 "Faster payments now possible")
The Union Budget may bring enormous benefits for micro, small and medium enterprises (MSMEs) if the proposal for TReDS (Trade Receivables Discounting System) - an electronic platform for facilitating the financing of MSMEs' trade receivables - is efficiently implemented and monitored by the authorities.
Electronic payments to MSMEs by large customers will ensure that payments take place within the stipulated time. It will help curb the practice whereby large customers pay be cheque and often direct MSMEs to deposit the cheque only after a certain period.
Delayed payments by customers and lack of access to credit are big problems for a majority of SMEs across the country, said Raman Saluja, managing director, Oriental Engineering Private Limited, Yamunanagar. These initiatives will enable SMEs to gain access to raw materials and other necessary resources important to run their businesses on a day-to-day basis, he said.
Currently, since funding through the venture capital route is at a nascent stage in India, a majority of start-ups initially rely on family, friends and angel investors to start their own ventures.
Joseph Jude, CEO, DSD Infosec, said, "The recognition given to start-ups by the finance minister is a welcome step. At the same time, we would like to suggest that there should be (greater) ease of doing business, because many starts-ups face regulatory issues which prove to be stumbling blocks to their growth."
Joseph started his own venture last year with his own savings and the assistance of an angel investor. His company is a Panchkula (Haryana)-based information security start-up which is engaged in providing affordable advanced security solutions to MSMEs.
Agreeing, Gautam Seengal, CEO, Telesole Technologies, said, "Start-ups bring in technological innovation and most successful companies in the world have been small enterprises. So this is a good move by the finance minister." With no start-up ecosystem in the northern region, the announcement has come as a boost for budding entrepreneurs, who have ideas and technology but are inhibited by paucity of funds, he said.
Started a year back through his own savings, Seengal's company provides services in the areas of mobile application development, web portals and integration, animation and medical animation. The company is India's first organisation that provides multi-lingual apps and web portals in various locations across the world.
Electronic payments to MSMEs by large customers will ensure that payments take place within the stipulated time. It will help curb the practice whereby large customers pay be cheque and often direct MSMEs to deposit the cheque only after a certain period.
Delayed payments by customers and lack of access to credit are big problems for a majority of SMEs across the country, said Raman Saluja, managing director, Oriental Engineering Private Limited, Yamunanagar. These initiatives will enable SMEs to gain access to raw materials and other necessary resources important to run their businesses on a day-to-day basis, he said.
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Start-ups in the information technology sector have welcomed the allocation of Rs 1,000 crore for a mechanism to be known as SETU (Self-Employment and Talent Utilisation), which will provide support to tech start-ups. Entrepreneurs are of the view that this will motivate individuals with great ideas to demonstrate their entrepreneurial abilities.
Currently, since funding through the venture capital route is at a nascent stage in India, a majority of start-ups initially rely on family, friends and angel investors to start their own ventures.
Joseph Jude, CEO, DSD Infosec, said, "The recognition given to start-ups by the finance minister is a welcome step. At the same time, we would like to suggest that there should be (greater) ease of doing business, because many starts-ups face regulatory issues which prove to be stumbling blocks to their growth."
Joseph started his own venture last year with his own savings and the assistance of an angel investor. His company is a Panchkula (Haryana)-based information security start-up which is engaged in providing affordable advanced security solutions to MSMEs.
Agreeing, Gautam Seengal, CEO, Telesole Technologies, said, "Start-ups bring in technological innovation and most successful companies in the world have been small enterprises. So this is a good move by the finance minister." With no start-up ecosystem in the northern region, the announcement has come as a boost for budding entrepreneurs, who have ideas and technology but are inhibited by paucity of funds, he said.
Started a year back through his own savings, Seengal's company provides services in the areas of mobile application development, web portals and integration, animation and medical animation. The company is India's first organisation that provides multi-lingual apps and web portals in various locations across the world.