Corporatization for MSMEs - msme-mentor.in

Corporatization for MSMEsOpinion Leader SpeaksRajiv ChawlaPresident,Faridabad Small Industries Association“In view of intrinsic advantages, the natural habitat for MSME startupsremains as Proprietorships or Partnerships. This is reflected inpredominance of Proprietorships or Partnerships in the Indian MSMEsector. It takes no time, energy or money to start as Proprietorships orPartnerships as is required to incorporate a Company. There isrelaxation too on TDS and FBT provisions for small Proprietorships.However, after a micro enterprise reaches a certain level ofstabilization and is bubbling with growth orientation, it aims to rise inscale and stature. To realize this, it has to gear up for competitionahead by strengthening itself internally as also externally. Innovationand improvisation in all spheres is called for, be it product, processes,pricing, packaging, marketing, advertising etc. Capacity building,expansion, future growth and preparedness are a must. It needsadditional and alternate resources to tap new openings as alsoenhance its delivery capacity. At this stage, turning into a corporateentity acts as a growth driver. It enables MSMEs to enhance their USPsby appropriate upgradation, market positioning coupled witheffective management to become more credit-worthy and, therefore,attract and tap new sources and instruments of finance.”Walk-In Kit09