ZED

      As the MSMEs are amongst the strongest drivers of economic development, innovation and employment, it becomes imperative to strengthen their ecosystem. The Government of India envisioned the Zero Defect Zero Effect (ZED) initiative to enhance MSME competitiveness, make them sustainable and transform them as National and International Champions.

MSME Sustainable (ZED) Certification is an extensive drive to create awareness amongst MSMEs about 'Zero Defect Zero Effect' (ZED) practices and motivate & incentivise them for ZED Certification while also encouraging them to become MSME Champions. Through the journey of ZED Certification, MSMEs can reduce wastage substantially, increase productivity, enhance environmental consciousness, save energy, optimally use natural resources, expand their markets, etc. MSMEs will also be motivated to adopt best practices in work culture, standardisation of products, processes, systems etc. in order to enhance their global competitiveness and sustainability. The ZED Certification aims at enhancing the competitiveness of an MSME through assessment, handholding, managerial and technological intervention etc., hence it is not just a Certification.

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MSME INSURANCE SCHEME

 About the Scheme

The Department of Industries and Commerce, in alignment with the Government’s vision to create a sustainable ecosystem for industries in the State, is introducing an Insurance scheme for the Micro, Small and Medium Enterprises (MSMEs) in the state. This scheme aims at providing financial protection to MSMEs against unforeseen risks, which can have a detrimental impact on their businesses. The scheme intends to provide reimbursement of up to 50 percent of the annual insurance premium paid by MSMEs and shall be implemented through the District Industries Centres (DICs). An amount of Rs. 30 Lakh has been allocated for the scheme for the financial year 2023-24..

MSME Insurance scheme shall be operated through the four leading Public Sector Insurance Companies in the State, i.e.

1. National Insurance Company Ltd.
2. United India Insurance Company Ltd.
3. Oriental Insurance Company Ltd.
4. New India Assurance Company Ltd.

As part of this, the State government signed MoUs with these four Public Sector Insurance Companies on 12^th October 2023.

Benefits under the scheme

The multitude of risks faced by MSMEs includes natural disasters, fire, theft, accidents, and market fluctuations, leaving them vulnerable to significant financial losses. These losses can have long-lasting consequences on the sustainability of the business. However, with adequate insurance coverage, MSMEs can protect themselves against unforeseen risks and recover quickly from any losses. By providing financial protection, insurance coverage instills confidence in MSMEs, allowing them to take calculated risks and expand their businesses. Thus, the Insurance scheme shall enable the MSMEs to thrive in a competitive business environment.

Eligibility for availing assistance under the Scheme

• All MSMEs in the manufacturing or service or trade sector having valid UDYAM registration in Kerala and have enrolled for insurance under the “Bharat Sookshma/ Laghu Udyam Scheme” from any one of the four public sector insurance firms that are part of this scheme for the period beyond April 1, 2023, are eligible for assistance under this scheme
• The assistance under the scheme shall be provided in the form of reimbursement
• Enterprises are eligible for reimbursement of 50% of their annual insurance premium (up to a maximum of Rs. 2500)

How to apply for the scheme

• If the applicant MSME has not taken Insurance Policy yet, there is a provision in the portal to intimate its willingness to the four Insurance companies. The Insurance Companies will upload their premium amounts to the applicant through the portal. The applicant can choose the most suitable quote through the portal. Hence the MSME can enjoy the best premium amount through this scheme.
• MSMEs shall purchase the insurance policy by paying the full annual premium from any one of the four public sector insurance firms that are part of the scheme
• After purchasing the policy, MSME shall submit the application for reimbursement to the District Industries Centre concerned through the online portal; Along with the application, UDYAM registration certificate of the unit, insurance policy document and receipt of premium paid should also be submitted as supporting documents
• DIC shall calculate and reimburse the eligible assistance amount to the bank account of the MSME unit (50% of the annual premium paid or Rs. 2500, whichever is lower).

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MSME Insurance Scheme Guidelines Modified -G.O(Rt)No.678/2024/ID Dated:29.07.2024

 MSME Insurance guidelines modified- Click here

Year of Enterprises 2.0

The Government of Kerala declared the year 2022-23 as the year of entrepreneurship to start one lakh micro small and medium enterprises (MSME) in the state. The project achieved its target within 245 days. As of 31^st March 2023 there were 139,837 new MSMEs established in the state with an employment generation of 300,020. The Entrepreneurship Year 2.0 aims to launch one lakh new enterprises in the next financial year (2023-24) following the same model.

The Year of Enterprises 2.0 has the following objectives:

• To create one lakh new MSMEs in the state of Kerala in the financial year 2023-24.
• To provide financial and marketing support to MSMEs.
• To enhance the skills and knowledge of entrepreneurs and build their confidence.

The following activities will be carried out in the financial year 2023-24 to achieve the objectives of the Year of Enterprises 2.0:

1. Planning and Awareness (April – June 2023):

District-wise target setting will be done through bottom-up planning. Monitoring Committee meetings will be conducted at district and local body levels to review the performance of the previous year. A detailed action plan will be formulated for the financial year 2023-24. Public orientation campaigns will be conducted for entrepreneurs in all local bodies.

2. Loan, License, and Subsidy Campaign (July – Sept 2023):

A campaign will be launched in all local bodies to provide information and support regarding loans, licenses, and subsidies available for MSMEs.

3. Marketing Campaign at Local Body Level (Oct – Dec 2023):

A marketing campaign will be conducted in all local bodies to promote the products and services of MSMEs. The campaign will use various media such as print, electronic, and social media.

4. Mentoring, Networking, and Confidence Building (Jan – Mar 2024):

A mentoring system will be launched where mentors and MSMEs will be registered. An MSME Networking Portal (Kerala Global Linker) will be introduced where MSMEs (new and existing) of all local bodies will be registered. MSME meets will be conducted regularly to provide a platform for MSMEs to network and share their experiences.

The Year of Enterprises 2.0 aims to create one lakh new MSMEs in the state of Kerala in the financial year 2023-24. The government is committed to providing financial and marketing support to MSMEs and enhancing the skills and knowledge of entrepreneurs. Through the implementation of the action plan, the government aims to build a vibrant entrepreneurial ecosystem in the state.

Ensuring Sustainability of Enterprises in Kerala

The Kerala government launched the Entrepreneurial Year scheme in 2022-23 with the aim of creating one lakh new enterprises in a year. The scheme has been highly successful, with 139,837 new MSMEs created and 300,020 jobs generated as of March 31, 2023. The next step is to ensure the success and sustainability of the newly formed enterprises.

The government plans to implement the MSME Sustainability Plan in FY 2023-24 with the following objectives:

• Ensure sustainability of enterprises formed as part of the Entrepreneurial Year scheme
• Ensure that at least 70% of the new MSMEs in the state operate successfully
• Ensure 5% growth rate in turnover of new MSMEs in the state

In order to achieve the above objective, both short term and long-term activities are envisaged to be undertaken.

Short term activities

The short-term activities proposed to be implemented in the financial year 2023-24 include the following major steps:

1. Current Status Assessment & Need Assessment Survey of MSMEs:

At this stage, the situation of newly formed enterprises will be mapped, and a needs assessment survey will be conducted. The information gathered will be recorded in a sustainability portal specially developed for this purpose. The survey will gather information on the operational status of the enterprise, challenges/problems faced, reasons for closure, plans for revival of non-functional units, assistance required/other special needs.

2. Special campaigns:

Special campaigns will be conducted for MSMEs based on the findings of the needs assessment survey. Refresher sessions of general orientation trainings will be conducted which will include classes on finance, marketing, technology, licensing, industry prospects, potential for cluster development, new and innovative business ideas, etc. Campaigns to expedite loan applications of MSMEs in coordination with banks and financial institutions Marketing campaigns aimed at enabling MSMEs to position their products/services in the market. A special drive will be undertaken to locate and enroll supermarkets and civil supplies outlets in each local body to facilitate installation of MSME products.

3. Capacity building:

Training sessions on finance, marketing, technology, quality control, and regulatory aspects of business will be provided to MSMEs based on the feedback from the needs assessment survey. Special trainings/workshops on innovative business ideas, potential business opportunities in various sectors, etc. will be conducted at taluk level. Campaigns will be conducted to create awareness among MSMEs about the benefits of doing business in partnership mode.

4. Mentorship and Networking:

A statewide network of mentors from the business community will be developed to mentor the next generation of entrepreneurs. A mentorship portal will be developed where existing MSMEs and people interested in becoming mentors can register and connect with each other. Promotion of the portal will be done through industrial associations. District/Taluk wise conclaves of new and existing entrepreneurs will be conducted for networking. Documentation and publication of case-studies on MSME success stories will be done. Monitoring committee meetings will be held at state, district and local body levels to review sustainability activities.

Long term activities

The Long-term activities to ensure sustainability of MSMEs include:

1. Automated System for MSME Performance Monitoring:

An online portal will be developed to analyze various performance indicators of MSMEs like GST bill and utility payments and identify MSMEs facing problems in their performance. This information will be used to develop appropriate intervention measures to prevent MSMEs from going out of business.

2. State level networking cluster:

A state-level networking cluster will be created to promote collaboration and partnership among MSMEs.

3. Permanent marketing infrastructure at taluk level:

Permanent marketing infrastructure will be created at taluk level to promote MSME products and services.

4. MSME Networking Portal (Global Linker Model)

An MSME networking portal based on the Global Linker model will be developed to provide a platform for MSMEs to connect, collaborate and grow their businesses.

5. Special incentives

Special schemes like financial assistance for patents and trademarking, interest-free loans, SGST exemption for 3 years, stamp duty and registration charges reimbursement and power tariff subsidy for 5 years, etc. will be introduced.