Provide empirical evidence of your proposed solution's success/impact at present. If your project is in the idea phase, please provide evidence that speaks to its potential impact
The factors affecting for a SMEs to develop is obtain appropriate technology, Market development and financial needs. Most of the SMEs are entrepreneurs work hard to take the initiatives in establishing their enterprises with their savings, partnerships and loans obtain by financial institutions and other sources like leasing. Hence in expanding or developing their existing product and services are being inhibited by the lack of capital investment as bank insist collateral to provide this needs that takes long procedures and time along with high interests which the anticipated cash flows cannot absorb. There are no success stories at the moment as this proposal is in idea phase. But once explore the nature of existing partnerships we could see these subsequent partnerships created in some of the enterprises in expanding, found it had been done though either base on mutual trust relationships or friendships which are showing good results. Taking this example ,if we could create awareness along with actual data, information ,feasibility and potential assurance for the investors who wish to earn more on their savings and belongings, it would create an opportunity with a platform to enter in fulfilling their interests and needs towards investments. As everything depend on the mutual trust, once we could create that trust through the proposed system, the impact of growth of these SMEs would definitely add a significant share to National Growth indicators. Further the employment created would be enhancing the unemployment as well as poverty as most of the SMEs are base on rural economy.
How many firms do you expect to reach?
In the first year we expect to reach 2000 potential public investors/ 200 entrepreneurs and expect to establish 50 nos successful partnerships in developing and upgrading the SME sector.
What is the volume of private SME finance you aim to catalyze?
Promoting a Micro up to Small level we expect around minimum Rs. 1 million per enterprise and we expect to raise Rs 20 million for micro sector. In case of Upgrading small to medium sector need average Rs 5 million for an enterprise costing Rs 150 million.
What time frame will be required to reach these targets?
The first year will take to promote and introduce the idea along with awareness campaigns and data collection. We expect to achieve 10 partnerships within the first year and to reach the target of creating 50 successful partnerships will take 3 years as this being new interventions and need some time to establish. In stabilizing this it need hard and trustworthy approaches and interventions to convince the both potential investors as well as existing entrepreneurs on mutual benefits, technology application and good management practices & knowledge
What would prevent your solution from being a success?
Being a primary programme, the reluctant of entrepreneurs to reveal actual facts about their business due to exposure to tax and other reasons would be a bottle neck to address in developing the proposed partnerships as without actual facts, it is not that easy to convince an investor to create a trust to become a partner or share holder in that particular enterprise. Hence this is a very serious issue to be overcome with appropriate strategy. Further unwillingness of exposing their businesses for public also play a vital role in preventing reach the project goals.