If more and more MSMEs can sell their products in the overseas market, it doesn’t just serve the MSMEs themselves. The government is just as interested in export boost because of the valuable forex it brings in. Therefore, efforts to boost international sales and arranging a business loan for the same can be driven by the MSMEs as well as the government. With the growth in export sales, the MSMEs can automatically improve their business loan eligibility and grow further. We focus on how MSMEs can target the global market with the efforts of the government and their own.
- Using export promotion schemes
The ministry of MSME has several export promotion programs and schemes that MSMEs can benefit from. It includes training and manpower development schemes that involve aiding the participation of MSMEs in international exhibitions and fairs, training the businesses on export packaging, marketing development assistance schemes designed specifically for MSMEs, and felicitating MSMEs with national awards for quality products. The ministry, through its network of field offices, offers technical and managerial consultancy services. This can help MSME manufacturers and exporters to achieve high production and increasing export sales.
- Financial support
In 2019, Asian Development Bank noted that SME loans face a high rejection rate of 56% due to poor business loan eligibility. Financial inclusion has been a perennial problem for the MSME sector. However, government reforms through Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), Micro Units Development and Refinance Agency (MUDRA) and Stand Up India are ensuring a steady flow of business loan, which MSMEs can utilize. Many private players also offer collateral-free export finance for SMEs. This can help MSMEs to arrange working capital to accept export orders, eliminate waiting time in payment collection through factoring, avail lines of credit etc. Besides, financial institutions also offer attractive business loan interest rates that can be availed by MSMEs.
- E-commerce portals
The time may be ripe for MSMEs to join the eCommerce bandwagon and piggyback its ready logistics support and market base. The traditional export cycle can be a long process involving vendors and middlemen, export houses and a host of procedures. However, eCommerce platforms offer MSMEs a share of the international trade with relative ease.
- Digital overseas presence
Businesses are leveraging their online presence to boost their sales domestically as well as internationally. A 24×7 digital presence is possible through business websites and social media profiles. All these platforms provide analytics that MSMEs can use to target specific overseas geographies. Strategies like influencer marketing can also be used internationally to reach out to particular countries or audience base. These expenses are fruitful and should be made, even if it requires applying for a business loan.
MSMEs should not let finance come in the way of growth. As far as a business loan or SME loan is concerned, a quick check of a business loan EMI calculator would help them to finalize their borrowing limits. The government aims to increase the contribution of MSME exports from 48% to 60% in two years. MSMEs can utilize this growing ecosystem and thrive to export more in the future.