Budget 2019: 13 Key Takeaways for Startups and MSMEs

Business How To’s

12 July 2019

Budget 2019: 13 Key Takeaways for Startups and MSMEs

  • Posted by Awfis Editorial

Nirmala Sitharaman, the first female Finance Minister of India, presented her debut budget in the parliament on July 5, 2019. She unveiled a slew of reforms and initiatives for MSMES and startups – from reducing corporate taxes to interest subvention. Let’s take a look at 13 key takeaways for small businesses that this budget has to offer.

  1. Exclusive TV Channel for Startups

Mrs. Sitharaman proposed an exclusive TV channel for startups to be operated under the Doordarshan umbrella and managed by startups themselves, which will discuss everything and anything related to startups. The channel will also help in matching startups with venture funds and investors.

  1. Tax Reduction

The Finance Minister extended the lower rate of 25% corporate tax to smaller companies with an annual turnover of up to Rs 400 crore, from an earlier cap of 200 crore. This is expected to encourage more business and profits in the MSME sector.

  1. Budget Allocation Under the Interest Subvention Scheme

The Interest Subvention Scheme was introduced in 2018 by PM Narendra Modi in an attempt to improve the ease of doing business and provide MSMEs better access to market, credit and technology upgradation. The Finance Minister allocated INR 350 crore under the interest subvention scheme for the financial year 2019-20, for 2% interest subvention for all GST-registered MSMEs on fresh or incremental loans.

  1. Uniform Payment Platform for MSMEs

Mrs. Sitharaman announced that the government will create a payment platform for MSMEs to enable easy and secure filing of bills and payment. This is expected to eliminate delays in payment and boost the investments in MSMEs.

  1. Pension Benefit for Small Retailers

For retailers with an annual turnover of less than Rs. 1.5 crore, the FM has announced a pension scheme under the Pradhaan Mantri Man Dhan Yojana, which is expected to benefit more than 3 crore shop owners.

  1. Online Portal for Quick Clearance

The FM also announced that the government is planning to create an online portal for loan clearance for MSMEs. According to her speech, the portal will be able to clear loan of up to Rs. 1 crore in less than 59 minutes.

  1. Legacy Dispute Resolution Scheme

More than Rs. 3.75 lakh crores has been blocked in litigations in the pre-GST regime of service tax and excise so far. The budget has proposed a dispute resolution-cum-amnesty scheme called Sabka Vishwas Legacy Dispute Resolution Scheme, which will allow prompt closure of such disputes, with reliefs varying between 40% and 70% of the tax dues.

  1. Minimal Scrutiny of Funds Raised

For startups and investors who file all the required and relevant declarations, the budget proposes to introduce an e-verification mechanism that will not require any tax scrutiny with respect to the valuation of share premium.

  1. ASPIRE scheme for agro-rural industries

The budget proposes setting up of 80 Livelihood Business Incubators (LBI) and 20 Technology Business Incubators (TBI) in 2019-20 to develop up to 75,000 skilled entrepreneurs in agro-rural industry sectors under the Scheme for Promotion of Innovation, Rural Industry and Entrepreneurship (ASPIRE).  

  1. Encouragement of Digital Payments

The budget proposed a 2% tax levy on cash withdrawals of over Rs. 1 crore in a year to encourage digital payments across the MSME sector.

  1. Elimination of MDR charges

According to the budget, businesses with an annual turnover of over Rs. 50 crore must offer low cost digital modes of payment. The customers and merchants of such businesses should not be imposed with any merchant discount rate (MDR) fees.

  1. Faceless IT Assessment

In an attempt to reduce harassments faced by taxpayers, the budget has proposed to launch an electronic mode of income tax assessment with zero human intervention.  

  1. SFURTI Scheme

The budget proposes setting up of 100 new clusters during 2019-20 under the Scheme of Fund for Upgradation and Regeneration of Traditional Industries (SFURTI), enabling 50,000 artisans to join the economic value chain.

Conclusion

Startups and MSMEs are crucial contributors to job creation and, consequently, a strong and stable national economy. The measures announced in the 2019 budget, if properly implemented, are sure to help incentivize young firms in boosting job creation and thereby bolstering the startup and MSME ecosystem in the country.

7 Types Of Colleagues Found In Every Successful Organization

Business How To’s

25 August 2021

7 Types Of Colleagues Found In Every Successful Organization

  • Posted by awfis

A dynamic enterprise usually thrives on a cocktail full of spunky personalities. Each brings in their unique talents and habits that fit like perfect pieces in a puzzle. From the sassy boss to the clingy colleague, here’s some types that you are bound to bump into…

7_types_of_colleagues_found_in_every_successful_organization
1. The compulsive foodie(s)

Instead of clients, this one’s got all the city’s restaurants on speed dial. From Domino’s to the latest hotspot in town, their peckish appetite will ensure that there’s plenty food circulating all around office. Whether, you’ve got random board meetings or your team’s working at odd hours – you’ll never be hungry ever.

2. The witty assassin

This one will ‘slay’ you more lethally than Beyonce or Eminem ever will.  Come hell or sunshine, he or she’s got the perfect comeback for every painful person and situation. Known for having their fair share of haters, they’re also true entertainers. But, it’ll do you good to remember that it’s a war of words that’s not worth playing….

3. The jack-of-all trades

From sweet talking to https://www.https://www.awfis.com/inspiration/wp-content/uploads/2016/06/shutterstock_3835072871.jpg.com/inspiration/wp-content/uploads/2016/03/Awfis-is-your-new-Office1.jpg to executing any kind of project – you name it & it is done.  This breed seldom takes no for an answer.  Whatever is touched turns to gold and they will leave you wondering how it got done. If you need a helping hand, an insightful shrink, or someone to walk your dog, rest assured you can depend on this pro multi-tasker with your eyes shut!

4. The road runner

This famous few will be on their toes, always on the phone, pretending to be busier than the Kardashians.  Your’re more likely to see them at the office door as a permanent fixture. All the worlds’ people know this person and this social butterfly is likely to know everyone. Constantly on the move, you’ll need this PR pro to take your business to places.

5. The tech geek

You’ll always find this genius, behind a bunch of wires, computers and applications. Broke a light bulb, had a short-circuit or you found your desktop suddenly crashed… Fret not. Dexter’s got the perfect fix. Quiet and demure, he probably takes pride in being faster than a normal computer. But, if you’re a know-it-all, then you might not like this mister…

6. The swear champion

This person believes in pure tough love. Yeah, ouch! When the pressure builds up and clients turn demanding, then be sure to hear a spew of gushing swears. Whether it’s loud and clear or below the belt, this one is feared and they sure know how to get work done. Tip: They are usually in positions of power and you’d rather never cross the line with them

7. The constant complainer

This one’s a problem magnet. Even on the brightest day where there’s plenty of reason to rejoice, this type loves telecasting their worries. This includes the coffee machine, that might have broken down or the weather that suddenly turned rotten – there’s always something to say. However, their minute observation constantly keeps you in check and hey! Be assured that you’ll get plenty feedback for the tiniest things on agenda.

But whether you like it or not… take each of these types with a pinch of salt, because they make for the big brains and even bigger learning curves…

Things Every Entrepreneur Can Learn From Pursuit of Happyness

Business How To’s

25 August 2021

Things Every Entrepreneur Can Learn From Pursuit of Happyness

  • Posted by awfis

Pursuit of Happyness is an iconic movie which was released in 2006. It has been 10  years since it released, but never fails to inspire the viewer. It fills the person with a determination to fight for their dreams irrespective of the hindrances that come along.

Based on a true story of Chris Gardner, a man who loses everything , but manages to get everything because of his perseverance. They show how Chris and his son battle a period of homelessness selling medical bone density scanners while being enrolled in an internship as a stock broker.

pursuit_of_happyness poster

Here are the important things that every entrepreneur can take from the movie:

1. Be ready for extreme hardships:

We’ve seen in the movie that Chris Gardner goes through numerous hardships. Whether it comes to selling his bone density scanners or taking up an internship while managing to take care of his son and provide for him. He doesn’t lose his determination even when everything seems bleak. It’s important not to give up and go on and try to overcome the problems that we come across, daily.

2. Aim for the stars

Always aim high! Believe in yourself and everything can be conquerable. Chris Gardner took a chance and went for an option of interning as a stockbroker where only one person at the end would be given a job! He took a chance when the odds were against him and proved that all you need is an opportunity to achieve things when you set your heart at it.

3. Put In all the effort

When you want to achieve something make sure you give your best shot. A half hearted attempted is a good as not giving it a try. Chris Gardner has many close calls, where anyone else would have given up. He even fixes a bone density scanner at the homeless shelter to make the ends meet.  He has proved that if one wants anything eagerly in life, they should work as if their life depends on it.

4. Never let anyone’s judgement cloud your decision

Do not forget to believe in yourself, even if everyone gives up on you. Your decisions should be made on the basis of your logic and intuition rather than someone else’s judgement. Chris does not give up on the internship even when his wife leaves him. Instead he gets even more determined to succeed. Listen to your heart and no one else’s opinion. Immerse yourself in your dream idea!

5. Never show signs of weakness

Always show your strengths. The moment you do that, everything will fall into place. Fear is the toxin, hope and belief is the antidote. Chris always greeted everyone on a positive note and did not even flinch when he has to shell out his last 5$ to pay for executives cab fare. Quick thinking and how you transform your weaknesses into strengths is what matters eventually.

Chris Gardner’s remarkable achievements show that no matter how many obstacles you face, the rules for success are the same for everyone. If you follow the rules, no matter how difficult it gets, you will reap the reward of your own “Pursuit of Happyness.”

5 Effective Strategies to Market Your Freelance Career

Business How To’s

25 August 2021

5 Effective Strategies to Market Your Freelance Career

  • Posted by awfis

What’s better than doing the job that you love and getting paid for it? That’s the life of a freelancer. You get the best of both the worlds where you get to mix passion and profession together. Freelancing is no magic, you can either be an individual with your own website or a part of a team who has been taking up projects from various clients for over a period of time.

Freelancer

If you are a freelancer and are wondering about the next steps to make it successful, here are some strategies that we think will help you make it a long term career.

  1. Create a checklist of your deliverables:

The first step to promote your freelance career is to list down your skill set in the order of strength. It can be writing, graphic designing, creating video content or anything else that you think is your forte. Once you have this list ready, your reality will be in front of your eyes. The strengths can eventually result into a niche market of your own, via freelancing.

  1. Make sure your content reaches your target audience:

In today’s world identifying your potential client, plays key while marketing for the freelancer. In order to ensure this, make sure that your content is shared on all the social media platforms. For example, if you have created a video make sure you maximize it on YouTube, Facebook, Twitter and other relevant social media platforms. With this you can increase the visibility of your content and influence them with your content.

  1. Do not forget to focus on e-mail marketing:

E-mails are the best way to reach the correct target audience. The click through rate might be less compared to other social media platforms but around 90% of the audience using e-mails check it daily. People sign up for various sites knowing that they would be receiving mails from that particular website. It is the easiest way to cover a large network area. If you are a little shy or lack the opportunity to connect with the right market, cold emailing will be the best way to reach out to your target.

  1. Maintain your website traffic and Inquiry section efficiently:

The easiest way for people to contact you is through the inquiry section on your website. Do respond to inquiries as soon as you can as this will uplift the credibility of your brand. Along with that make sure Search Engine Optimisation and Search Engine Marketing for your page/website is up to mark. As they say, optimizing the page is better than being lost somewhere amidst millions of similar searches.

  1. Get referrals from your clients:

Referrals provide authenticity to your work. Word of mouth is better than any other form of marketing. Use it as an advantage and get credibility for your work. Effective relationships are built over a period of time. They not only enable you to reach out to your potential clients, but also motivate you to perform better. Do not hesitate to get testimonials from clients you’ve delivered great service to!

Using these strategies will prove beneficial for kick-starting your freelancing career. If you are ready and confident about your freelancing skills, it’s time to implement these strategies in reality!