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Marketing Support


 

Marketing for the Small Business

Marketing is much more than mere selling. The essence of marketing is to identify needs and offer products or services to meet those needs. Though Small enterprises lack the  advertising support or distribution reach of a large corporation, they complete well  in limited or local  markets or when they cater to a low volume specialised or varying  demand which no large player can efficiently meet . Increasingly, now, the small units and services build the  around their competitive advantage ie., products which are labour intensive, items which cater to niche markets, low volume high margin products, sub assembly tasks, out source services and ancillary   components . After sales service for imported products, AMCs on electronic equipment, reverse engineering (to the extent that it is WTO compatible) are the other areas being encouraged.

With the boom in the servces sector ,small business have emerged in avast array of fields from security to packing, and product design to accounting.

 Export 

 The SSI Sector accounts for nearly 40% of the gross value of output in the manufacturing sector and about 50% of the total exports from the country. Direct exports from the SSI Sector accounts for 35% of the total exports.

An idea about the contribution of small scale sector in country's total exports (in Rs Crores)  can be had from the table given below:

 

Year

Total Exports

Share of SSI Exports

% share

1990-91

32,553,34

9664.15

29.7

1991-92

44,041.81

13883.40

31.5

1992-93

53,350.54

17784.82

33.3

1993-94

69,546.97

25307.09

36.4

1994-95

82,674.11

29068.15

35.1

1995-96

106,464.86

36470.22

34.2

1996-97

117,524.98

39248.54

33.4

1997-98

126,286.00

44442.18

35.2

1998-99

141,604.00

48979.00

34.6

1999-2000

159,561.00

54200.00

33.9

 

 

Export Assistance & Facilities

Export Promotion from Small Scale Sector has received  a number of incentives.

These  include :

1.                   Free import of capital goods/raw material and other essential inputs, and in certain cases duty free or with concessional rate of Custom Duty, so as to ensure higher production for exports.

2.                   With a view to make Indian products competitive in the world markets, a large number of incentives were provided to the exporters from time to time. Such incentives include refund of duties paid on the raw material used in export production by a system of Duty-Draw-Back, Pre and Post shipment Credit to the exporters at concessional rate of interest, etc.  

Export-Import Policy for Small Scale Sector

1.                   Recognition of Export Houses/ Trading Houses, etc.

With a view to recognise established exporters so that they may build marketing infrastructure and expertise required for export production, merchant as well as manufacturer exporters, EOU etc. are recognised as Export House, Trading Houses, Star Trading Houses and Super Star Trading Houses on the basis of certain criteria as laid down in the Export-Import Policy 1997-2002. The eligibility criteria for such recognition is based either on the basis of FOB or Net Foreign Exchange value of exports of goods and services made directly by the exporters during the preceding three licensing years or the preceding licensing year. In an attempt to encourage exports from the small scale sector, the exports made by small scale sector manufacturer-exporters are given triple weightage for the purpose of recognition as EH/TH/STH/SSTH. Accordingly, in terms of provisions contained at para 12.7(a) of the Exim Policy 1997-2002 (amended upto 31/3/99), triple weightage on FOB or net foreign exchange on the export o f products manufactured and exported by units in the small scale industry (SSI)/ Tiny sector/ Cottage sector and double weightage on FOB or net foreign exchange to merchant exporter exporting products reserved for SSI units and manufactured by units in the SSI/Tiny Sector is give. These Export Houses, Trading Houses, etc. are entitled to certain benefits under the current Export-Import Policy.

2.                   Special Import Licence (SIL)

Exporters recognised as Export Houses, Star Trading House, Trading Houses, etc. Are eligible for grant of special Import Licence (SIL) @ certain percentage of their FOB value of exports/NFE. However, 2 percent additional SIL is granted for exports of Products manufactured by units registered as SSI, provided the exports of these products is more than 50% of the exports during the period (provisions contained in para 12.7(b) of Hand Book of Procedure 1997-2000 refers).

3.                   Eligibility condition for Small Scale Exporters for SIL

In case of small scale exporters holding ISO 9000 (Series) or IS/ISO 9000 Series of quality certification, the FOB value (excluding deemed exports) of exports for becoming eligible for Special Import Licence (SIL) @4% of the FOB value of exports is Rs. 30 million and above in the preceding licensing year or on an average FOB value of Rs. 10 million or above during the preceding three licensing years instead of the limit of Rs. 50 million and Rs. 20 million respectively prescribed for others (Para 11.11 (a) & (b) of Hand Book of Procedures 1997-2002 refers in this context).

Salient Features of the Exim Policy - 1997-2002 can be viewed in following site

www.nic.in/eximpol.htm

 

 

     

 

 

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