Business Score Card: New Success Mantra for MSMEs and Start-Ups

Ever since the union finance budget 2019-20 has given reasonable stress and considerations to Micro- Small- Medium Enterprises (MSME), the vital relevance of this sector and Start-up has been the point of discussion in multiple ways, which is obvious.

The current finance budget has provided apt support and facilities in the form of financial facilities, government support, functional and technology back up etc. While these aspects are welcome initiatives, those who intend to get benefitted by these provisions need to understand the current scenario and status of MSMEs and Start up at this juncture.

Keeping the above in view and looking at the unique and critical scope and status of MSMEs, the concept of Business Score Card customized to such units can make specific and time bound business impact. It is pertinent to know and know that the compact set up of MSMES and Start up calls that every entrepreneur who ventures or intent to venture such bunnies initiatives, need to have nothing less than success. This is most vital as the stakes involved and invested by the entrepreneurs involve mainly the Process- Technology, Inventions based implementation apart from of course the financials, and be it big or small in order to get established in the challenging scenario.

Implementation of the Business Score Card would enable the MSME units to frame and formulate the policy keeping in view their business purpose, set up, market standing and executing the business model. Such units are thus benefitted in implementing their functioning in small but critical manner which happens to be their uniqueness in current business situation.

The speciality of MSMEs is in their small size, flexibility in operation, significant contribution despite having the small size, limited recourse, and customer focused accountability, functioning and work culture. This calls for further specific attention @ work for MSMEs and Start up units essentially covering the following policy specific action points:

1 Finance and Revenue: Very often it is seen that the entrepreneur prefers to invest the limited but requisite amount of finance from their own funds. This although provides the ease but at the same time can also lead to getting the self-earnings stuck in the business cycle and can become risky. It is therefore essential that financial need has to be mate with the support of government, institutional, individual funding, and ensuring cash flow availability sure but periodical basis. Proper planning and judgemental aptitude would help the small businessman in this regard.

2 Business Model: Like every commercial venture, the MSME also calls for the specific and customized business model based on its business needs and customers’ requirements. The units which are backed up by such specific business model would certainly be successful. Needless to mention that each such unit need to have separate and different business model in its own business interest.

3 Purpose of Inception and Value Addition: The premise of incorporating and inception of MSME and Start up needs to be contributing the business of the customer significantly. There lies the value addition factor based on the uniqueness, which is essential for the business of such units.

As the title speaks, the size or volume of MSME and Start up would be small in size or volume, but it’s being different matters a lot and even can be a deciding factor in making the small venture big contribution and even profits.

4 Work Culture: Strengthening the business of the customer: The concept and functioning including the service delivery of MSMEs and Start up should not only be customer centric and focused on quality but in short and in linger perspective, it should also strengthen and support the customers’ business. The success factor of MSME lies in such determined business resolution and result orientation.

The entrepreneur thus need to achieve these aspects by creating the customer focused work culture , imbibe it as the way of working with zero dilution and with the determination of self as well as with involvement of the limited number of employees. One should remember that there is no substitute determination and commitment @ workplace in such units. Moreover, with this all the critical aspects related MSME would Measureable and can be timely monitored.

While addressing the Global MSME Conference : 2019 held in Delhi in June this year, the Union Minister of MSME Mr Nitin Gadkari in his inaugural speech , has aptly mentioned that in the current scenario, the country has got about 6 Crores MSME employing around 11 Crores employees. As per Mr Gadkari, the government has a ambitious plan to raise the employment potential to 14 Crores and raise the current rate of 29% GDP to 50 % in next 5 years span.

This essential shows the relevance and importance of MSMEs and Start-up has been realized and appreciated as never before. The active encouragement at the government has cultivated the sense and responsibility among the MSME and Satrt up. The Business Score Card meant for such units would apart from being timely intervention , would also pave the way to achieve the business focused and successful enterprises among the MSME based on Commitment and Customer Centric work culture.