The second seminar in the series of six for Small and Medium Business (SMB) Boost program launched by Facebook and FICCI was recently held in Faridabad. The program was on ‘Technology and Technology Financing for MSMEs’ and it attempted to provide MSMEs w
The second seminar in the series of six for Small and Medium Business (SMB) Boost program launched by Facebook and FICCI was recently held in Faridabad. The program was on ‘Technology and Technology Financing for MSMEs’ and it attempted to provide MSMEs with educational resources and free advertising to help them get started and grow their businesses online.
More than 120 delegates from sectors, including automobiles, plastics and textiles attended the program.
In his special address Somenath Ghosh, Chairman and Managing Director, National Research Development Corporation (NRDC,) said that NRDC sources technologies from across country and possess a databank of over 3000 technologies. NRDC has forged links with and between the scientific and industrial communities in India and abroad and MSMEs can take advantage of technologies available with NRDC.
The session included a panel of experts from SBI, SIDBI and Bell Finvest India limited and discussed what MSMEs should keep in mind while approaching financial institutions and the various products that financial institutions can offer to help MSMEs meet their long and short term financial requirements.
One of the important issues highlighted by SBI that retail is not covered under the CGTMSE scheme for the government that provides collateral free loan up to Rs 1 crore to MSMEs. However, 65-75 per cent of the MSMEs have been benefitted with the scheme.
SBI also talked about the importance of financial ratios and stated that to get a loan for 7-8 year tenure, a company should preferably have its current ratio (CR) above 1, total outside liability (TOL) to tangible net worth (TNW) ratio 3:1, debt equity (DE) ratio 2:1 and debt service coverage ratio (DSCR) above 1.75.
SIDBI talked about their schemes for MSMEs and stated that for promoting innovation and technology, SIDBI’s TIFAC scheme provides loan at 5 per cent interest rate both for manufacturing and service sector. SIDBI also focused on promoting energy efficiency and clean technologies.
Vikas Bhasin, SMB Marketing Specialist, Facebook, hosted the workshop to educate MSMEs on how to use the Facebook platform to drive awareness and engage with their target demographic. During this session, the four steps to success on Facebook were discussed to show MSMEs on how to build a Facebook presence, connect with their target demographic, engage with their fans, and influence customer decisions.