Tag: small businesses

How to Get a Government Loan for Startup? | List of Government Business Loans

The entrepreneurial dreams of Indians have given the country over 94 Unicorns in recent years. This number is expected to cross a century by the end of 2022. Startups across the MSME sector have been at the heart of the Indian economy and generated millions of jobs for people across the country.

It is anticipated that MSMEs alone contribute 8% of the overall GDP, and startups play a huge role in it. But unfortunately, not every entrepreneurial dream gets the chance to take off due to a lack of funds. Keeping this in mind, the Indian government offers various government loans to help passionate entrepreneurs make through.

Budding entrepreneur with a revolutionary idea in mind should use the government loan schemes to transform their ideas into action. For further assistance of all entrepreneurs, we’ve curated this epic guide that has all the information on how to avail of a government loan for a startup.

Who Can Avail Business Government Loans for Startups?
Documents Required to Avail the Government Loan
List of Government Loans for Startups

Pradhan Mantri MUDRA Yojana (PMMY)
MSME Loan in 59 Minutes
Credit Guarantee Fund Trust Scheme for Micro & Small Enterprises
Credit Facilitation Through Bank by NSIC
Credit Link Capital Subsidy Scheme

How to Choose the Best Loan Ideal for Your Business?

Who Can Avail Business Government Loans for Startups?

How to get Government business loans for startups — How to get Government business Loans for Startups

Although the precise eligibility criteria would vary depending on the government loan people take, the general criteria common across all loans are:

The applicant must be an Indian citizen
The applicant must have a robust business plan
The applicant should be more than 21 years of age; the maximum age is capped at 65
The startup must be registered as a partnership firm, sole proprietorship, Limited Liability Partnership (LLP), Private Limited company, etc
The applicant and startup must have a good credit score

Documents Required to Avail the Government Loan

People willing to avail government loan for a startup should be ready with the following documents:

KYC documents, including Aadhar card, passport, voter’s ID card, PAN card, etc
Past 12 month’s bank statement
Self-drafted, sound Business Plan
Previous year’s ITR
Credit Rating/CIBIL documents
GST Documents
Business establishment certificate
Business address proof
Any other document asked by the lending institution

List of Government Loans for Startups

Government business loans have always provided the necessary financial backing to startups. If a startup requires some financial help, the founders might want to apply for any one of the following government loans for a startup.

Pradhan Mantri MUDRA Yojana (PMMY)

Launched in 2015, this government loan scheme offers business loans to non-corporate & non-farm small and micro-enterprises. Under this scheme, startups can avail of a loan amount of up to Rs. 10,00,000. The tenure for repayment for this collateral-free loan ranges from one year to five years. Startups can avail of this loan by visiting any nearest small finance bank, microfinance institution, commercial bank, and non-banking financial company.

The Pradhan Mantri MUDRA Yojana provides loans depending on the development stage of the startup. Hence, the applicants can find the following three segregation under this loan:

Loan Type	Coverage	Yearly Rate of Interest
Shishu	Up to Rs. 50,000	1% to 12%
Kishore	Above Rs. 50,000 to up to Rs. 5,00,000	8.60% to 11.15%
Tarun	Above Rs. 5,00,000 to up to Rs. 10,00,000	11.15% to 20%

Startup founders can apply for this loan if they’re a trader, shopkeeper, vendor, etc. Just visit any lending institution mentioned above or login to a PSB or 59 minutes portal and do the needful. They will guide further. Startups can utilize this loan as a working capital loan through the offered MUDRA card.

Pradhan Mantri MUDRA Yojana (PMMY) – Government Business Loans for Startups

MSME Loan in 59 Minutes

MSME Loan for Startups Approved in 59 minutes

As the name suggests, this loan offered by the government is approved in 59 minutes flat. Launched by SIDBI, this loan is ideal for small and medium-size startups that need capital assistance of under Rs. 10, 00,00,000 at a somewhat lesser interest rate. In some cases, the interest rate is as low as 8%.

To avail of this Public Sector Banks (PSB) loan scheme, startup founders can visit the Central Bank of India, Canara Bank, Bank of Baroda, Bank of India, SBI, etc., for a hassle-free loan application process. Once the loan application is processed and approved, the applicants can get the amount within 8-10 working days. Startup founders can also visit the PSB loan in 59 minutes portal to get more details about this loan scheme and apply.

Credit Guarantee Fund Trust Scheme for Micro & Small Enterprises

Also known as CGTMSE, this government business loan provides collateral-free loans to startups. Launched by the SIDBI and MSME ministry, this loan scheme offers a loan amount of up to Rs. 2,00,00,000 to both new and existing startups. A special preference is given to women entrepreneurs under this loan scheme. Under the CGTMSE, startups can get a collateral-free loan of up to Rs. 10,00,000. But for any amount above this value, startups will have to provide collateral in the form of any building or land attached to the primary business.

Those who want to avail of the CGTMSE loan can approach a scheduled commercial bank or select a regional rural bank classified by NABARD for loan approval. Both new and existing startups can apply for this loan engaged in manufacturing activity, retail trade, and service activity.

Credit Facilitation Through Bank by NSIC

NSIC Launched by the MSME ministry for business loans

The NSIC has signed an MoU with various banks to provide super-fast and hassle-free loans to different startups. Launched by the MSME ministry, this one-of-a-kind loan facility is provided by NSIC under the central government. The best part of this government loan is that NSIC also helps complete the full documentation and legal formalities to quickly avail of the loan.

Small or medium startups needing a short-term loan for maintaining working capital or other operations should consider applying for this loan. It is a reasonably low-interest loan and can be availed by visiting any well-known banking institution like the HDFC bank, ICICI bank, Axis bank, YES bank, etc.

Credit Link Capital Subsidy Scheme

Also known as CCLCSS, it is a loan provided by the MSME ministry and the government of India to startups for technology upgradation. Startup founders that own a manufacturing enterprise, textile startup, fabrication unit, or any business that uses machines and equipment should avail of this loan of up to Rs. 15 lakh to upgrade to the latest technology. This loan helps startups stay up-to-date regarding technology to withstand the competition at local and global levels.

How to Choose the Best Loan Ideal for Your Business?

Now that the information related to top business loans offered by the government to startups is made available, some entrepreneurs might be confused about which one to proceed with. The answer is pretty simple. Every loan discussed above has a different purpose, interest rate, credit limit, etc. The startup founders should go ahead with the one that helps the business stay afloat and even scale in the best way possible.

To apply for any of the above-discussed government business loans, startup founders can head to the respective website of the financial institution providing the loan, fill out the application, and wait for someone from the organization to contact them. Business loans offered by Government are sure to help you accelerate your business growth, so they should be applied for.

FAQs

What are the Government loans for startups?

List of Government Loans for Startups are:

Pradhan Mantri MUDRA Yojana (PMMY)
MSME Loan in 59 Minutes
Credit Guarantee Fund Scheme for Micro & Small Enterprises
Credit Facilitation through Bank by NSIC
Credit Link Capital Subsidy Scheme

How much loan can you get under the MSME government business loan scheme?

Under the MSME government business loan scheme, as an MSME, a startup/business can get a loan sanction of up to Rs. 1 crore within just 59 minutes.

What is the eligibility for a startup business loan?

Eligibility Criteria for Startup Business Loan are:

Resident citizen of India
Minimum CIBIL score of 700
Business should at least 2 years old
Annual income of business should be at least INR 2 lakhs
Applicant Should be between 21 years to 65 years of age

April 11, 2022

Top 10 Small Business Ideas for Villages and Rural Areas in 2022

A village can be a hub of opportunities for an entrepreneur. There are fewer people and more problems to be solved. If you’re settled in a village or got some money to invest, what better way to provide value than to start your own business? These ideas require relatively less investment and can be a great way to start earning locally. The initiative by the government, Atmanirbhar Bharat has only boosted the startup opportunities in rural areas.

Startups based on local problems and businesses usually do well in villages as they’re trusted by the locals. That being said, here are 10 small business ideas for villages that you can start right now:

1. Kirana/Retail Store
2. Rice/Wheat Mill
3. Organic food supplier
4. Oil Mill
5. Arts and Crafts Store
6. Meat Shop and Poultry
7. Handmade Soaps and Candles
8. Tutoring
9. Internet Cafe
10. E-commerce Store
FAQ

1. Kirana/Retail Store

Minimum Investment required for Kirana Store – Rs.5 lakhs – Rs.15 lakhs

Kirana/Retail Store

Most people in a village have to make a trip to the city just to get essential supplies. This means that a journey has to be made simply to get what is needed for daily life. Even within the village the shops are mostly sparse and spread apart. Starting a Kirana store with essentials can be a well worth investment as people always prefer buying locally.

For getting essentials like dairy, everyday items, and groceries, it’s considered a blessing to have a good reliable retail store in the neighbourhood. Since you live there yourself, people are more likely to trust your business and buy your products.

Keep a standard for quality, inventory and supply chain. This will ensure that you get a steady flow of customers for years. A grocery shop can also be a storefront for many other businesses. Mobile recharge, DTH recharge, household items, etc. can be presented as well. This covid crisis proved that how Kirana stores can be a great investment, as when all the stores were shut retail stores were in great demand.

2. Rice/Wheat Mill

Minimum Investment required for Rice/Wheat Mill – Rs.10 Lakhs

Villages are almost certain to have rice plantations. Farmers normally depend on rice mills in the city to process their produce and this can get tedious over time. They have to pay for transportation and labour. Would you rather go to the city or prefer to get the job done in your village? Starting a rice mill business isn’t too much of an investment.

With the price for machines reducing, you just need a place to set it up and you’re good. Having a rice mill would enable villages to process their product from the village itself. By starting this business you’ll be doing the farmers a favour as well. A trustable mill to get the grains processed will always be welcomed by the people.

3. Organic Food Store

Minimum Investment required for Organic Food Store – Rs.10 Lakhs

If you’ve got the time or hobby to take care of plants then starting an organic food business might be the easiest and profitable business to start in your village. Fresh products are always high on value and in demand. Some people unknowingly grow enough organic vegetables in homes to start a small business. It doesn’t necessarily have to be a farm or large-scale produce.

Retail shops in cities nowadays have a separate section for organic produce. This is also one of those businesses that require the least investment. If you have some area to plant and time to look after the crops then it’s just a little effort to turn it into a successful business.

4. Oil Mill

Minimum Investment required for Oil Mill – Rs.5 lakhs

Oil is essential to almost any cooking project. The prices are also rising ever so slightly without you knowing it. Some people would prefer to get natural oil with their own supplies. In villages, it’s common for farmlands to have a considerable amount of coconut trees. Peanut, sunflower, and palm oils are products that people desire.

Starting an oil mill in a village enables its residence to convert products like coconuts into oils. These would normally be discarded and required oils would be bought. This means people wouldn’t have to travel to the city and they have access to it within the village itself. This does require you to buy the machines necessary but it’s sure to be generating revenue soon as you start.

87 Business Ideas with Low Investment and High Profit

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5. Arts and Crafts Store

Minimum Investment required for Arts and Crafts Store – Rs.10 lakhs

This is certainly one of the more interesting and low investment business ideas on the list. If you’re talented in art or know someone that is, starting an arts and crafts store could be a great idea. Tourists often visit villages and are willing to pay to get well-crafted memorabilia locally.

It could be pretty pottery, handmade toys, fans, or even handmade jewellery. Although it requires some talent, to begin with, it’s going to run smoothly as long as the place has visitors. Businesses like gift shops, tourist homes, and art stores are usually season-dependent. More people during the holidays will mean more sales. This is something to keep in mind while starting a business of this sort in rural areas.

6. Meat Shop and Poultry

Minimum Investment required for Meat Shop – Rs.5 lakhs – Rs.10 lakhs

In a survey, it was found that 98% of people prefer to buy essential products from a local store. This applies to meat shops as well. Being a mandatory part of the diet, people are meant to make this purchase. Nowadays shops like these sell all sorts of dairy products too. This can be a good business for anyone who sets it up in a rural area.

Butchers can be hired and poultry can be purchased from a farm. All it needs is good management and strict standards of quality. Once the sales start bumping up, you also have the choice to supply to nearby hotels and restaurants which can add to your source of income.

7. Handmade Soaps and Candles

Minimum Investment required for Handmade Soaps and Candles – Rs.1 Lakh

Another relatively easy-to-start small business is selling handmade soaps and candles. The craft requires no acquired skill and can be learned by another with time. People can be hired to work and eventually, your brand of handmade soaps can become a reality.

The same goes for candle-making. Handmade candles that are aromatic and cheap can sell fast. You can distribute your product with your own store or through other retailers within the area. Depending on how you perform, this is a scalable business.

8. Tutoring

Minimum Investment required for Tutoring – 0.5 – Rs.1 Lakh

Tutoring

If you’re qualified to teach or can hire teachers then starting a tutoring service in a small village is a great business idea. Schools in the area mean students who can use help with their studies. Math and Science are popular subjects for tutoring since students find it relatively difficult. With good intentions and a patient mindset, you can help out many children of all ages.

Like all businesses, if your services through an educational institute are good, it doesn’t take long before the place is crowded with students through word of mouth. Every year more students are in need and this means the business can sustain itself as long as you pay your bills.

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9. Internet Cafe

Minimum Investment required for Internet Cafe – Rs.10 lakhs – Rs.15 lakhs

Indian Villages are being transformed every day yet some places still lack basic internet connectivity. In a world where everything from booking tickets to paying taxes is done online, internet access is a must. If the village lacks this basic access then starting an internet cafe can be very profitable.

Cheap hourly prices along with photocopy and scanning will satisfy most needs of the people. In a village without this facility, they would have to travel to the city. This business does require some initial investment for the internet and computers but it will likely be a successful one.

10. E-commerce Store

Minimum Investment required for E-commerce Store – Rs.15 lakhs

E-commerce Store

No matter where you are if you’ve got a product or an idea the internet grants you a way to turn it into a business. The best part about this business route is the vast array of possibilities. It could be anything from a traditional clothing store to something different like earthen pottery. Technology makes it so easy to start up your online store in minutes.

If you’re new to e-commerce some of these platforms have guides to help you learn the ropes. You could have a store that sells a single unique product or multiple products. These products once online can be bought by anyone in the world if you choose. CMS software makes this process a lot easier. If you’ve already got a successful physical store in the village, getting an online storefront can breathe new life into your business and bring in more revenue. Customers will appreciate the convenience and take advantage of this facility faster than you realize.

Profitable Business Ideas To Implement After Lockdown Is Lifted In India

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FAQ

Which business is most profitable in a village?

Poultry Farming, Milk centre, Flour Mills, and Drinking-Water Supply are some of the most profitable small business ideas in a village.

What are the most successful small businesses?

Cleaning, Social Media Management, Gardening, and Web Design are some of the most successful small businesses.

What business can I start in the village?

Milk Centre, Kirana Store, Electronics, Mobile and Accessories Store, Fertilizers & Seeds Storage Store, and Clothing Store are some of the businesses you can start in a village.

January 5, 2022
How can Small Textile Brands Recover from the Pandemic? | Survival Tips for Textile Industry

In the course of the ongoing pandemic, many businesses faced a downfall in their progress of making a profit. Likewise, small textile brands encountered a behindhand in making a life out of the pandemic market.

While the small textile brands are highly populated by poor people, in order to make a small earning by stitching, embroidering and threading clothes all day. After the government of India proclaimed lockdown, many small scale industry workers returned to their hometowns and migrated, waiting to get circumstances back to normal.

Things were normal when the Government set a time duration to conduct their respective business i.e. 10 am to 6 pm. Whereby, small textile brands worked for 24 hours to meet the targeted profit of the day or month or year. But, the coronavirus unfettered the nation with high cases from April to July 2021, imposing tight lockdown again.

According to the reports, it is stated that 70% of workers didn’t return to work and saw a 60% drop in the sales of textile. On the other hand, the small textile brands faced an epic hurdle in purchasing raw materials from the suppliers as it is unsafe in trading, due to escalating death rates in the country.

Besides, the small textiles have to accept those who are willing to do any task, as the industry is facing a lack of manpower. As is the case, there might be unskilled workers joining the small textiles brands which ultimately leads to the production of low-quality textiles; and people won’t buy poor quality products. Besides, the small textile brands are bungling the concept of technology.

Here, we’re gonna discuss the chance of small textile brands to expand their market from the effect of the ongoing pandemic.

Impact of the Covid-19 Pandemic on the Textile Brands
Things that hampered the production of small Textile units
How can Textile brands survive the Pandemic
FAQ

Impact of the Covid-19 Pandemic on the Textile Brands

The whole Covid-19 pandemic situation made the economic status of the entire world go upside down. As per the study, the 2020’s economy has gone down by –3%.

The world faced a major fallback economically correlated to the 2008–2009 financial crises and the surveys say that it may take at least a year to attain the normal state and solidify their thrift. India is one of the major countries that encountered a high difference, definitely not in a good way.

Considering the available resources and fast-growing markets many foreign institutions were ready to invest in India, and that may have cultivated a huge disparity in the availability of employment.

The textile industry has a huge part in employment creation in India. The closing of the mart ended in creating an unpleasant reaction in the growth of the textile industry; few minor cloth crews curbed their exposition.

Due to the low profit, many units limited their human resources and there were pay cuts. Out of all states, the worst pretentious states in cloth manufacturing during the epidemic are Punjab, Gujarat, Maharashtra and Tamil Nadu.

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Things that hampered the production of small Textile units

Fewer Transportation Facilities

Transportation is the primary element that makes a huge effect on production. The businessmen need transport to supply the product, to get the raw materials and to deliver the goods.

Due to fewer transport facilities during the lockdown, the transportation of goods and buying of fresh products for sales were halted. The people were not even able to deliver the finished products.

No Labours

As transport was not available frequently, the migrant workers shifted back to their hometowns. Their wages were cut short and the companies curtailed human resources.

Bihar, Jharkhand, Uttar Pradesh and Orissa are the states that produce large amounts of human resources, considering the less income, transport problem and their health risks, they moved to their places. So the limited availability of the labourers resulted in the production.

Lack of Raw Material

During the pandemic, the demand for the raw crops reduced and due to that agriculture underwent. As the overall demand for the crops reduced, the production of cotton and silk were also reduced, resulting in less or no availability of raw materials. And as the chemical units were focusing on other significant courses, the dealings of synthetic lessened and the synthetic textiles were affected.

No Capital

Many small textile units were shut down as the production and earnings lowered.

Market size of the Textile Industry in India

How can Textile brands survive the Pandemic

Well, in some way or the other, many businesses are recovering the loss from the effect of the pandemic by engaging efficiently in producing and serving the goods to the customers. And in the case of small textile brands also hyped their production in many ways during this ongoing pandemic.

Unlike other industries, small textile companies lack digital marketing and ergo became a great drawback in achieving their goals.

Here are some ways that the small textiles industries could employ to stay resilient in the market from the effect of the ongoing pandemic.

Make sure workers are Safe and Vaccinated

During the first lockdown in the nation, many small scale workers migrated as per the government rules. So, the first thing that small textile brands should take care of their workers is to prevent the fatal virus across the nation, whereby the necessity of healthcare nearby, nutritious food and safe & hygienic shelter should be rendered to the workers and make sure their vaccinated.

Stay Informed with the Latest Government Guidelines

Secondly, small textile brands should stay informed; the Government should inform the measures and up-to-date information regarding the pandemic to the small textile industries. As is the case, they will take necessary protocols assigned by the Government in order to prevent the spread of coronavirus.

Make sure your financially stable to operate your business

The small textile brands should be financially stable in meeting requirements such as paying wages to the workers, purchasing raw materials, light & power, fuel and transportation and so on.

Furthermore, industries should be producing goods & services at a minimum cost of production and maximum optimization of the product.

Stay in touch with your key stakeholders

Small textiles brands should be in touch with their key stakeholders in order to sustain an affiliate relationship with them.

Provide Recess time for Workers

Brands should provide recess time for workers, who are working 24/7, as this would aid to reduce the cost of excess labour & augment efficiently and effectively in the production of goods and services.

Make necessary changes according to the environment

Lastly, the small textile brands should accomplish the set of goals without any objections in doing so and respond to any changes happening in the working environment.

If the above points are followed by the small textile brands, then the chances of getting opportunities in the market are high during the pandemic.

What will be the Scenario after Coronavirus Outbreak?

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Conclusion

The countries confronted a huge economic deterioration. No country was nimble to evade the losses that the pandemic resulted in. The economic rate of the country is poorly approximated to the financial crisis the world faced in 2008–2009. But it doesn’t mean it’s not possible to improve it.

Fetching back to regular and recouping the stability like before the pandemic may take a few months or also years. And the small textiles that faced a great loss have to find a way to improve their state. They have to create new strategies to sell their products in a modern way and yet not skip and obey the government protocols.

FAQ

What is textile business?

The Textile industry consists of the design, production and distribution or marketing of yarn, Fabrics or readymade clothing.

Which city is famous for textile in India?

Bhilwara is India’s largest manufacturer of fabrics and is also known as Textile City of India.

Is textile industry profitable?

Yes, textile industry is considered as a profitable industry for new and aspiring entrepreneurs.

October 2, 2021
Is Amazon Killing Small Businesses? [Case Study]

The pandemic has transformed the world into a digital one. There has been observed drastic change with the people in the field of shopping. And with such an advancement, people are entirely relying on the internet for any purchasing.

From household products to festive clothing, everything is available on the Internet and people are purchasing these as well. A wide fraction of people prefer online shopping apps for any purchase.

Among these, Amazon is one of the most established shopping applications across the world. In fact, Amazon is counted among the triumphant companies that hold the position to beat the consumer and retail industry!

With the popularity of Amazon, many small businesses consider it quite dominant in the retail industry. People are acknowledging how Amazon’s immense success is causing great loss to small businesses. Whether these are accurate and true, can’t be asserted right away! But a question arises, Is Amazon killing small retail businesses?

Well, looking back at some previous analytics, this accusation on Amazon isn’t something new. As of 2019, Steven Mnuchin, the United States Treasury Secretary also mentioned that Amazon, being a harm to the retail industry. To discuss this matter briefly, we have presented this case study- Is Amazon killing small businesses? Let’s begin!

Amazon and Small Businesses
Consumers’ perspective during the Stay at Home orders
Amazon’s perspective on being responsible for the downfall of Small businesses
Modifications by Amazon for Success of Businesses
FAQ

Amazon and Small Businesses

Amazon, being the world’s one of the biggest online shopping companies, managed its way to success even in the dreadful pandemic of 2020. It made a huge profit towards the sales. At the beginning of 2020, Amazon made a profit of $5.2 billion beating its previous record of $2.6 billion in 2019.

The most significant thing about Amazon’s success is that the company modifies its policies and practices based on the resources and customers’ requirements. The company adjusted its services during the pandemic, that’s why it made such a remarkable profit.

With the immense success and fame of the company, the accusations on Amazon for killing the small businesses increased more vibrantly. The small businesses entirely blame Amazon for destroying the consumer and retail industry. Many examples and proves came out claiming Amazon for killing the small businesses but, many of these couldn’t be proven accurate.

Amazon Annual Net Revenue (in billion U.S. Dollars)

Consumers’ perspective during the Stay at Home orders

With the dreadful condition of Covid-19, people have become more cautious with their lifestyle, especially in the shopping part. People across the globe changed their offline shopping techniques into digital ones. And on that note, Amazon experienced massive progress and development. Because of this, Amazon made such a great profit even during the global crisis.

Amazon spent over $4 billion on further Covid-19 costs. And with this, the company took over various services adaptation. Amazon functions with great strategies and process improvements.

But even after this, Amazon is considered the destroyer of small businesses. It is highly criticized by the critics in a bewildering manner. But the company believes in helping and driving more audience to the small businesses but not in being a destroyer for them. However, the company remains on the top, regardless of its various accusations.

No matter how many proofs come out, any company itself cannot be blamed responsible for the downfall of small businesses.

Tools And Techniques Employed by E-Commerce Sector Post COVID-19

How is the e-commerce sector dealing with the changes brought about by Covid-19?” let us try to answer this question in detail and discuss emerging trends in the e-commerce industry.

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Amazon’s perspective on being responsible for the downfall of Small businesses

On asking about the accusations made on Amazon, Jeff Bezos, the founder and executive chairman of Amazon mentioned in an interview that the company itself holds a very strong and beneficial relationship with its sellers, who are small and medium-sized businesses. Amazon believes in helping the sellers to gain profit and success as it would bring more choices that could actually lower the prices of their products.

In fact, Amazon works with around 1.5 million small to medium sellers, just in the United States. As the more such sellers would join Amazon, the more benefits the customers will get such as free delivery, shipping, and low prices.

Although Amazon is affecting the small businesses, it means no harm or demise for them and brought a performance standpoint in the marketing field. Amazon has brought a great advantage in the retail industry as reaching customers has become very easy and profitable.

With the digitization in every sector, people are becoming more connected with E-commerce platforms. That’s why small and medium-sized businesses are also enrolling in the digital platform as an advanced marketing tool.

There’s huge competition in the market among established brands and small businesses. And those who would adapt to the changes that come to them will be known as being the biggest.

Modifications by Amazon for Success of Businesses

Amazon has taken the retail industry to an advanced level. And with its popularity and services, it has brought absolute convenience for the sellers to reach out to more customers and suppliers. Many concluded this as contraction to the claim made on Amazon.

It is entirely undeniable that Amazon has basically lifted up the performance level in the retail industry. Due to this only, dozens of independent brands and small businesses are holding the potential to compete with large corporations and established brands.

As the consumers on the global level are increasing rapidly and so as the digital marketing platforms. People are preferring online shopping more promptly. On that note, small and medium-sized businesses must acknowledge this advancement and work accordingly. This would help them to embrace the changes that come on the way, instead of complaining.

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Conclusion

Amazon has worked tremendously to gain the customer’s support and its success. In order to do so, it has widely increased the competition in the retail industry which has not been well received by the small and medium-sized businesses.

Various claims have been made on Amazon, accusing it of killing the small business. But as it has raised the competition, it has also brought several opportunities for sellers (including small and medium-sized businesses) to reach the customers more frequently and with good services in hand.

The whole world is digitizing and as people are becoming more reliant on digital sources for any purchase, it’s a great opportunity for small businesses to modify their services and take up the stand with the E-commerce platforms. This would bring immense advantage for the small businesses. Just that, Amazon has accepted the changes that came for it and adapted it as well. That’s why it has grown to be the biggest online shopping company.

FAQ

Is Amazon killing small business?

Amazon is helping small business and retailers. As because of Amazon independent brands and small businesses can compete with large corporations and established brands.

What impact does Amazon have on small businesses?

The more sales businesses do the more money Amazon generates. Amazon has also invested more than $30 billion in logistics, tools, services, and employees to help small businesses.

Do small businesses sell on Amazon?

Yes, many small businesses are selling their products on Amazon.

August 27, 2021
Impending Challenges in 2021 for Small Businesses

Small businesses are in fact the biggest assets of any nation, especially developing countries. The amount of employment that they generate and hence the ripple effect that it gives to multiple families at different levels helps in the upliftment of the economy as a whole in its self.

This is one of the major reasons why every government put in a lot of effort to boost small businesses. However, 2021 will not be a cakewalk for them due to various reasons. The pandemic and lockdown restrictions only add to their pile of problems.

Mounting Uncertainties
Lack of Physicalities
Technological Divide
Unemployment
Changing Market
Work-Life Balance
Skewed Production
FAQ

Mounting Uncertainties

Long gone are the times when businesses used to plan their events at the beginning of every business year and stick to them. Now due to the uncertainties regarding the intensity of waves, casualties and restrictions in place, it is extremely difficult for these firms to plan their activities to ensure a proper flow of revenue or interactions at least.

The fear of plans being shut down and the resulting economic loss prevents them from planning things at the site of slight improvement as well. This lack of planning further aggravates the uncertainty and adversely affects the companies

Lack of Physicalities

Considering the fact that Coronavirus situations are bleak and uncertain everywhere it is likely that the remote working will be continuing during a larger part of 2021 as well. Although it has proven to be a very effective method, it comes with its own disadvantages. Many small businesses find it difficult to run their business in the absence of off-line interactions especially due to the nature of the kind of business they do.

Technological Divide

The lack of adequate technology has rendered a lot of small businesses rather helpless. The continuous technological advances on the other side further push them back in the race. This technological divide costs small businesses a huge sum of money.

The pandemic further aggravated the situation by creating a circumstance wherein they had no other option but to update their technology. While this has also helped quite a number of small businesses to adopt newer technology which they would have never done otherwise, it has also led to the permanent shut down of many others due to their inability to cope up with this competition.

There is still continued neglect by the government with regard to helping small businesses to bridge this technological divide. And hence it will continue to be a huge challenge for them in 2021 as well.

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Unemployment

As most of the economic activities came to a standstill since March 2020, many organisations had to cut down a lot of employees to sustain themselves without permanently shutting down.

Unlike most of the cases, this unemployment was detrimental to the smaller businesses in its self and not just to the employees. On one side they had no other option but to let go of even their most valuable workforces while on the other side it cost them a fortune by letting them go.

With the lack of a proper workforce and the continued financial constraints that these small businesses are facing, unemployment and the loss caused by it will continue to be a challenge for them.

Changing Market

Earlier the changes in trends and the strategies required to stay afloat and even prosper were more far fledged than now. But these days patterns and desires of consumer behaviour are changing so drastically that every business needs to adapt to newer marketing strategies to be active in the industry.

This can be clearly observed with regard to the larger changes that have come to the television industry wherein the patterns of viewership changed drastically post lockdown and almost all businesses had to change their marketing strategies to fit into this new change.

Such a highly dynamic market situation will stunt the growth of small businesses. Unless and until they evolve techniques to shift from one strategy to other in a cost-effective manner the current situation will continue to be hostile for them.

Work-Life Balance

The lack of work-life balance is one of the biggest challenges that is going to affect the productivity of small scale businesses. Earlier people were clearly able to divide their professional and personal life by giving proper time to both.

With the advent of work from home, people had no other option but to mix both of them together endlessly which makes them feel that there is no end to work and there is no time for themselves away. This makes them more burned out.

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Skewed Production

The varying restrictions across the globe have also affected every component of businesses. Small scale firms being not so established becomes the worst affected. Those companies whose materials are sourced from other states or countries get affected due to the restrictions that are in place there. This lack of uniformity staggers the activity of the firm as a whole.

When production gets affected it has a ripple effect on each and every aspect that follows; up to the delivery of the product to the customer. Improper production also means increased cost. Since the pandemic situation is not completely tackled, small businesses will continue to be at the risk of skewed productions and the confusion and stagnation that follows.

Conclusion

An analysis of all the challenges that small businesses are facing in 2021 brings one conclusion. All of the obstacles can be tackled with effective support from the stakeholders and the government. Addressing the issue of the technological divide is the most important thing to be done immediately.

As far as the restrictions are concerned governments can plan them in such a way that it does not hamper economic activities while controlling the extent of overall movement of the population. The businesses should also adapt to effective mechanisms wherein they can shift their strategies and tools as the business climate demands.

FAQ

What are the challenges of small business?

Finding the right talent, Tax complexity, Cash flow issues and lack of adequate technology are some of the challenges faced by small businesses.

What is one of the common difficulties faced by small business owners?

Lack of cash flow is one of the most common difficulty faced by small business owners.

How many employees should a small business have?

A small business should have 50 or fewer than 50 employees.

August 6, 2021
10 Ways How you can Secure your Startup against Cyber Risks in 2021

Startups and small businesses are at serious risk of cybercrime. Ransomware, IoT attacks, DDoS attack and deepfakes are threats to growing companies who lack the professional protection that larger firms may enjoy.

It’s crucial that startups and small businesses invest in IT security to provide the protection they need to power productivity. If you’re struggling to identify where to start, here are 10 ways to set up cybersecurity for startups.

Why Startups must get serious about protection
Invest in Antivirus protection
Commit 100% to the cloud
Protect all Passwords
Create Professional policies
Restrict Network access
Safely store sensitive data
Establish a culture of security
Have a Recovery backup plan
Invest in protection
Work with a IT partner
FAQ

Why Startups must get serious about protection

Almost half (46%) of all UK businesses were the victims of cyber-attacks, the Government found in a 2020 survey. Across the world, 53% of small businesses are targeted by hackers and online criminals, says Cisco – and the threat level is increasing.

Of those businesses attacked, 33% experienced a cyber breach once a week in 2020, costing almost £1,000 each time to fix the problem. As well as incurring expenses, companies can suffer from data losses and damage to reputation that can be more difficult to claw back.

While startups may not have established a profile, missing protection makes them easy targets for online criminals. A lack of investment in infrastructure, personal safety, and a robust IT security culture means that startups can be easy pickings for online predators.

The National Cyber Security Centre has created a set of simple guidelines for startups, but these are far too basic for most businesses.

At Syntax, we work with businesses of all sizes to safeguard their IT systems and provide IT security solutions that deliver the highest levels of protection.

Invest in Antivirus protection

While the Government may have recorded a fall in viruses or other malware (from 33% to 16%), strong antivirus software should still be the first investment you make.

Online threats have increased by almost 30% during the Coronavirus pandemic, as digital criminals attempt to take advantage of lapses in online defenses.

Antivirus software acts as a first line in protection, alerting you to threats and safeguarding your systems from identified risks. While it may be tempting to use free antivirus software, avoid it. Investing in a professional antivirus package is the only way to enjoy total peace of mind and protection.

Installing your antivirus software is just the start; you’ll also need to ensure that everyone in your organisation installs updates as soon as they’re released as new threats emerge every day.

Think you’re protected using a Mac? Macworld provides a list of all threats, and it’s growing every day. Whatever platform you use, invest in anti-virus software.

Commit 100% to the cloud

Storing documents and data in the cloud isn’t just convenient; it can be much safer too. As a business owner, you maintain control and oversight of all information. You’ll have an audit trail, too, enabling you to see who is accessing what data and when. It’s easy to generate audit logs in Microsoft 365, providing total transparency.

By using cloud services, you can hopefully avoid dangerous practices, such as saving to a local computer, emailing files through a web-based provider, or using external storage devices such as USB sticks.

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Protect all Passwords

An incredible 85% of all data breaches were caused by human error, including poor password protection, Verizon found in its 2021 survey. The problem is your people. A Google survey found that 65% of people used the same passwords for multiple accounts. This gives hackers and online criminals easy access to your systems.

Staff must understand the risks of poor password etiquette, including reusing the same password multiple times. Other simple but common issues include writing passwords down or sharing them with other employees.

Create Professional policies

The Federation of Small Business recommends you create a password policy to ensure staff choose (and don’t reuse) passwords, and we agree. But you should go further. Every startup and small business should develop professional policies to safeguard IT systems.

A strong policy will spell out precisely what you expect of each staff member, including what they shouldn’t access, how to manage data, keep passwords secret and more. An IT policy will also ensure that your organisation adheres to legislation, including GDPR and UK data protection rules.

Restrict Network access

Cloud platforms enable you to set tiered access levels, allowing only those who need the information to access it. This may mean that only your accounts team, for example, can access information on invoices and outgoings.

It’s critical as insider threats – where someone within your organisation intentionally accesses information they should – are on the rise. Research in 2020 found that 60% of all data breaches are caused by insider threats. Don’t give anyone – outside or inside your organisation – a chance.

Safely store sensitive data

Data is likely to be an organisation’s greatest asset and its most significant risk. Protecting data isn’t just a legal duty; an information breach can lead to long-lasting damage to your reputation too.

Cloud storage systems provide extra safety for your data. For example, you can set tiered access, provide password protection and see who has accessed data and when. Secure cloud storage systems are also external to your business and regularly backed up, removing one stress point from your IT security.

Establish a culture of security

We’ve identified that your people are often the weakest link in your IT security, but it doesn’t have to be that way. Establishing a positive security culture ensures that all staff – from the boardroom to the backroom – take IT security seriously.

Each member of staff should understand their role in keeping your startup safe. Installing updates, protecting passwords and identifying potential threats are just some of the ways you can create a culture of IT security.

It’s also critical that staff have the confidence to immediately raise an alert if something goes wrong (and unfortunately, it will).

Have a Recovery backup plan

It’s highly likely that you’ll experience an IT security threat, so we recommend that every startup has a robust disaster recovery plan. Each plan should include details of how you’ll manage your hardware, software and essential systems in a crisis.

The priority here is to ensure the safety of crucial data and to restore systems as soon as possible so you can continue to work.

Using cloud-based systems and software can reduce your time offline, restoring productivity – and profitability – as quickly as possible.

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Invest in protection

Smaller businesses invest proportionally smaller amounts in IT security than larger firms, stats show. This increases their risk of damaging data breaches and online threats.

Every startup should ensure that IT security is a priority and invest in it. There’s no one-size-fits-all approach here; the amount you spend depends on your organisation, systems, and the security risks you face.

Our advice is to regularly review IT security spending and avoid the temptation to cut costs or corners.

Work with a IT partner

Managing IT security is a full-time job, but too many startups struggle to balance priorities, compromising their protection. Working with an experienced partner can prove to be a cost-effective way to manage your IT systems.

Outsourcing support can be cheaper and more effective than in-sourcing the task to an already over-stretched IT team. Experienced providers can deliver 24/7 support and guidance, as well as protecting you from new and emerging threats.

FAQ

Do startups need cybersecurity?

Yes, If you’re a small business or a startup you are vulnerable to hackers and so you should step up your cybersecurity to Keep your startup safe from hackers, data loss and breaches.

What are the 3 major types of cybersecurity?

Cloud Security, Network Security, and Application Security are the 3 major types of cyber security.

Why do small businesses need cybersecurity?

Small businesses should invest in cybersecurity to protect their own business, their customers, and their data from growing cybersecurity threats.

August 2, 2021