SME has to jump;like approvals from local authourity, bank finance and getting orders from large public sector or corporates.If at all SME manages to get orders the payment days is more than 180 days.So how can SME grow from its own money, with bank not financing without collaterals and guarantee ? more  

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I am arvind patidar .and am a student .i want work on my idea . and also i have a idea . but i am not work properly on it . so give direction . my idea related to e comers web . thanks  On Monday, 24 April 2017 8:43 PM, Urgita Lolla wrote: more  
True Urgita, Doing business as SME on your own is getting difficult. Money is either available through agents, at extra costs or is not available. The demand for securities is very high. The system is sluggish and has its own inertia, but the banks and the government expects you to perform as per clock. Possibly they have seen too many failures as per international standards. Where are the international standards applicable in our society? We take long time decide an order. Our commercial conditions are dictations from customers, seldom respected. Our deliveries are late for some valid reason or the other and majority of jobs are delayed. In public sectors, LSTK contracts are delayed by three to ten tears, against a delivery of one / two years. In our business costs are build up. The international business is at very competitive prices. Since the margins are low, the companies/ institutions die fast. This is not true in our country. NPA is not real, it is only qualified; but the financial institution's actions make the situation worse. They kill a running company, simply buy applying International Standards, in terms of expectations, where as ground realities are different. The Bureaucracy does not want to understand the business man's problems. The corruption further kills it. The taxes are very high. The documentation is not only tough, it often needs duplication. The business men's 80% time goes into Managing other things than businesses. Not only this, there is indiscipline in man power, staff, holidays are too many. The intention's are not spelled out by the staff and the labor. Therefore, the business man is expected to do wonders. God bless him. On Mon, Apr 24, 2017 at 8:43 PM, Urgita Lolla wrote: > more  
Madam Kalavathi, Thank you, for your kind response. The point mention by you that there is special scheme Credit Guarantee Scheme for Micro, Small and Medium Enterprises availabe to credit applicants in Banks.If you qualify to apply under the scheme you can avail finance without any guarantor or collateral. However, who decides that one qualifies to get the loan. Do You have any statistics how many have applied and got the loan? There are many schemes for MSME but its implementation on the ground is not seen. Also there is something called credit ratings which banks have started asking SMEs and in view of their limited track record or financial trail the ratings assigned is always not bankable and if at they get ratings which is always moderate the interest charged from them is more than 14%. whereas, they are the people who really need finance at lower rates but our banking system is more money for high networth corporates at lower rates. It is an irony that people who wants to grow has to really struggle with our banking system which only favours large corporates and who are enjoying moratarium like 5/25 scheme and interest holidays, waiver of interest etc. Whereas Sarfaesi act is only for SMEs where the property mortgaaged collateral is immediately impounded. What is required is radical change in banking system in India. And you being a banker will be knowing much more functionally. more  
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