Marketing Assistance
In today's world, marketing is much more than mere selling. Small enterprises can hardly match the advertising support or distribution reach of a large corporation. In India, small units sell best in limited or neighbourhood markets or when they are meeting a low volume specialised demand which no large player can effectively cater to. Increasingly, now, the endeavour is to build the marketing activity of small units around their competitive advantage ie., products which are labour intensive, items which cater to niche markets, low volume high margin products, sub assembly tasks, outsourcing jobs and ancillarisation. Sub contracting exchanges are being established through Government and Industry Associations to promote such interface. 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.
Activities such as brand building, sustaining loss leaders, extension of product portfolio, nationwide advertising, huge sales force, competing with large scale imports are tasks best left to large players. Small enterprises in India are realising that the term "marketing" perhaps implies different things to different people. For new start ups, head on competition with established giants makes little sense. A better mouse trap does not, ipso facto, lead to increased sales and more profits.
SSI MDA Schemes
A Market Development Assistance Scheme is currently operated by the Ministry of Commerce with a view to encourage exporters (including SSI exporters) to access and develop overseas markets. The scheme offers funding for participation in international fairs, study tours abroad, trade delegations, publicity, etc. Direct assistance under MDA for small- scale units is given for individual sales-cum-study tours, participation in fairs/exhibitions and publicity. SIDBI operates a scheme of direct assistance for financing activities relating to marketing of SSI products.
Export Promotion
Export Promotion from Small Scale Sector has received utmost priority of the Government. Every Policy formulated for achieving growth in exports have a number of incentives to small scale exporters so as to maximise export earnings. Such incentives 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.
3. Export Policy of the Government has remained liberal as there were hardly any restrictions on export of items from small scale sector. Export Procedures have been simplified from time to time so as to promote exports from the small scale sector. The efforts of the Government have always been to regulate and simplify procedures so as to create a congenial environment for the exporting community.
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