Summer Training Project Report

On
“Sales and marketing”
Submitted to

I.K. GUJRAL PUNJAB TECHNICAL UNIVERSITY

KAPURTHALA

In partial fulfilment of the requirement for the

award of degree of

Master of Business Administration (MBA)

Submitted by Supervisor

Name of the Student: Indrajeet Kumar Mr. Sumit korpal

University Roll no. 2207585 Designation: Sales manager

DEPARTMENT OF MANAGEMENT

SWAMI VIVEKANAND GROUP OF INSTITUTES BANUR

RESEARCH STUDY ON SALES AND MARKETING

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 Final project report submitted for the completion of

“SUMMER INTERNSHIP”

in

SKILL LABS

Submitted By:

Neeraj Ranout

Swami Vivekanand Institute of Engineering and Technology

Under supervision of:

Dr Himesh Sharma

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3
 STUDENT DECLARATION

I, “NEERAJ RANOUT” hereby declare that I have undergone my summer training

at “Skill Lab Resource Services Private Limited” from 01.07.2023 to 24.08.2023. I
have completed a research project tilted “RESEARCH ON MSME” under the
guidance of Mr. HIMESH SHARM. Further I hereby confirm that the work
presented herein is genuine and original and has not been published elsewhere.

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 FACULTY DECLARATION

I hereby declare that the student Mr. NEERAJ RANOUT of MBA (3) has
undergone his/her summer training under my periodic guidance on the
Project titled “RESEARCH ON MSME”. Further I hereby declare that the
student was periodically in touch with me during his training period and the
work done by student is genuine & original.

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 ACKNOWLEDGEMENT

I would sincerely like to express my gratitude to Dr Himesh Sharma(founder &

director) of skill labs for providing me this wonderful opportunity to work on
the project, “Research study on MSMEs” during my summer internship. His
mentorship and valuable suggestions were the key aspect in carrying out my
research work and successfully completing my project. Finally, a huge thanks
to my teammates and friends who supported me throughout for timely
completion

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 INDEX
Chapter No. Chapter Title Page No.
1. Introduction to company
8-9
Introduction to MSMEs
10-11
2. Literature Review 12-15
Introduction to project
and objective of study
16
3. Methodology
17
Questionnaire
18-22
4. Data analysis and 23-29
interpretation
4.1 Venus Garments
4.2 Pawana Trading Co.
4.3 Anand Enterprise

5. Suggestion and
recommendation of
30-31
study

6. Reference
32

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 CHAPTER 1

INTRODUCTION TO SKILL LAB

Skill Labs is a dynamic and innovative company dedicated to advancing skill

development and education. Headquartered in Chandigarh, India, Skill Labs has
gained prominence for its unique approach to learning and its commitment to
empowering individuals with practical skills for personal and professional
growth.

Established with a vision to bridge the gap between theoretical knowledge and
practical application, Skill Labs has garnered a reputation for excellence in the
education and training sector. By harnessing the power of technology, industry
expertise, and a learner-centric philosophy, the company strives to enhance
employability and nurture individual potential.

2.Key features of Skill Labs:

1. Mission and Values: Skill Labs is driven by a mission to provide
accessible, high-quality education that equips learners with skills relevant
to today's rapidly evolving world. The company values innovation,
integrity, collaboration, and a relentless dedication to improvement.
2. Wide Range of Offerings: Skill Labs offers an extensive array of courses,
workshops, and training programs. From technical skills like coding and
data analysis to soft skills such as communication and leadership, the
company covers a diverse spectrum to cater to various learning needs.
3. Industry Partnerships: Recognizing the importance of industry
alignment, Skill Labs collaborates closely with businesses and experts.
This collaboration ensures that the company's offerings remain up-to-date
and relevant to the demands of the professional landscape.
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3.Key Challenges Facing the MSME Sector

1. Access to Finance: Limited access to formal financial institutions and high

collateral requirements hinder MSMEs' ability to secure adequate funding
for growth, technology adoption, and market expansion.
2. Infrastructural Constraints: Inadequate physical infrastructure, such as
transportation, electricity, and telecommunications, can hamper MSMEs'
productivity and connectivity, particularly in rural areas.
3. Skill Shortages: A shortage of skilled labor and a lack of access to quality
training can limit the capacity of MSMEs to compete effectively and adopt
modern technologies.
4. Regulatory Burden: Complex regulatory compliance procedures,
excessive paperwork, and bureaucratic hurdles can disproportionately
affect smaller enterprises with limited administrative resources.
5. Lack of Market Access: MSMEs often struggle to penetrate larger
markets due to limited marketing resources and the dominance of
established players. Limited access to international markets also restricts
their export potential.
6. Global Economic Uncertainties: Economic downturns and external
shocks can disproportionately impact MSMEs due to their limited financial
reserves and resources.
7. Informal Operations: Many MSMEs operate in the informal sector,
which can limit their access to formal financing, markets, and business
development opportunities.
8. Technology Adoption: MSMEs may face challenges in adopting modern
technologies and digital tools, which are essential for efficiency,
competitiveness, and keeping up with evolving market trends.

In conclusion, the MSME sector is a cornerstone of economic development,

contributing significantly to employment, innovation, and economic
diversification. However, the sector's growth potential is constrained by a range
of challenges, including limited access to finance, infrastructure deficits,
regulatory complexities, and technological gaps.

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 INTRODUCTION

The enterprises are further categorized based on investment in equipment and

annual turnover The Micro Small and Medium Enterprises (MSMEs) sector is a
major contributor to the socioeconomic development of our country. In India,
the sector has gained significant importance due to its contribution to Gross
Domestic Product (GDP) of the country and exports. The sector has also
contributed immensely with respect to entrepreneurship development
especially in semi-urban and rural areas of India.
According to the provisions of Micro, Small & Medium Enterprises
Development (MSMED) Act, 2006 the Micro, Small and Medium Enterprises
(MSME) are classified in two classes i.e., Manufacturing

Fig 1: Classification of MSMEs

India is home to approximately 6.3 crore MSMEs. As of May 16, 2021, The
Udyam Registration portal of MSME Ministry registered 30,00,822 MSMEs,
which replaced the former process of filing for Udyog Aadhaar Memorandum
(UAM).
Registered microenterprises stood at ~ 28 lakh (93%), followed by small
enterprises at 1.78 lakh (6%) and midsized enterprises at 24,657 (1%). The
Indian MSMEs sector contributes about 29% towards the GDP through its
national and international trade.
The BSE SME (small and medium enterprises) platform is expected to witness
>60 SMEs to enter the market in one year (2021-22) to bring up equity funds
for meeting their business requirements. The initial public offering (IPO) route
witnessed 16 SMEs enter the market.
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Altogether, they raised Rs. 100 crore (US$ 13.74 million) in 2020.

MSMEs are being encouraged to market their products on the e-commerce

site, especially through Government e-Marketplace (GeM), owned and run by
the government, wherefrom Ministries and PSUs (public sector undertakings)
source their procurement. As of July 20, 2021, the Government e-Marketplace
(GeM) portal served 7 million orders worth Rs.122,405 crore (US$ 16.39
billion) from 2.2 million registered sellers and service providers for 53,193
government buyers.
Indian Micro, Small and Medium Enterprises (MSMEs) are rapidly adopting
digital payments over cash, with 72% payments done through the digital mode
compared with 28% cash transactions. Rise in digital adoption presents
prospects for further growth in the sector. A majority of Indian companies
(57%) believe there is a need to revive the micro, small and medium
enterprises (MSMEs) sector, which has been hit due to the COVID-19
pandemic, in order to boost rural employment, according to a report.
According to the report by Genius Consultants, titled the 'Sudden Rise of Rural
Unemployment', the country's economy was adversely affected by the
pandemic and almost all sectors and industries were impacted, especially the
MSME sector that faced a huge set-back. Genius Consultants Chairman and
Managing Director, R P Yadav said, "Rural unemployment has always been a
major concern even before the pandemic. With businesses and manufacturing
slowing down, the situation has deteriorated even further."

Domestic business requires a strong financial stimulus with concessional

working capital loans to ensure adequate liquidity is maintained in business
operations from the government and financial institutes.

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 CHAPTER 2
LITERATURE REVIEW
The research work included to learn about various opportunities available in
our country for growth of MSMEs. There are several Govt. loan and insurance
schemes which can be claimed by MSMEs for financial support.

Initially, I studied about these available opportunities and then I moved on to

study some articles on the desired financial literacy which should be
possessed to avail these schemes. All of my learnings from different sources
are described below:

Under the Chairmanship of Hon'ble Prime Minister Shri Narendra Modi, the
Ministry of Micro, Small and Medium Enterprises (MSME) implements various
programmes/ MSME schemes for the development and promotion of MSMEs
across the country.
Moreover, the Government of India has been really proactive to ensure that
all the benefit of these MSME schemes reaches to the MSMEs in time. To
provide immediate relief to the MSME sector, various announcements (in
addition to the various MSME schemes) have been made under the
Atmanirbhar Bharat Package. The most important ones included:
• INR 3 lakh crore collateral-free automatic loans for MSMEs to buy raw

material, meet operational liabilities and restart businesses.

• Revision of MSME definition to extend maximum benefits to the sector.
• Disallowing global tenders in procurements up-to INR 200 crores to create
attractive opportunities for domestic players.
• Clearing of MSME dues by the Government and Public Sector Units (PSUs)
within 45 days.

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And also, there are various schemes of Indian Government, which a MSME can
avail according to its requirement or business activity:
1) Prime Minister Employment Generation Programme (PMEGP)

2) Credit Guarantee Trust Fund for Micro and Small Enterprises (CGTMSE)

3) Credit Linked Capital Subsidy for Technology Upgradation (CLCSS)

4) Market Promotion & Development Scheme (MPDA)

5) Revamped Scheme of Fund for Regeneration of Traditional Industries

(SFURTI)
6) Coir Vikas Yojana (CVY)

7) ZED Certification Scheme

8) A scheme for Promoting Innovation, Rural Industry and

Entrepreneurship (ASPIRE)
9) International Cooperation

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 Fig: Structure of the OECD/INFE framework

In particular, the framework is expected to support the development of:

• learning frameworks for financial education initiatives (including

training) targeting MSMEs and potential entrepreneurs, as well as
deepening the financial content of programmes covering business
skills more broadly

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• assessment frameworks for measuring the financial literacy of MSMEs
and for use in programme evaluation.

• Udyamimitra portal is part of institutional solutions from SIDBI

(Small Industries Development Bank of India) enabling access to
credit. It is positioned as a universal enterprise loan portal which
endeavours to change the way access to credit is happening.
• Udyamimitra, shapes the dreams of aspiring individuals by
being one stop platform attending to both demand (aspirants looking
for becoming entrepreneurs) and supply side (handholding agencies,
lenders, stakeholders). Earlier an aspirant had to struggle for trusted
access to advisors/mentors. He/she had to travel from pillar to post
to access credit. Anywhere any time access (net and mobile enabled)
to knowledge repository (300+project profiles), 17000+ handholding
agencies, positioning of Certified Credit Counsellors (CCCs for credible
credit counselling > 500 counsellors on board), pool of 145 lenders
(95 Banks and 50 new age lenders like NBFCs, Fin-techs, Small Finance
Banks, Foreign Banks) on e-market place and so on are empowering
the domain.

• Fig 4: Steps for easy financing through Udyamimitra

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 INTRODUCTION TO PROJECT

Micro, Small, and Medium Enterprises (MSMEs) form the backbone of

economies worldwide, playing a crucial role in fostering innovation,
generating employment, and contributing to economic development.
Recognizing the significance of MSMEs, our project is dedicated to
empowering these enterprises, providing them with the tools and
support needed to thrive in today's dynamic business environment.

Project Objectives:

1. Capacity Building: Enhancing the skills and capabilities of MSMEs

through targeted training programs, workshops, and access to
resources that strengthen their core competencies.
2. Financial Inclusion: Facilitating better access to finance for
MSMEs, ensuring they have the capital needed to invest in growth,
innovation, and operational efficiency.
3. Technology Adoption: Encouraging the adoption of modern
technologies to streamline processes, improve productivity, and
enhance competitiveness in the market.
4. Market Access: Creating avenues for MSMEs to enter new
markets, both domestically and internationally, through strategic
partnerships, networking opportunities, and market intelligence.
5. Policy Advocacy: Engaging with policymakers to address
regulatory challenges, advocate for MSME-friendly policies, and
create an enabling environment for sustainable growth.

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 CHAPTER 3

METHODOLOGY

A well-defined questionnaire is prepared to record responses from MSME

businesses. These questions are framed with respect to the objectives of
our research to get a clear idea of the current situation by questioning some
nearby MSMEs. Skill Labs has provided us a numeric coding pattern for
corresponding responses to each question which would be helpful in
analysing the current situation of MSMEs in a better and efficient way.

The whole questionnaire is designed on Excel and the corresponding

numeric code sheets are also prepared using Macros and VBA. The
questionnaire is very easy and simple to be responded by anyone. Hence,
after the collection of data, we will analyse the responses and will be in
good position to understand the situation of MSMEs and can suggest them
appropriate measures for their growth.

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 QUESTIONNAIRE
These are the snapshots of the questionnaire designed in Excel for taking
responses by MSMEs.

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 CHAPTER 4
DATA ANALYSIS AND INTERPRETATION

Business background of the MSMEs companies

For my research, I interviewed some MSME organisations personally and

got their responses in the questionnaire made. Later, these responses were
analysed to find out the financial literacy scores and other important
aspects needed for this project. The details of the organisation and their
responses are provided below:

OWNER : Mr. Kishor Chand

LOCATION : Jahu

BUSINESS TYPE : Trading And Service

This shop was started in 1994. It is registered in patrol. This shop belongs to
only one person.
Its annual return is above 5 lakh and up to 10 lakh.
In covid-19, their business has been affected by which their annual turnover
has gone up. still in their business not close. It uses both current and savings
accounts.His personal account and business account are separate. It keeps
your financial records online.

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 4.2 PAWNA TRADING CO.

OWNER: Mr. Pawna

LOCATION: Hamirpur
BUSSINESS TYPE: Pawna Trading Co.

We all have a General Stores from where we purchase our everyday household
items. These stores cater to all our requirements from toothpaste to cleaning
products. As most of the stores have tie up with FMCG distributors, they have
all the most demanded products from some renowned brands. You can even
start your monthly cycle of milk, eggs, and bread here so that you have to pay
once in every month for the everyday essential items.

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PAWNA TRADING CO.

This shop was started in 1957. It is registered in GST. This shop belongs to only
one person.
Its annual return is above 1cr and up to 5cr.
Their business has been not affected by covid-19. still in their business not
close. It uses both current and savings accounts.His personal account and
business account are separate. It keeps your financial records online. 5 to 9
employees work in it. The one who answered the question is Male. His age is
36.

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 4.3 ANAND ENTERPRISES

OWNER : Mr Praveen

LOCATION : Jahu

BUSINESS TYPE : Trading And Service

Anand Enterprises : This shop was started in 1993. It is registered in GST. This
shop belongs to only one person.
Its annual return is above 30 lakh and up to 1cr
Their business has been affected by covid-19. still in their business not close. It
uses both current and savings accounts.His personal account and business
account are separate. It keeps your financial records online. 2 to 4 employees
work in it. The one who answered the question is Male. His age is 43. it has
insurance. has taken a loan from the bank.

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29
 CHAPTER 5
Suggestion and Recommendations of study

For this project, I interviewed 3 MSME organisations and made them fill the
questionnaire form. The responses were analysed to calculate their financial
literacy scores which are provided in chapter 8 above. Apart from the
questions required for calculation of financial literacy, there were some
other questions in the questionnaire which were analysed to get an idea
about the effect of Covid-19 on these organisations and their daily business
activities.

Overall, from the financial literacy scores calculated above and responses to
other important questions, some conclusions can be made:

1) The financial behaviour and attitude scores of all the respondents were

very high. All of them got maximum possible scores for financial
attitude as per the analysis. This signifies that all of them are serious
for their business and that is reflected in their attitude and behaviour.
If they are exposed to good opportunities, these business persons
through their leadership can take their respective businesses to great
heights.
2) 2 respondents scored low for financial knowledge. They need more

education of the fast emerging and changing financial world to remain

up to date with the current scenario.
3) Almost all the business owners in my survey were fairly aware with the

different types of financial instruments and schemes available expect

for Mr. Sharat Kumar (owner of S.S. Computers and Security Systems);
he was only aware of 8 out of 20 items listed in the questionnaire.

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4) Although the financial awareness of respondents was good, but none

of them are taking advantage of these instruments and schemes in

their business. Out of the 20 items listed in the questionnaire, these 4
businesses mentioned in the survey (chapter 8) were respectively using
3,2,8 and 6 instruments. The owners have only heard of these items
and they do not have appropriate knowledge to make use of these. So,
they need to be educated about the various financial instruments and
government schemes to grow their business.
5) Only 1 business was having its website to carry out the operations

digitally. The business owners should be educated about the

transformation of digital world and it plays an important role in the
current scenario. Digital presence is a key role for growth in today’s
world.
6) All of the businesses have traditional accounts i.e., having bank

account in a physical branch. The main reason for this was the
reliability issues on opening the account with the bank which is not
having any physical existence. Initially, government should have to
take steps with regards to this to develop trust in digital banks.
7) This was a fact that Covid pandemic severely hit the MSME sector. But,
then also none of my respondents applied for a new loan.
Alternatively, some of them stopped their business functions for some
days and some delayed their payments but financial help was not taken
from any financing companies. This is because most of the owners
stated that the application procedure was too complex to apply for a
loan. So, this sector needs to be educated about the Udyamimitra
portal which I had mentioned in the literature survey to get easy
financing.

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6. REFERENCES
https://cleartax.in/s/msme-loan-scheme-2020
https://www.investindia.gov.in/schemes-msmes-india http://www.ficci-
cmsme.in/insurance.html https://www.ibef.org/industry/msme-presentation
https://economictimes.indiatimes.com/small-biz/sme-sector/mostbelieve-
revival-of-msme-sector-can-boost-rural-
employmentreport/articleshow/86337214.cms
OECD/INFE CORE COMPETENCIES FRAMEWORK
LITERACY FOR MSMES © OECD 2018
BANKABILITY KIT FOR MSE ENTREPRENEURS: SIDBI

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